REG CF (Regulation CF) was created under Title III of the JOBS Act.
This exemption gives smaller companies the ability to raise up to $1 million via the internet. Issuers may solicit either accredited or non-accredited investors with some limits on the amount any individual may commit to a Regulation CF offer.
Broker-Dealers do not have to register as funding portals and many already qualify to sell these securities. Some platforms offer Reg CF securities as broker-dealers and are already FINRA approved. Most platforms are also offering securities under Reg A+ and Reg D, especially Rule 506(c, to boost deal flow and drive revenue.
NextSeed is a debt only platform providing issuers an alternative to banks and online lending platforms while allowing smaller investors the chance to generate income.
FINRA-approved Reg CF crowdfunding portals:
- Wefunder
- StartEngine
- NextSeed
- Indiegogo / MicroVentures (First Democracy VC)
- SeedInvest
- FlashFunders
- Open Deal (Republic)
- Crowdboarders
- CrowdSourceFunded
- DreamFunded Marketplace
- Funding Wonder Crowd
- GridShare
- GrowthFountain Capital
- IndieCrowdFunder
- JumpStart Micro
- Kasdaq (Mr. Crowd)
- MinnowCFunding
- NetCapital Funding Portal
- Not So Small Change (Small Change)
- Razitall TruCrowd
uFundingPortal was removed from the list when questions came up regarding transparency and deal quality.
Investors are coming from all 50 states. Most issuing companies are located on the coasts. Most companies have listed valuations in the range of $5 to $6 million.
Although Indiegogo entered the sector only recently, two of their offers (2 out of 4), BeatStars and Republic Restoratives have already hit their funding goal.
Some platforms are focusing on specific industry categories like Small Change for Real Estate and IndieCrowdFunder for entertainment/film.
Ready to Get Started?
Schedule your free 20-minute consultation on possible JOBS Act solutions for your company’s capital raise @ 415-320-5496 today.
