If your company is looking to raise funding, you may want to consider Reg D crowdfunding as all or part of your financing strategy. Learn more about Regulation D below.
Reg D Crowdfunding: What Is It?
Regulation D is a type of financing method that allows a company to raise capital through the solicitation of relatively small investments or larger contributions from many people. If a company wants to offer securities through Reg D crowdfunding they must meet the requirements of federal securities laws. This means that the offer or sale of a security must be registered with the Securities and Exchange Commission (SEC) or has to meet an exemption. The exemption related to crowdfunding is that a company can offer up to $5 million of its securities without filing the offering to the SEC.
Advantages of Crowdfunding
The advantages of crowdfunding include the fact that any individual investor can invest into a company. Many individuals can pool their resources together in order to support a company or venture. A company is allowed to use various types of media to promote the crowdfunding to alert potential investors to it, including brochures, social media, posters, press releases, and more.
If you utilize these ways to advertise your crowdfunding initiative, you can have an advantage over the companies not utilizing Rule 506(c) to raise capital through crowdfunding because you will have a potentially greater reach to investors you have no connection with to potentially invest in your company or venture.
EquityTrack provides Reg D crowdfunding and other industry-leading capital raising services for both private and public companies. See how we can help your business raise needed capital at https://www.equitytrack.co/.
