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Startup Crowdfunding Toolkit
Practical Law Toolkit w-002-0387 (Approx. 6 pages)
Startup Crowdfunding Toolkit
by Practical Law Corporate & Securities
| Maintained • USA (National/Federal) |
Resources to assist startup companies and their attorneys with planning and executing equity crowdfunding offerings to accredited investors under Securities Act Section 4(a)(2) and Regulation D or to non-accredited investors under either Securities Act Section 4(a)(6) and Regulation Crowdfunding or Securities Act Section 3(b)(2) and Regulation A (or, as it is now commonly called, Regulation A+).
Crowdfunding is the practice of financing a project, product, or startup venture by raising modest amounts of capital through an online platform or intermediary from many individuals who each contribute a relatively small amount. Crowdfunding may enable capital raising by some companies that do not have access to traditional methods of fundraising, such as conducting venture capital financings or initial public offerings in the capital markets.
This Toolkit includes resources designed to assist startups and their attorneys with planning and executing different types of equity crowdfunding offerings, including:
- Accredited crowdfunding offerings to accredited investors, such as angel investors, under Securities Act Section 4(a)(2) and Rule 506(b) or (c) of Regulation D.
- Crowdfunding offerings to accredited and non-accredited investors under Securities Act Section 4(a)(6) and Regulation Crowdfunding.
- Mini public offerings to accredited and non-accredited investors under Securities Act Section 3(b)(2) and Regulation A (or, as it is now commonly called, Regulation A+).
For a complete list of Practical Law's resources for startups, see the Startup Company Toolkit.