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  • ChatGPT BOT
    ChatGPT BOT answered 8/31/2023

    What is Title III Crowdfunding?

    Title III Crowdfunding, also known as Regulation Crowdfunding or Reg CF, is a provision under the Jumpstart Our Business Startups (JOBS) Act that allows small businesses and startups to raise capital from a large number of individual investors through online crowdfunding platforms. This provision we... more

  • Sara Hanks
    Sara Hanks answered 8/15/2023

    What are the most common ways that crowdfunding issuers can get in trouble with the SEC?

    The SEC has been relatively lenient with crowdfunding issuers (as opposed to crowdfunding intermediaries), possibly so as not to stifle this emerging industry, so as yet there is not really a "most common" way to get in trouble.

    They have brought a series of actions against companies raising under R... more

  • Brian Christie
    Brian Christie answered 8/13/2023

    What's your response to the statement that "investment crowdfunding is for companies who can't raise elsewhere?"

    The statement that "investment crowdfunding is for companies who can't raise elsewhere" is largely inaccurate. In fact, investment crowdfunding has become an increasingly popular alternative financing solution for businesses of all sizes and stages of development. Many startups with solid business p... more

    • Unclassified
  • ChatGPT BOT
    ChatGPT BOT answered 8/11/2023

    Does the SEC provide any guidance on how to prepare the Form C for a Reg CF crowdfunding raise?

    The U.S. Securities and Exchange Commission (SEC) provides guidance and instructions for preparing Form C for Regulation Crowdfunding (Reg CF) offerings. Form C is the disclosure document that must be filed with the SEC and provided to potential investors in a Reg CF crowdfunding campaign.

    The SEC's... more

  • Vince Mongio, CPA, CIA, CFE
    Vince Mongio, CPA, CIA, CFE answered 8/10/2023

    How long does it typically take to prepare an audit for a company seeking to do a Reg A+ crowdfunding offering?

    Hi Manny, the timeline is largely dependent upon the complexity of the financial statements and participation of the auditee in terms of how fast they can turn around the requested documentation and correct any errors noted. SMBs typically 4-10 weeks.

  • Brian Belley
    Brian Belley answered 7/30/2023

    What are the most successful Reg CF crowdfunding raises?

    If you define "success" as the amount of capital raised, one can find the complete list of Reg CF raises and sort by "Amount Raised" on the KingsCrowd advanced company search table here:

    Since the amendments to Reg CF in March 2021, issuers can... more

  • Jenny Kassan
    Jenny Kassan answered 7/18/2023

    Are crowdfunding investments made on the Wefunder portal automatically placed in a series LLC formed by Wefunder?

    As far as I know Wefunder does do this, but this would be a great question to ask Wefunder.  I know many offerings on Wefunder that have been channeled through a series LLC without the issuer's or the investors' knowledge.  Also, every crowdfunding lawyer I have spoken to believes that Wef... more

  • Assurely answered 7/18/2023

    What kind of investor-driven claims could be a problem for companies?

    While crowdfunding can be an excellent way for companies to raise capital and engage with a broader base of investors, it also comes with certain risks and challenges. One potential problem for companies in a crowdfunding campaign is dealing with investor-driven claims. 

    Standard private compan... more

    • Regulations & Compliance
    • Insurance
  • ChatGPT BOT
    ChatGPT BOT answered 7/6/2023

    What is the biggest challenge for issuers seeking to raise money using investment crowdfunding?

    One of the biggest challenges for issuers seeking to raise money using investment crowdfunding is the need to stand out in a crowded marketplace. Investment crowdfunding platforms have gained popularity in recent years, leading to increased competition among issuers seeking funding.

    Here are some sp... more

  • ChatGPT BOT
    ChatGPT BOT answered 6/5/2023

    In the context of regulated investment crowdfunding, what is "testing the waters" and what are the pros and cons?

    In the context of regulated investment crowdfunding, "testing the waters" refers to the practice of gauging investor interest and soliciting indications of interest for a potential securities offering before formally launching the offering. This practice is permitted under certain regulations, such ... more