Regulation CF Offerings

Reg CF Campaign Launch


At jobsactlawyer….

We have ground floor experience with the JOBS Act exemptions and  support our clients through the whole process of a Regulation Crowdfunding offering – from selecting your company’s funding portal to conducting the Reg CF offering in compliance with securities regulations and other US federal and state laws. We leverage our understanding of The Jobs Act, experience with Regulation Crowdfunding, and relationships with funding portals, accountants and other helpful service providers to quickly and effectively bring your campaign to launch.

We also provide insights to our clients on appropriate structures and the ramifications of choosing different security structures for your seed round – whether they are convertible notes, SAFEs, common stock, preferred stock, KISS, Series Seed or other commonly selected securities in Reg CF offerings.

 For a consultation about structuring a Regulation Crowdfunding offering in the US please contact Sosnow PLLC by sending us an email or calling us at 917.969.2147.

What is Regulation Crowdfunding?

Regulation Crowdfunding is a securities exemption that allows privately-owned companies in the US to raise capital from investors with limited marketing restrictions. Under this exemption, issuers can:

  • Leverage your funding portal’s network and marketing activities

  • Utilize social media to promote your campaign

  • Openly pitch your fundraising effort at events

  • Experience simplified investor on boarding with the help of your fundraising portal

  • Accept investments from both accredited investors and non-accredited investors

The Limitations of Regulation Crowdfunding

 While equity crowdfunding is being adopted as a viable method of raising capital in the US, this exemption does have its limitations and is not well-suited for all businesses. Some of the most practical considerations include:

  • Maximum offering amount of $1,070,000 per year under Reg CF

  • Requirement to list the offering with a SEC and Finra registered ‘funding portal’

  • Number of investors limits under the Exchange Act

  • Non-accredited investor investment limits

Our Firm Provides Guidance at Every Stage of your Equity Crowdfunding Campaign

While there are risks associated with raising capital under any exemption, our firm understands and has experience handling these concerns. We help our clients through every stage of the equity crowdfunding process including:

  • Working with you to choose service providers best suited for your company and goals, including:

    • Portal Selection

    • Accountant Selection

    • Marketing Support

    • Cap Table Management

    • Transfer Agent Services

  • Guidance on offering structure, including security type and its terms

  • Compliance with Regulation Crowdfunding in your offering materials, during your campaign, and after your campaign ends

  • Working with you on a side-by-side offering under Regulation D if you are seeking to raise more than $1,070,000

  • Drafting and filing your Form C with the SEC, Form C-A, Form C-U

  • Drafting and filing your annual report (Form C-AR)

  • Providing post-campaign support, including advising our clients on future financing rounds, conversion of convertible securities, best practices in investor relations management, secondary trading issues and other matters.

For more information on Regulation Crowdfunding, check out our issuer FAQs here.