Filter by:
  • Jenny Kassan
    Jenny Kassan answered 11/17/2021

    What reporting requirements do issuers have to their crowdfunding investors AFTER they've completed a financing?

    The issuer must post on its website an annual report along with its financial statements certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer. 

    If, however, an issuer has available ... more

    • Regulations & Compliance
    • Law & Legal
  • Sara Hanks
    Sara Hanks answered 10/8/2021

    Can a crowdfunding portal "curate" opportunities or must they accept any company willing to list on their portal?

    A platform can set parameters for the type of company and offering it will accept. And then it can (indeed, must) deny access if it believes there is potential for fraud or if the issuer has not complied with the regs. Put those together and most platforms have the ability to filter out the types of... more

    • Regulations & Compliance
    • Funding Portals
  • Who does the Crowdfunding Professional Association (CfPA) represent in the industry?

    The CfPA represents a range of stakeholders in the crowdfunding industry including investors, issuers, intermediaries (/crowdfunding portals), and the growing community of service providers (e.g. accountants, lawyers, analytics firms, marketing and communications firms).

    In order for the industry to... more

    • Unclassified
  • Sherwood Neiss
    Sherwood Neiss answered 8/16/2021

    What kind of data and analytics is available in the crowdfunding industry?

    Hi. We've been collecting data on Regulation Crowdfunding since the launch of the industry in May, 2016. As of last year, this data is being transmitted daily to Bloomberg for industry analysis and investment opportunities. Our dataset is the most comprehensive one out there and covers all current a... more

    • Education & Training
    • Media & Publication
    • Big Data
  • Jenny Kassan
    Jenny Kassan answered 8/14/2021

    Hello, I am TRAORÉ ADAMA. I tried to submit my project for crowdfunding participation funding. But I'm told I must fill out Form C. I don't know what it is. And I would like someone to guide me and help me complete this form. I really care about the project. Thank you!

    Hello!  The Form C is the disclosure information that needs to be filed with the Securities and Exchange Commission before you can launch a campaign under Regulation Crowdfunding.  Lawyers generally charge $5-10,000 to prepare it. 

    • Unclassified
  • Sara Hanks
    Sara Hanks answered 8/1/2021

    While the regulations clearly state that an issuer can't conduct a Reg CF offering on multiple funding portals simultaneously, is there anything that would prevent a potential issuer from running a Testing the Waters campaign on multiple funding portals at the same time?

    Nothing in the rules prevents it although platforms could impose their own contractual requirements (eg, if you use our platform for TTW you have to use us for the actual offering).

    BTW, the SEC were not actually expecting that TTW would happen on platforms! They thought TTW would be on social media... more

    • Regulations & Compliance
    • Funding Portals
    • Law & Legal
  • Eve Picker
    Eve Picker answered 7/24/2021

    For Funding Portals, who offers the best insurance? Meaning liability insurance for funding portals. Thank you!

    I've worked with Monica Minkel of Holmes Murphy for years. She does the best she can for us given the very difficult insurance market for crowdfunding platforms which are considered high risk (and hence the insurance is expensive). Monica is very familiar with the crowdfunding insurance market. ... more

    • Unclassified
  • Samson Williams
    Samson Williams answered 7/21/2021

    I would like to know if there is any other distinctive crowdfunding model other than the four basic crowdfunding models that include donation-based, reward-based, equity-based, and debt-based models? Excluding the hybrid, of course.

    Hello Kiko, 

    There is also revenue-sharing and royalty crowdfunding. Those two are similar but each has its own nuance depending on how you structure your unique deal. 

    Just keep two things in mind: 

    1. Investors will want good investment terms 

    2. Crowdfunding doesn't actually r... more

    • Equity (RIC)
    • P2P Lending
    • Rewards & Donation
    • Education & Training
    • Small Business Finance
  • What are the accounting requirements for a crowdfunding campaign?

    The SEC requires GAAP based financial statements. Depending on the amount you want to raise, the requirements could be anything from self-prepared, GAAP based financials, all the way up to an audited set of financials. Reviewed financials are required if you want to raise up to $1,070,000. Anything ... more

    • Accounting
  • Scott McIntyre
    Scott McIntyre answered 6/14/2021

    I am on a budget setting up my license crowd Funding portal with the FINRA/ SEC. I have completed everything and just need to send me finger print. is there a checklist for the thing i need to do so i can do everything properly and know my roadmap. is it hard to change the na

    I'm sorry, but I'm not a platform expert and can't help you with those questions. But congratulations on your hard work and I hope you find success shortly. One of the benefits of joining the CfPA is access to our thought leaders, and also referral to qualified professionals who could answer your qu... more

    • Unclassified