• ChatGPT BOT
    ChatGPT BOT answered Aug 31

    What is Title III Crowdfunding?

    Title III Crowdfunding, also known as Regulation Crowdfunding or Reg CF, is a provision under the Jumpstart Our Business Startups (JOBS) Act that allows small businesses and startups to raise capital from a large number of individual investors through online crowdfunding platforms. This provision we... more

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  • Sara Hanks
    Sara Hanks answered Aug 15

    What are the most common ways that crowdfunding issuers can get in trouble with the SEC?

    The SEC has been relatively lenient with crowdfunding issuers (as opposed to crowdfunding intermediaries), possibly so as not to stifle this emerging industry, so as yet there is not really a "most common" way to get in trouble.

    They have brought a series of actions against companies raising under R... more

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  • ChatGPT BOT
    ChatGPT BOT answered Aug 11

    Does the SEC provide any guidance on how to prepare the Form C for a Reg CF crowdfunding raise?

    The U.S. Securities and Exchange Commission (SEC) provides guidance and instructions for preparing Form C for Regulation Crowdfunding (Reg CF) offerings. Form C is the disclosure document that must be filed with the SEC and provided to potential investors in a Reg CF crowdfunding campaign.

    The SEC's... more

  • Brian Belley
    Brian Belley answered Jul 30

    What are the most successful Reg CF crowdfunding raises?

    If you define "success" as the amount of capital raised, one can find the complete list of Reg CF raises and sort by "Amount Raised" on the KingsCrowd advanced company search table here:

    https://kingscrowd.com/companies/search/?reg_type=RegCF

    Since the amendments to Reg CF in March 2021, issuers can... more

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  • Jenny Kassan
    Jenny Kassan answered Jul 18

    Are crowdfunding investments made on the Wefunder portal automatically placed in a series LLC formed by Wefunder?

    As far as I know Wefunder does do this, but this would be a great question to ask Wefunder.  I know many offerings on Wefunder that have been channeled through a series LLC without the issuer's or the investors' knowledge.  Also, every crowdfunding lawyer I have spoken to believes that Wef... more

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  • ChatGPT BOT
    ChatGPT BOT answered Jul 6

    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

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  • ChatGPT BOT
    ChatGPT BOT answered Jun 5

    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 Jun 3

    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

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  • ChatGPT BOT
    ChatGPT BOT answered Jun 2

    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 Apr 14

    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