REGULATION CF (CROWDFUNDING) OFFERINGS

THIS PAGE IS A DETAILED DISCUSSION OF CROWDFUNDING (REGULATION CF) OFFERINGS.  I AM AN ATTORNEY, FORMER SECURITIES REGULATOR, AND HAVE OVER 20 YEARS EXPERIENCE WITH PRIVATE OFFERINGS.  CALL ME, AUSTIN ALLEN AT 214-799-2000, FOR A FREE CONSULTATION.

The process for a Crowdfunding (Reg. CF) offering is:

- FIRST, we determine the best type of offering for you in your FREE CONSULTATION;

- Then, after I receive payment, the next step is the preparation of an offering document that describes the following:
- HOW MUCH AND HOW OFFERED - we determine the total amount to be raised, and whether it is debt, equity, or a combination; and we determine how the total amount is offered (units, shares, notes, warrants, etc.);

- THE PURPOSE AND THE RISKS - we describe in detail why you are raising the money, the plan for using it; and what are the risks for the offering and that industry, and other current business risks (shortages, pandemics, etc.); 

- POTENTIAL RETURNS - we determine the potential returns for the participants and the timing of the returns;

- OTHER INFORMATION - like how long you will be raising the money, the prior experience and performance of the management and the offering issuer (if any), relevant legal and other disclosures, and tax considerations; and

- LIST ON A PORTAL - we determine what registered crowdfunding portal we will be offering through and review their terms of service and requirements.

Crowdfunding (Reg. CF) offerings are generally the most expensive private offering because they can have the most regulation.  Prices range from my reviewing your already prepared Form C (usually 2-3 hours, approximately $700 - $1,000), to preparing all of your offering documents (including the Executive Summary) and reviewing the service agreement and terms with the funding portal, all of which can be over $8,000.   I can work on an hourly basis ($350/hr) or for an all inclusive flat fee.  I can usually have a Form C done in a week or less.

Because if the issuer or a person important to the offering (a "covered person") has been convicted of, or are subject to court or administrative sanctions for securities fraud or other violations of specified laws BEFORE that date, then the item must be disclosed but the offering can continue; HOWEVER, if the item happened AFTER that date, then the issuer and/or covered person CANNOT use this securities exemption and the offering CANNOT go forward.

Generally, you can if have not been convicted of, or are subject to court or administrative sanctions for securities fraud or other violations of specified laws; or if you have, the item happened before September 23, 2013.  

There is a $5,000,000 limit over a 12 month period limit on the amount you can raise in a Reg. CF offering. 

An unlimited number of both Accredited and Unaccredited Investors can invest BUT there are investment amount limits based on an investor's income and net worth.  Some clients have simultaneous Rule 506(c) and Crowdfunding (Reg. CF) offerings because both types of these offerings allow general solicitation, and have Accredited Investors participate through the Rule 506(c) offering to manage the investment amount limits in Reg. CF.  

Yes, general solicitation is allowed BUT all communications must go through the funding portal.