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  • Devin Thorpe
    Devin Thorpe answered 5/20/2022

    Good day, As a group of crowdfunding expertsI am hopeful you can steer me in the right direction. We are looking to crowdfund an Arizona permitted approved gold mining opportunity for $1,000,000, which is our immediate concern, and the next tranche would be for about...

    Jordan, this is a great question. Thanks for coming to the CfPA Ecosystem for insights.

    Of course, there is no industry or sector that can be thought of as traditionally raising money via crowdfunding. The industry is too new, implemented just six years ago and really gaining scale only in the past ... more

  • What is the role of the Financial Industry Regulatory Authority (FINRA) as it relates to investment crowdfunding?

    Good question. Title III of the JOBS Act established crowdfunding provisions that allow early-stage businesses to offer and sell securities. The SEC subsequently adopted Regulation Crowdfunding to implement the crowdfunding provisions of the JOBS Act. The role of the Financial Industry Regulatory Au... more

    • Unclassified
  • Sara Hanks
    Sara Hanks answered 2/5/2022

    What does it mean to fail the Howey test?

    It's not really a test that you pass or fail. The Howey test is just one of the tests used in securities law to determine whether an instrument being offered is a security or not. There are other tests that can also be used, such as the Reves test. Which should be applied depends, as the SEC says, o... more

  • Does Belle Business Services provide bookkeeping services and if so, how much does it usually cost for a typical start-up / small business?

    Hi! Thank you for your question. Yes, we do offer bookkeeping services for start ups and small businesses. We  typically charge $50/hour plus any costs incurred (ie: if you’re looking to have QuickBooks Online, we would bill you our cost). For most of our small start-ups, we can typically do th... more

    • Accounting
  • Brian Belley
    Brian Belley answered 12/11/2021

    Thought about taxes... I invest in 20 companies with $100/$250....15 go to zero. I hear I can't write it off on my taxes! Is this possible? Kurt

    I'm not a tax advisor, but you might want to look into Section 1244 losses and if you might qualify.

    At the very least, your losses should qualify as capital losses, similar to if you bought a stock and it wen... more

    • Unclassified
  • Brian Belley
    Brian Belley answered 12/11/2021

    i can't access my republic account.Something about authrecator code number.

    This means that you enabled Two Factor authentication (2FA) as an additional security measure for logging in to your account. You need the Google Authenticator app on your phone to get the 2FA coffee required to log in. 

    • Unclassified
  • Brian Belley
    Brian Belley answered 11/18/2021

    What are key differences between a Crowdfunding SAFE and a "Traditional" SAFE?

    For the complete answer we drafted to answer this, please read our complete blog post on Traditional SAFE vs. Crowdfunding SAFE.

    A brief summary of some of the key differences include:

    1. Crowdfunding SAFEs may have optional conversions: in some crowdfunding SAFEs (such as Republic’s Crowd Safe), sh... more

  • 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

  • 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

  • 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