RAISE CAPITAL THROUGH CROWDFUNDING 

At the Most Affordable Rate...

We can help you:

  • Identify if a crowdfunding offering is right for your business

  • Draft the required offering documents

  • Qualify or approve the offering through the SEC

  • Connect you with third-party service providers to ensure the offering is a success

  • Comply with ongoing SEC filing requirements

Get a Free Consultation!
 

Crowdfunding Benefits:

  • Exemptions from registration (Reg. CF and Reg. A)

  • Raise up to either (i) $1,070,000, or (ii) $50 million over 12 months

  • Issue free-trading shares (Reg. A)

  • Limited SEC disclosure

  • Limited financial statement requirements (Reg. CF and Reg. A Tier 1)

  • No PCAOB audit required (Reg. A Tier 2)

  • Non-accredited investors allowed

  • General solicitation allowed

  • For additional information on Reg. CF please click here

  • For additional information on Reg. A please click here

FAQs

For FAQs on Reg. A please click here

 

What are the general requirements to satisfy Crowdfunding as an exemption from registration?

 

Under Regulation Crowdfunding:

  • All transactions under Regulation Crowdfunding must take place through an SEC-registered intermediary such as a broker-dealer or a FINRA-registered funding portal. A list of all FINRA-registered funding portals can be found here.

  • Companies are allowed to raise an aggregate of $1,070,000 in a 12-month period.

  • Investors are limited in the amount they can invest in crowdfundings in a 12-month period.

  • SEC disclosure is required in a Form C and subsequent filings.

What are the benefits and downsides of using Regulation Crowdfunding as an exemption from registration?

 

The benefits to using a Regulation Crowdfunding exemption are as follows:

  • Issuers may offer and sell to investors who are not “accredited investors;”

  • Issuers may conduct concurrent private offerings (such as pursuant to Rule 506(c) of Regulation D);

  • Issuers are subject to limited SEC reporting requirements; and

  • Broadens issuer shareholder base.

  • The downsides to using a Regulation Crowdfunding exemption are as follows:

  • Offers and sales must be made through an intermediary;

  • Issuers relying on Regulation Crowdfunding must file a Form C with the SEC which must include financial statements;

  • Investors may only invest subject to certain limitations;

  • Securities sold in Regulation Crowdfunding offerings generally cannot be resold for one year;

  • Bad-actor disqualifications apply to Regulation Crowdfunding offerings; and

  • Investors who are not high net-worth individuals are not accustomed to investing in high-risk small companies which means they may require more attention than high net-worth individuals.

What are the requirements for financial statements in a Regulation Crowdfunding offering?

What are the requirements for financial statements in a Regulation Crowdfunding offering?

 

 

 

 

 

What are the investor limitations in a Regulation Crowdfunding offering?

 

READY TO GET STARTED ON YOUR CROWDFUNDING?

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