Why do I care about Regulation Crowdfunding?
Regulation for crowdfunding is a set of rules that both companies and investors must follow. There are multiple types of crowdfunding regulation that a company may choose to raise under, and Regulation Crowdfunding is one of them. The guidelines set forth by Regulation Crowdfunding dictate what companies/investors can and cannot do when raising or investing under Regulation Crowdfunding.
Choosing Regulation Crowdfunding
As a company, choosing which regulation to follow for your fundraising campaign is critical in determining the rules you must follow as well as how much more of this blog post you must continue reading. For this reason, we felt the question of whether or not Regulation Crowdfunding could be right for you should be answered first.
Regulation Crowdfunding (Reg CF) is ideal for raising up to $5,000,000. This is the maximum amount you are able to raise within a 12-month period under Reg CF. Additionally, you are able to raise at nearly no up-front cost. Obviously, this means that if you need to raise more than $5,000,000, then Reg CF may not be for you. Luckily, Regulation A+ allows individuals to raise up to $50 Million. The catch is there are greater up-front costs associated with Regulation A+. Launching a Regulation A+ campaign can easily cost between $50,000 and $75,000 dollars due to the various requirements.
So, to sum up all of the information presented above, if you need to raise more than $5,000,000 then Reg CF is not right for you. If you only need to raise an amount less than or equal to $5,000,000, then continue reading to learn specifics about Reg CF.
How PicMii Fits Into Reg CF Campaigns
Each Reg CF offering is required to be conducted exclusively through a single online platform. The intermediary must be either a broker-dealer or a funding portal registered with the SEC. That’s where PicMii comes in!
PicMii is an online funding portal that allows companies to offer up equity in their business in return for capital. PicMii is not a broker-dealer, however, and with that comes certain restraints such as the inability to offer investment advice or solicit specific offerings. Most importantly, we are not able to directly handle investor funds. This is the reason why PicMii partners with an affiliated third party for investors to complete their purchases in securities and to hold investment funds in escrow.
Conducting a Reg CF Offering
Conducting an equity crowdfunding campaign has never been easier. Of course, there are still many steps involved, but the process is pretty simple! The easiest way to understand what is required of you as you conduct a Reg CF offering is to run through the entire process step-by-step.
Here To Help
Just like that, by following the steps laid out above, you will have successfully completed a round of crowdfunding and put your company in a position to succeed. At PicMii, we realize the process can get overwhelming at times, so we are here to help! We are happy to work with you and your company through the Reg CF process to ensure a successful and compliant crowdfunding campaign.