Understand the idea.
Understand the risk.

What is Regulation Crowdfunding?

Regulation Crowdfunding permits eligible companies to offer securities through a registered intermediary under specific limits and disclosure requirements. It is a securities offering, and investors may lose money.

What to understand before investing

• Loss: You could lose your entire investment. Young companies may fail or need further funding.
• Liquidity: You may be unable to sell when you want. Transfer restrictions and the absence of a resale market can limit your options.
• Information: Disclosures and financial statements may provide less information than those available for public companies.
• Dilution and rights: Later financings can dilute your position. Voting, payment and conversion rights depend on the security’s terms.
• Returns: A successful company does not guarantee a payment, resale opportunity or return for every investor.

Read the actual offering documents

Before any real commitment, review the issuer’s Form C, financial statements, risk factors, use of proceeds, security terms, target amount and deadline. Understand applicable investment limits and the differences between an issuer’s claims and independently verified information.

Commitments and cancellation

Reg CF rules address cancellation rights, offering deadlines, early closings and reconfirmation following material changes. The actual offering’s notices and applicable rules determine the available actions and timing. Our demo does not implement a complete legal cancellation process.

Approval does not endorse an investment

SEC registration and FINRA membership of an intermediary do not mean a regulator recommends an issuer or guarantees an investment. A funding portal cannot provide investment advice or recommendations.

Go directly to the source

• Investor.gov: Crowdfunding
• Current Regulation Crowdfunding rules
• SEC: Regulation Crowdfunding