Completely different process for the two sorts of offering.

In a Reg CF offering, the Form C is filed with the SEC and the moment it shows up on the EDGAR system, the issuer can start accepting investment commitments on the intermediary's site. The SEC does not review or sign off in any way. That doesn't mean they (and other regulators) aren't looking, though!

In a Reg A offering, the SEC must review and "qualify" the offering before it goes live. (We don't use the term "approve"; the SEC never approves or blesses offerings.) If it's a Tier 1 Reg A offering, the states that the offer will be made into also have to sign off.

In both cases, you can "test the waters" before filing or qualification, but any materials you use to test the waters need to be filed with the SEC.

Regulation A+ (Reg A+) is a set of rules and regulations put in place by the Securities and Exchange Commission (SEC) that allows small and medium-sized companies to raise funds from a large number of investors through a mini-IPO process. Reg A+ is an update to the existing Regulation A, which was adopted under the JOBS Act.

Reg A+ allows companies to raise up to $75 million in a 12-month period from both accredited and non-accredited investors, and it allows the securities to be sold to the public, which differs from Regulation Crowdfunding (Reg CF) which has a cap of $5 million in a 12-month period.

The process of Reg A+ is similar to a traditional IPO, but it is less costly and less burdensome for companies, with fewer disclosure requirements and ongoing reporting obligations, but it still requires the companies to file an offering statement with the SEC, and the SEC will review the statement to ensure compliance with the rules and regulations.

Reg A+ is seen as a way for smaller companies to access the public markets, by providing an alternative to traditional IPOs and Reg D, which are typically only available to larger, more established companies. Reg A+ also allows companies to test the waters and gauge investor interest before committing to a full-scale IPO.

In summary, Reg A+ is a new regulation that allows smaller companies to raise capital from a large number of investors through a mini-IPO process, by complying with certain rules and regulations set by the SEC. It allows companies to raise more capital than Reg CF and it has fewer disclosure requirements and ongoing reporting obligations than a traditional IPO. 

As someone who believed in the power of community and collective action to bring about change, I would likely see the benefits of crowdfunding and impact investing. These forms of financing allow individuals to pool their resources together to support causes and businesses that align with their values and beliefs.

Crowdfunding, in particular, has the potential to provide small businesses and startups, particularly those owned by minorities and disadvantaged communities, with access to much-needed capital. This can help to create jobs and stimulate economic growth in these communities, which is vital to achieving true equality and justice.

Impact investing, on the other hand, allows individuals to invest in businesses and projects that not only provide financial returns but also have a positive social and environmental impact. It is a way for people to use their financial resources to promote sustainable development and address pressing global issues such as poverty, climate change, and inequality.

I would also see the potential of crowdfunding and impact investing to provide a way for marginalized communities to take an active role in shaping the economy and society. It empowers people to use their financial resources to promote causes and businesses that align with their values and beliefs, instead of being passive recipients of charity.

In summary, I would see the benefits of crowdfunding and impact investing as a way for individuals to use their financial resources to promote economic justice, sustainable development and empower marginalized communities to shape their own future.

It is difficult to predict exactly how regulated investment crowdfunding will evolve in 2023, as it depends on a variety of factors such as changes in the regulatory environment, technological developments, and market trends. However, here are a few potential developments that could shape the future of regulated investment crowdfunding:

1. Increased use of blockchain technology: Blockchain technology could potentially be used to streamline the crowdfunding process, making it faster and more secure.

2. Development of new regulatory frameworks: Governments around the world may develop new regulatory frameworks to address the unique challenges and opportunities presented by crowdfunding.

3. Growing popularity of alternative forms of financing: Crowdfunding may become more popular as an alternative to traditional forms of financing, such as bank loans or venture capital.

4. Increased competition: As crowdfunding becomes more popular, more platforms may enter the market, leading to increased competition among platforms.

5. Greater focus on investor protection: As the industry evolves, there may be a greater focus on protecting the interests of investors, including through the use of measures such as disclosure requirements and investor education.

Overall, it is likely that regulated investment crowdfunding will continue to grow and evolve in the coming years, with a focus on using technology to improve the efficiency and effectiveness of the process. 

*Written by OpenAI's ChatGPT* 

Thanks for the question. Quick disclaimer: this is just my own personal preference and experience, this is not to be construed as investment advice! Each investor has their own reasons and criteria when investing, so you need to determine what that looks like for you.

