By Geri Stengel
Prior to the Jumpstart Our Business Startups (JOBS) Act, advertising investment opportunities in private companies were banned. That all changed when the JOBS Act was signed into law but it required the Securities & Exchange Commission (SEC) to write the rules for three different ways private companies could raise money:
The floodgates haven’t exactly burst open for Reg CF. That’s been the case for all forms of crowdfunding but all are making slow and steady progress. “It will take education,” said Ron Miller, CEO of StartEngine, a crowdfunding platform, a website that allows companies to raise capital by exchanging capital for securities (equity or debt). People need to know about the opportunity, challenges and benefits of raising money through Reg CF and how to do it successfully. Having a social network and knowing how to market to it are key, noted Miller.
Why Reg CF
Long-time friends and colleagues Angela Lee and Jennifer Roe teamed to the tell the story of 12 people including Roe who lost on average 100 pounds each. The documentary was called ‘From Fat to Finish Line.’ Because the documentary went viral and they received lots of requests for resources, advice and support, Lee and Roe realized they could turn the momentum into a business. They decided to use a membership model.
Catch up on my current posts along with industry articles