Form C Disclosures for Crowdfunding

Equity crowdfunding is a regulated fundraise by FINRA, the Financial Industry Regulatory Authority.

A company can raise up to $5M on equity crowdfunding.

Anyone can invest. Those who are not accredited investors are limited to $2,200 per year per company.

Those raising funding must file a Form C with the Securities and Exchange Commission.

The company raising funding must be based in the US.

The Form C requires the following information:

– The biographies of officers and directors and anyone owning more than 20% of the company.
– A description of the business and what it does.
– How the raised funds will be used.
– The method for calculating the price of the security.
– The target fundraise amount and the deadline for raising it.
– A description of the company’s financial condition.
– Financial statements of the company.

In preparing for an equity crowdfunding raise, you’ll need to provide this information for compliance purposes.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.