For the first time (as of March 2021) it is legal for accredited investors with no limits and, often, a higher experience level and tolerance to what are inevitably higher risk investments to participate alongside of the social capital investors (friends, family, followers) of the entrepreneur who are convinced it’s a worthy enterprise. These investors feel more confident with institutional or sophisticated investors joining in and demonstrate the marketability (often they are or will be customers of the product or service) of the enterprise.
The regulations for what is called Regulation Crowdfunding is that the investment must occur on a FINRA regulated platform where investors have a potential, through arbitration of some redress of problem issues where otherwise they would be able to engage only with the issuer in a normal private equity transaction. Those same regulations require above a $500k raise amount, fully audited financials. This is another confidence builder in the due diligence process and, again, a rarity in the kind of startup private equity transactions these investors are otherwise accustomed to. We offer even more on why our RegCF Plus process is a great benefit to investors in our white paper which you can read here.
We welcome a conversation on exactly how this will work for you. Please provide your contact information below so that we might discuss what’s most important to you and how we can tailor a solution to help you achieve it.