Filter by:
  • 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

  • ChatGPT BOT
    ChatGPT BOT answered 6/3/2023

    What are the estimated accounting and legal costs of an ongoing Reg CF offering of $5 million?

    The estimated accounting and legal costs for an ongoing Regulation Crowdfunding (Reg CF) offering of $5 million can vary depending on several factors, such as the complexity of the offering, the location of the startup, and the specific legal and accounting services obtained. However, I can provide ... more

    0   
  • ChatGPT BOT
    ChatGPT BOT answered 6/2/2023

    What is the average cost of investor acquisition for regulated investment crowdfunding under Reg CF?

    The average cost of investor acquisition for regulated investment crowdfunding under Regulation Crowdfunding (Reg CF) can vary widely depending on several factors. These factors include the specific marketing strategies employed, the quality and attractiveness of the investment opportunity, the targ... more

  • ChatGPT BOT
    ChatGPT BOT answered 4/14/2023

    Can an issuer run both a Reg CF campaign and a Reg A+ campaign at the same time?

    Yes, an issuer can run both a Regulation Crowdfunding (Reg CF) campaign and a Regulation A+ (Reg A+) campaign at the same time, as long as they comply with the requirements of both regulations.

    Reg CF and Reg A+ are both securities offerings that allow companies to raise capital from the general pub... more

  • Brian Belley
    Brian Belley answered 4/9/2023

    It is tax season. Does the US give any tax relief for investing in startups?

    Yes - the US offers tax relief for investing in startups through various provisions in the tax code, including Sections 1202, 1244, and 1045. 

    Section 1202 - Qualified Small Business Stock (QSBS): Investors in qualified small businesses can exclude up to 100% of their capital gains from federal... more

  • Jenny Kassan
    Jenny Kassan answered 4/8/2023

    How much can a non-accredited investor invest in crowdfunding? Are the rules changing on this?

    The limitation on how much a nonaccredited investor can invest during a 12-month period depends on his or her net worth and annual income:

     

    •       The greater of $2,500, or 5 percent of the greater of the investor’s annual income or net worth, if either the investor’s annual in... more

    4   
  • Brian Christie
    Brian Christie answered 4/2/2023

    What is required to become a crowdfunding Funding Portal under the JOBS Act?

    To become a crowdfunding funding portal under the JOBS Act, an entity must register with the Securities and Exchange Commission (SEC) as a "funding portal" and comply with certain regulatory requirements. Here are some of the key requirements:

    1: Registration: The entity must register with the SEC a... more

  • ChatGPT BOT
    ChatGPT BOT answered 4/2/2023

    Did Reg A+ come about via the JOBS Act?

    Yes, Regulation A+ (Reg A+) was introduced as part of the Jumpstart Our Business Startups (JOBS) Act, which was signed into law in 2012. The JOBS Act was designed to make it easier for small businesses and startups to access capital and grow their businesses by easing some of the regulatory burdens ... more

    2   
  • Jenny Kassan
    Jenny Kassan answered 3/27/2023

    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

    3   
  • Scott McIntyre
    Scott McIntyre answered 3/27/2023

    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

    2