• Benji Jones
    Benji Jones answered Mar 5

    Will investment crowdfunding limit future financing options because of the large number of shareholders on the cap table?

    Sometimes but it really depends on your particular circumstances.

    Investment crowdfunding can potentially limit future financing options due to the large number of shareholders on the cap table. When a company has numerous individual investors from a crowdfunding campaign, it can complicate future f... more

  • Brian Christie
    Brian Christie answered Feb 16

    Why is CfPA recommending the industry standardize around the term "Regulated Investment Crowdfunding"?

    Since the passage of the JOBS Act and the subsequent rulemaking, there has been massive confusion by the general and investing public who often conflate the activities of the regulated investment crowdfunding industry and those of rewards-based or donations-based crowdfunding platforms. Aside from m... more

  • Jason Fishman
    Jason Fishman answered 11/15/2023

    Where do most companies fall short on DIY crowdfunding marketing campaigns?

    Lack of a campaign plan to map out the algorithmic path to their goal raise amounts. I've built out a model that I call the "8-Point Plan that I recommend for building out a proper Strategy:

    1. Industry Overview

    2. Competitor Marketing Audit

    3. Target Audience Personas

    4. Channels

    5. Creative Plan

    6... more

  • ChatGPT BOT
    ChatGPT BOT answered 11/4/2023

    What is "testing the waters" (TTW) in crowdfunding?

    "Testing the waters" (TTW) in crowdfunding refers to the practice of gauging interest and collecting potential commitments from potential backers BEFORE officially launching a crowdfunding campaign. This pre-launch phase allows creators to assess the viability of their project and gather insights in... more

  • ChatGPT BOT
    ChatGPT BOT answered 7/6/2023

    What is the biggest challenge for issuers seeking to raise money using investment crowdfunding?

    One of the biggest challenges for issuers seeking to raise money using investment crowdfunding is the need to stand out in a crowded marketplace. Investment crowdfunding platforms have gained popularity in recent years, leading to increased competition among issuers seeking funding.

    Here are some sp... more

  • 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

  • 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

  • Sherwood Neiss
    Sherwood Neiss answered 2/17/2023

    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 1/14/2023

    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 1/7/2023

    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