When personally picking a company to invest in, for me, it comes down to two primary things:

1. Does it match my investment thesis (e.g. my "why" for investing - whether it's a company I am passionate about, a market I think will be huge, a technology that I believe could change the world), and

2. Due diligence - e.g. are there any red flags? Are the deal terms fair? etc.

For point one: I recommend investors reflect on the reasons they are investing and what they want to achieve. Are you only looking to maximize financial returns? Do you care about social impact? Are you trying to support local small businesses? 

For point two: personally, I follow a "5 T's" approach to due diligence. Due diligence is a topic that could fill volumes by itself, but you can read more about due diligence in two articles I wrote and videos I made:

Due Diligence Part 1 - https://crowdwise.org/crowd-investing-101/due-diligence-101-overview-for-crowdfunding-investors-part-1/

Due Diligence Part 2 - https://crowdwise.org/crowd-investing-101/due-diligence-101-part-2-the-1-reason-why-startups-fail-and-how-to-screen-deals/

There are also services out there that will aggregate and review deals to help investors scale their due diligence, such as KingsCrowd (disclaimer: I am currently VP of Product at KingsCrowd).

And ultimately, you should always go to the campaign page and read all the details, including all deal terms. Another gem of information on these pages are the investor Q&A sections. You can not only post your own questions to be answered by the founder, but you can read other insightful questions from potential investors of all backgrounds. 

I always read the Q&A. You can learn a lot about the company and how they communicate and handle tough questions.

Happy investing!

Thanks!

Yes, you can solicit as to what terms people might find attractive, including valuation. I would generally include a disclaimer of some kind saying that just because something has been suggested it doesn't mean that will be reflected in the deal terms if you eventually make an offering.

Sara

Both valid comments, there are a few quick answers to make the severity of these problems perhaps less worrisome: 

1) the average investment in a successful crowdfunding campaign is only $96. So, the real risk vis a vis the founder's self-proclaimed valuation is not only mitigated by this average, but there are also caps on how much a retail investor can invest annually in crowdfunding. For instance, anyone earning under $107,000 annually, can only commit $2200 or so. 5% of their annual income. I'd say there are far more dangerous "investments" people make with far more predictably bad outcomes (hamburgers?).

2) as to how to know if other, potentially better, candidates for your money are making similar solutions available to investors, that's always hard to say, but I'd say you might reconcile "Caveat Emptor" dictates responsibility in both of these questions: "the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made."

So, do your homework. I mean, you' wouldn't buy a house sight-unseen without looking over the neighborhood, checking out the schools, etc.

Great questions. Keep em comin'

Glad to learn of your interest in regulated investment crowdfunding (#RIC).

Yes, there are a few upcoming events in the space ... 

SuperCrowd22 will include a Who's Who in regulated crowdfunding and will examine the intersection of crowdfunding and impact investing. It is a web-based event being co-hosted by the Crowdfunding Professional Association (CfPA), Brainsy, and many other impactful organizations September 15-16 (registration link is here: https://www.supercrowd22.com/httpssupercrowd22comtextandpercent20otherpercent20experts-register-joinpercent20thepercent20supercrowd ) For more info, follow up with Devin Thorpe

Equity Crowdfunding Week is another event that takes place a week later in person in LA (September 21-23) or online - https://www.startupstarter.co/ecw For more info, follow up with Etan Butler

Silicon Prairie Crowdfunding often hosts webinars on Wednesdays on various topics related to crowdfunding (for beginners to experienced hands) and you can see a list of their events at: https://www.meetup.com/silicon-prairie-fundraising For more info, follow up with David Duccini 

Stay tuned on the CfPA ECO as CfPA often hosts events or promotes the events of members organizations. 

Great question!

Impact crowdfunding is what is happening at the intersection of investment crowdfunding and impact investing.

As you know, investment crowdfunding was authorized by the bipartisan 2012 JOBS Act. It was initially implemented in 2016 with a $1 million cap, which was increased to $5 million last year. The space is mushrooming quickly.

Impact investing is less well known to our community but is a bigger global phenomenon dominated by wealthy families and institutions. They invest money for a financial return and a social mission. For instance, a venture capitalist backing Tesla in the early days would describe herself as an impact investor. She got a huge financial return and radically accelerated a transition to electric vehicles.

Investment crowdfunding allows for impact investing in the crowdfunding space. I call that impact crowdfunding.

SuperCrowd22 is a conference we're holding on September 15-16, 2022, to help everyone learn more about the space, both from an investor standpoint and from a social entrepreneur standpoint.

Don't miss it!

http://SuperCrowd22.com