Regulation CF

Regulation Crowdfunding (Reg CF) offerings give small ventures an opportunity to launch their startup by showcasing their potential to the public. The SEC requires that issuers conduct these offerings through FINRA registered crowdfunding portals.

Issuers can raise $5,000,000 in a 12 month period

No limit on the number of investors

Investors can invest money based on their net worth and yearly income. Investment limits in all Reg CF offerings:
- if investor’s annual income or net worth below $124,000, limit is greater of $2,500 or 5% of lesser of net worth or annual income
- if both annual income and net worth are above $124,000 then 10% investment limit with a $124,000 investment max

Financial statement requirements:
- For offerings up to $124,000: The issuer needs to provide financial statements and tax return information, both certified by the principal executive officer, unless reviewed or audited financial statements are available.
- For offerings over $124,000 and up to $618,000: The issuer must provide financial statements reviewed by an independent public accountant, or audited statements if available.
- For offerings over $618,000: The issuer must provide audited financial statements, but first-time issuers can provide reviewed statements if the offering is up to $1,235,000.

Limited resales allowed for one year

Marketed over the internet, with primary solicitation and disclosure occurring on ‘funding portal’

Safe harbor protections for issuers that use an SEC registered transfer agent

Features

EquityTrack, as a cap table tracking provider and SEC registered transfer agent (through Colonial Stock Transfer), will ease your stress. We offer many Reg CF services that facilitate the offering process allowing you to focus on other tasks. Our professional services will solidify your reputation, instilling confidence in your investors.

Full service with flexibility

Manage and update your cap table during the offering process

Book-entry share issuances

Issue your stock in physical and book-entry form

Professional investor support

Help you stay in touch with your investors

Expert guidance

Ensure you comply with the SEC by helping you complete the necessary crowdfunding documents

Manage investor transactions

Transfer shares for current investors, updating their respective stock certificates

24/7 online access

Provide investors with online access to view their financial documents, compliance forms, securities, and more

EquityTrack ensures your compliance with the SEC, completes all transactions associated with the transfer of stock ownership, and manages the structure and accuracy of your cap table. We perform all of these services so you don’t have to. With us as your cap table management provider and transfer agent, you can focus your energy elsewhere and avoid having to manage complex regulatory requirements. Our transfer agent services will ease your stress during the entire Reg CF offering process.

Making Compliance Easy

When conducting offerings under Reg CF, it’s important to keep your investors happy with a service-friendly staff or professional outsourcing partner. Under Reg CF, you can expect smaller investment amounts which may mean a larger number of investors invest in your offering. You may be dealing with many people, and for your offering to be successful, you will need to provide excellent support and bullet-proof compliance making it a perfect time to turn to a professional, expert cap table management provider like EquityTrack and its SEC registered transfer agent, Colonial Stock Transfer.