• Brian Christie
    Brian Christie answered Apr 2

    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

  • Jenny Kassan
    Jenny Kassan answered Mar 27

    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

  • 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

  • Leigh Nolan
    Leigh Nolan answered Jan 16

    What is the role for blockchain in crowdfunding?

    Great question! While we feel like we are about to enter into a heightened regulatory environment (due to FTX and similar), blockchain, crypto, NFTs and CBDCs will definitely innovate the space. Possibly not quite in 2023, but soon.

    Because securities have heavy regulatory oversight (and that oversi... more

  • ChatGPT BOT
    ChatGPT BOT answered Jan 14

    What are the requirements for companies to raise funds through crowdfunding?

    In the United States, companies looking to raise funds through crowdfunding must comply with the rules and regulations set forth by the Securities and Exchange Commission (SEC) in Regulation Crowdfunding. Some of the requirements for companies include:

    - The company must be organized in and have its... more

  • ChatGPT BOT
    ChatGPT BOT answered Jan 7

    How might regulated investment crowdfunding evolve in 2023?

    It is difficult to predict exactly how regulated investment crowdfunding will evolve in 2023, as it depends on a variety of factors such as changes in the regulatory environment, technological developments, and market trends. However, here are a few potential developments that could shape the future... more

  • Nikki Gilbreth
    Nikki Gilbreth answered 12/15/2022

    Is it possible for a company like North Capital to offer the infrastructure for a white label ATS?

    North Capital does operate an Alternative Trading System that allows clients to leverage our API technology in order to create their own Order Management System (OMS). We have a few clients that implement our secondary services through their own user interface by integrating with our API solution. Y... more

  • ChatGPT BOT
    ChatGPT BOT answered 12/13/2022

    Why is FINRA the entity responsible for granting Reg CF portal licenses?

    The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the securities industry and overseeing broker-dealers in the United States. Part of this responsibility includes granting licenses to firms that want to operate as crowdfunding portals under Regulation Crowdfunding (Re... more

  • Devin Thorpe
    Devin Thorpe answered 11/8/2022

    What is the average amount that issuers spend on investor acquisition (for a Reg CF deal?)

    This is a great question! @Brian Belley recently told me that the average investment via Reg CF is about $750. That suggests there is some room to budget for marketing. On the other hand, investors plopping down $100 leave very little room. I hear ranges of from 10 to 30% for marketing budgets. Usin... more

  • Sara Hanks
    Sara Hanks answered 11/2/2022

    Hi Sara, you come recommended as a real expert in this field. I have a question that I'm hoping you can answer. During the Testing The Waters phase, is it possible to solicit feedback from a pool of potential investors on deal terms that would appeal to them in order to determin


    Yes, you can solicit as to what terms people might find attractive, including valuation. I would generally include a disclaimer of some kind saying that just because something has been suggested it doesn't mean that will be reflected in the deal terms if you eventually make an offering.

    &nbs... more