Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
CrowdCheck Blog
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
Since the increase in the maximum offering amount to $5 million a couple of years ago, we’ve seen more interest in Reg CF offerings by venture-backed companies. Sadly, it doesn’t work for a lot of them.
This is because of what we refer to as the “issuer aggregation rule”. Rule 100(c) explains that “issuer” for the purpose of calculating the $5 million limit (and also determining whether an issuer is a first-time user of Reg CF) includes all entities controlled by or under common control with…
This entry is filed under Capital Raising, Crowdfunding, Crowdfunding Conditions, Due Diligence, Due Diligence Process, Financial Statements, Regulation, SEC, Section 4(a)(6), Securities Law
This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct.
Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…
This entry is filed under Capital Raising, Educational, Securities Law
This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct.
Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…
This entry is filed under Capital Raising, Educational, Securities Law
This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct.
Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…
This entry is filed under Capital Raising, Educational, Securities Law