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  • Jenny Kassan
    Jenny Kassan answered Mar 27

    Can funding portals do sales and marketing activities to solicit investors on behalf of the issuers on their portal?

    Unless the portal is a licensed broker-dealer, it may not offer investment advice or recommendations or solicit purchases, sales, or offers to buy the securities offered or displayed on its platform.

    It may however apply objective criteria to highlight offerings on its platform where: 

    (i) The ... more

    • Regulations & Compliance
    • Funding Portals
  • Scott McIntyre
    Scott McIntyre answered Mar 27

    What is a SAFE (Simple Agreement for Future Equity) and how does it relate to investment crowdfunding?

    A SAFE is an investment vehicle which allows investors to invest in a company in exchange for the future equity it holds. Similar to a stock option, it is commonly used within the context of investment crowdfunding.

    Stock option agreements and safe instruments used in crowdfunding are similar in tha... more

    • Issuer Education
    • Investor Education
  • Assurely answered Mar 22

    How can Assurely be a partner to the crowdfunding platforms that support companies raising capital?

    Assurely’s TigerMark Directors and Officers Insurance is the leading insurance product for companies raising capital using the internet and the Partners that support them. As a company, our primary goal is to benefit all stakeholders within the crowdfunding industry, including investors, Issuers, an... more

    • Regulations & Compliance
    • Insurance
  • ChatGPT BOT
    ChatGPT BOT answered Mar 21

    How is 506(b) related to crowdfunding?

    506(b) offerings are not typically considered to be a form of crowdfunding. Crowdfunding generally refers to a method of raising funds from a large number of people, often through online platforms, in exchange for equity or other forms of compensation.

    506(b) offerings, on the other hand, are privat... more

    • Regulations & Compliance
  • Brian Christie
    Brian Christie answered Mar 19

    What is a good way to find impact investment opportunities that are currently crowdfunding?

    Thanks for the great question. With nearly 90 FINRA regulated funding portals and thousands of broker dealers all eligible to facilitate issuers for their crowdfunding raises, you aren't alone in looking for deals that meet certain characteristics (e.g. impact investments). Luckily, there do exist a... more

    • Impact Investing
    • Reg A+
    • Reg CF
  • Meseret (Messi) Warner
    Meseret (Messi) Warner answered Mar 17

    What is the potential for crowdfunding in Africa?

    Crowdfunding in Africa is in its infancy stage of development. Just like in the U.S., donation and reward-based crowdfunding has been trying to take hold in the market for the last several years. That said, equity crowdfunding is springing around since 2015/16 with its potential being recognized by ... more

    • International
  • ChatGPT BOT
    ChatGPT BOT answered Mar 15

    What is the attitude toward private market access by the author of the following statement?

    The Commission should examine ways to expand their access to capital, but it should do so in a way that mitigates the risks posed by offering investors fewer or no protections.
    The author of this statement has a critical attitude towards private market access. They argue that retail investors lack th... more
    • Regulations & Compliance
  • ChatGPT BOT
    ChatGPT BOT answered Mar 7

    Why are VCs considered gatekeepers?

    VCs, or venture capitalists, are considered gatekeepers because they play a significant role in determining which startups and entrepreneurs receive funding and support. VCs typically have significant financial resources and expertise in evaluating the potential success of new businesses.

    Startups o... more

    • Unclassified
    • Regulations & Compliance
    • Reg A+
    • Reg CF
  • Brian Belley
    Brian Belley answered Feb 28

    Who has a better chance at raising funds under investment crowdfunding - a company with a single founder or a company with co-founders?

    Before answering the question, it's important to understand the current state of how many equity crowdfunding companies are run by solo founders vs. two or more founders. From a recent KingsCrowd Chart of the Week, we can see that roughly 47% of all equity crowdfunding raises since 2020 were run by ... more

    • Equity (RIC)
    • Reg CF