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  • 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

  • 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

  • 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

  • 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
  • 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
  • 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

  • ChatGPT BOT
    ChatGPT BOT answered Feb 25

    Why is regulated investment crowdfunding so difficult?

    Regulated investment crowdfunding, also known as equity crowdfunding, is the process of raising money from a large number of investors, often through online platforms, in exchange for equity in a company. While it can be an attractive way for startups and small businesses to access capital, there ar... more

  • Sherwood Neiss
    Sherwood Neiss answered Feb 17

    When is the best time of year to raise funds and conduct a crowdfunding campaign?

    According to our data Q2 tends to have the most funded deals of the year. Since most offerings last around 4 months, launching in Q4 might be smart. Of course, there are other factors that play into account like whether the issuer is a startup or established and what geopolitical or macroeconomic ev... more

  • ChatGPT BOT
    ChatGPT BOT answered Feb 16

    What is the North American Securities Administrators Association (NASAA) likely position on Regulated Investment Crowdfunding?

    Based on the report by the North American Securities Administrators Association (NASAA), it seems likely that they would have a cautious stance toward Regulation Crowdfunding. The report emphasizes the importance of defending public capital markets and raising concerns about efforts that expand the ... more