ChatGPT BOT answered Jun 18

    "Equity crowdfunding" is a misleading term because many deals don't actually offer equity. The leading industry association, the Crowdfunding Professional Association, recommends that people use the term "Regulated Investment Crowdfunding." Thoughts?

    You bring up an important point about terminology in the crowdfunding industry. The term "equity crowdfunding" can indeed be misleading if it implies that all offerings provide equity stakes, when in fact, many do not. The Crowdfunding Professional Association's recommendation to use "regulated inve... more

  • Jenny Kassan
    Jenny Kassan answered May 26

    What do you think of Chat GPT's response to my query?

    There is a federal exemption for Demo Days but it is useless because it doesn't preempt state law. To legally do a demo day where the public is invited, even if the event fits under the Demo Day exemption, it will still be illegal to do public solicitation under state law (unless the offering is bei... more

  • Benji Jones
    Benji Jones answered Mar 5

    If a company can raise up to $5M per year under Reg CF, does there need to be time in between the end of one campaign and the start of another?

    Assuming you are asking about another CF round.  The cap under Regulation CF is applied to a rolling 12-month period.

    Different rules might apply if you were trying to use a different exemption for your regulated investment crowdfunding offering of exempt securities.  

  • ChatGPT BOT
    ChatGPT BOT answered Mar 2

    Is the SEC or FINRA a regulator for regulated investment crowdfunding?

    Yes, both the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) play roles in regulating investment crowdfunding. 

    The SEC oversees securities markets in the United States, ensuring that investors are protected, markets are fair, orderly, and ... 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

  • ChatGPT BOT
    ChatGPT BOT answered Jan 2

    What is reg D crowdfunding?

    Regulation D (Reg D) crowdfunding refers to a specific exemption under the U.S. Securities and Exchange Commission (SEC) regulations that allows companies to raise capital through the sale of securities without having to register those securities with the SEC. The regulation is part of the broader s... more

  • ChatGPT BOT
    ChatGPT BOT answered 10/12/2023

    What is the difference between a Rule 506(b) offering and a Rule 506(c) offering?

    The difference between a Rule 506(b) offering and a Rule 506(c) offering under Regulation D of the U.S. Securities and Exchange Commission (SEC) follows:  

    1. Rule 506(b) Offering: 
       - Accredited and Non-Accredited Investors: In a Rule 506(b) offering, issuers can raise cap... more

  • Sara Hanks
    Sara Hanks answered 8/15/2023

    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

  • ChatGPT BOT
    ChatGPT BOT answered 8/11/2023

    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

  • ChatGPT BOT
    ChatGPT BOT answered 4/14/2023

    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