Regulation Crowdfunding (reg CF) enabled by the JOBS Act is an innovative fundraising model allowing early-stage companies to raise up to $5 million annually by selling securities to non-accredited investors. This crowdfunding approach offers compelling advantages over traditional financing.

The Power of Community Ownership

Unlike angel or VC investors, reg CF allows companies to tap into their own networks and brand advocates to become investors. This fosters community ownership rather than concentrated control.

Flexibility for Founders

Reg CF gives founders flexibility in finding backers aligned with their vision. Companies can market across multiple online platforms to reach a wide national audience and bring on hundreds of non-accredited investors. This reduces reliance on just a few large institutions.

Recent reg CF Successes

• In 2022, 3D printing startup Matterhackers raised $3.5 million from over 475 investors to expand production capacity.
• Lucid Sight, an NFT gaming firm, tapped into reg CF this year to raise $2.1 million from a pool of metaverse enthusiasts.
• Just months ago, alternative energy company Quidnet secured over $1.2 million in reg CF funding to support clean geothermal power.

Get Started with a Reg CF Raise

For early stage companies exploring reg CF, key steps include:

• Research portals to find the right fit
• Consult legal counsel to prepare regulatory filings and docs
• Build your campaign page and compelling pitch
• Market across channels to drive interest and investors
• Leverage portals’ outreach and events to expand your reach

Reg CF shifts financing power to founders while engaging brand advocates as investors.