Raise up to $5.0 million dollars

Regulation Crowdfunding ("Reg CF") became effective as of May 16, 2016, when the Securities Exchange Commission (the "SEC") issued new regulations under Section 4(a)(6) of the 1933 Securities Act that permit issuers to raise up to $5.0 million in any 12-month period, in either a debt or equity offering from any investor, up to certain per-investor limits. Reg CF represents a substantial departure from prior exemptions from registration, where Regulation CF permits an issuer to offer its securities to any investor, no matter their net worth or annual income, permitting a potentially much larger market of investors to participate in the most dynamic rounds of company financing, which had previously only been available to large institutions or wealthy investors. For an issuer, the ability to raise $5.0 million from a broad number of investors is a meaningful way to not only raise necessary start-up and early-growth stage financing, but also to build "buy-in" in the local community, where an Issuer's Reg CF investors would also double as its early customers and brand champions.

Reg CF offerings are excellent financing vehicles for the following enterprises:

• • Breweries

  • Niche-branded product companies (e.g. clothing brands, food products)

  • Cryptocurrencies

  • Franchises

  • Restaurants

  • Online Businesses

  • Outdoor adventure outfitters

  • Agribusiness

  • Real Estates

  • Transportation Businesses

  • Gas Stations

  • Technology Companies

The above is not an exhaustive list of businesses that are a good fit for Reg CF.

Reg CF offerings are eligible for exemption from the registration provisions of Section 12(g). Because Reg CF offerings can be structured to be exempt from Section 12(g), they avoid a large swathe of the onerous compliance requirements typically imposed on a company whose securities are offered to and held by the public. This is the best of both worlds for a start-up or early-stage high-growth business: access to public capital markets without the stifling compliance requirements of being a 1934 Act reporting company.

Contact us for a free consultation to discuss whether a Reg CF, or another one of our financing vehicles, may be an appropriate solution to financing your business.

Curious who else is using Reg CF to raise capital for their business? Review the latest Form C filings on the Securities and Exchange Commission's EDGAR database: