⚖️ Understanding Reg CF

Author

Liam Gill
September 03, 2024

Practical Information - Launching a Reg CF Crowdfunding Campaign for Your Startup

Regulation Crowdfunding (Reg CF) allows startups to raise capital from the general public through online platforms. To launch a Reg CF raise, the first step is to choose a crowdfunding portal that is registered with the SEC and FINRA, as only these platforms are authorized to host Reg CF offerings. Once you’ve selected a platform, you’ll need to prepare your offering materials, which include a detailed description of your business, the amount you intend to raise, how the funds will be used, and the terms of the securities being offered. You’ll also need to provide financial statements, which for larger raises, may require review by an independent accountant.

Don’t trust the polls, trust the markets.

Polymarket is the world's largest prediction market. With markets covering politics, news, culture, and tech. See real-time, accurate, and unbiased 2024 election forecasts.

Legal Requirements and Compliance

Legal compliance is critical in a Reg CF raise. You must file Form C with the SEC, which provides important information about your company and the offering. This includes details about your business, the management team, and any related-party transactions. The offering must also comply with anti-fraud provisions, which means all information presented to potential investors must be truthful and not misleading. Additionally, there are limits on how much an individual can invest in a Reg CF offering, based on their income and net worth, which must be adhered to by the crowdfunding platform. Ongoing disclosure requirements apply once the campaign is live, and you must regularly update the platform and investors on the progress of the raise.

Get your software delivered on time, within budget, achieving your goals

With ELEKS' product-oriented delivery, we ensure that your vision is realised with superior software that meets your strategic goals. We take full responsibility for your project's success and focus on maximising your product's business value.

Managing the Campaign and Post-Raise Obligations

During the campaign, it’s crucial to engage with potential investors, providing updates and answering questions through the platform. Transparency and communication are key to building investor trust and achieving your fundraising goal. Once the raise is complete, you’ll need to file an annual report with the SEC, detailing the company’s financial status and business operations. This report must be made available to your investors and the public through your chosen platform. Additionally, maintaining good investor relations post-raise is important, as it could lead to further investment opportunities down the line. Remember, while Reg CF is a great way to raise capital from a broad audience, it comes with significant legal obligations that must be carefully managed to ensure long-term success.

Learn how to launch and grow an affiliate program for SaaS:

  • Principle 1: Make it simple for affiliates to earn money

  • Principle 2: Run your program like a professional

  • Principle 3: Build an affiliate recruitment system

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Get value stock insights free.

PayPal, Disney, and Nike recently dropped 50-80%.

  • Are they undervalued?

  • Can they recover?

  • Read Value Investor Daily to find out.

We read hundreds of value stock ideas daily and send you the best.