Good question. No one can answer this question with certainty -- but there are some attributes that could help make your company a good fit.

First, if your company has a compelling story, a clear growth plan, and a product or mission that everyday people can understand or get excited about, then yes - you're likely a good fit for investment crowdfunding. This approach works especially well for consumer-facing brands, mission-driven companies, or startups with a passionate community. Local businesses, life sciences ventures, and companies working in climate, health, or other high-impact sectors also tend to resonate with the crowd. Importantly, your company doesn’t need to be wildly profitable yet - but you do need to show traction, credibility, and a vision that compels public participation.

Second, it takes a lot of effort to attract investors to your offering. Intermediaries (portals) are order takers and are prohibited from soliciting investors to your deal. You can solicit investors -- but the portals cannot. Therefore, we recommend that companies dedicate a budget for investor acquisition (e.g. set aside $500k if you’re trying to raise $5M). We know -- it may sound strange to think of spending money to raise money but many successful issuers seem to have figured this out.  

A key benefit of regulated crowdfunding (like Regulation Crowdfunding or Reg A+) is that it allows you to turn your customers, fans, and stakeholders into investors. That means you can raise capital while also building loyalty and brand evangelism. However, you’ll need a well-prepared campaign, good marketing support, and the willingness to comply with SEC disclosure rules.  If your company is open to transparency and ready to engage a broad audience, investment crowdfunding can be a powerful capital-raising tool and a way to stand out in a crowded market.

At CHI, we provide white-glove service for issuers that want to use crowdfunding. Contact us if you’d like to learn more. info [ at ] crowdfund [dot] holdings