Crowdfunding Offerings

Many companies that aim to raise capital, use crowdfunding as an alternative to traditional funding. In securities-based crowdfunding, companies pool money from a large number of investors. This is a common way for them to jumpstart their capital formation on the internet through crowdfunding portals. Today, crowdfunding continues to increase in popularity, as a growing multiple billion-dollar industry.

Engaging in equity crowdfunding requires the use of a funding portal registered with the SEC and FINRA.  The crowdfunding process involves three main steps:

  • Coming up with an innovative idea
  • Bringing that idea to life through a product or service
  • Modeling the product in an engaging way that acts as an investor pitch to increase your audience

Marketing the product is vital to ensure that all the work you put into creating and developing it pays off by attracting interested, dedicated, and passionate investors. Further, it can be incredibly difficult to effectively create, develop, and persuasively advertise a service or product, as each of these steps require different specialized skills. Issuer Consulting, as your crowdfunding consulting firm, will ease your burden by guiding you through the process of executing a successful offering and connecting you with the best funding portal to fit your needs.

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Why Issuer Consulting?

Crowdfunding offerings require a larger number of investors to be successful as the individual investment dollar amount is typically lower than traditional offerings.  Issuer Consulting offers consulting services, helping you plan and market your offering to maximize your offering sale amount.

Our services include:

  • Devising advertising strategies to strengthen the appeal of your crowdfunding offering
  • Developing a persuasive investor pitch that will gain the attention of a wide variety of investors
  • Ensuring your familiarity with the rules of Regulation Crowdfunding (CF) offerings
  • Helping you navigate the SEC-registered crowdfunding portals so you can effectively conduct your offering
  • Partnering you with accountants that will provide you with realistic capital projections
  • Partnering you with securities attorneys that will help you complete the necessary financial documents to conduct a Reg CF offering (Form C, Form C-AR, Form C-U)
  • Crafting a timeline based on your offering to ensure you raise funds quickly and efficiently

Facilitate Compliance with the SEC

We will guide you to an attorney that can help you fill out the required forms to engage in crowdfunding offerings (Reg A+, Reg CF, Reg D)

Help You Craft A Plan

We will outline your goals for the offering ensuring you raise capital efficiently

Prepare You and Your Company

We will help you devise advertising strategies and an investor pitch to engage your audience effectively

Reg CF Offering

The Jumpstart Our Business Startups (JOBS) Act of 2012 allows small companies to raise capital through crowdfunding while being exempt from the SEC’s regulations. Title III applies to companies that raise under $1,070,000 per year. The only caveat is that these offerings must be made through online crowdfunding portals or websites approved by the SEC. Offerings conducted under the requirements of Title III are known as Reg CF offerings.

Reg A+ Offering

Another common offerings that provide exemptions to SEC rules is Reg A+. Reg A+ offerings allow private companies to raise no more than 50 million dollars. These offerings split into two tiers; Tier 1 includes companies that raise up to $20 million per year. Tier 2 includes companies that raise up to $50 million per year. Further, companies under both tiers are not required to officially register their securities with the SEC, other than through Form 1-A. However, they must abide by other specific requirements to qualify for the offering. Tier 1 offerings are subject to local Blue Sky laws, whereas Tier 2 offerings are not except for in a few states. Lastly, Reg A+ offerings allow an unlimited amount of investors.

Regulation D Offering and Rule 506(c)

Regulation D, unlike Reg A+, is an offering that limits the amount of unaccredited investors to 35. It provides an exemption from SEC requirements as well, after the company files a Form D. Further, issuers may choose to file under Rule 506(c) of Regulation D. This rule maintains that if the company ensures that every investor participating in the offering is an accredited investor, the SEC will permit general solicitation of the offering. In other words, all participants may advertise the offering through any medium: flyers, posters, online, etc. This additional advertisement can greatly enhance capital formation while increasing publicity.

Contact Issuer Consulting today!