4.2.9.6. Crowdfunding: Regulation CF
Crowdfunding allows small companies to raise up to $5 million in equity financing over a twelve-month period. Crowdfunding is governed by the SEC’s Regulation Crowdfunding, or Regulation CF for short. Only non-reporting U.S. companies may crowdfund. Investment companies and bad actors are excluded. Like Regulation A, Regulation CF allows for testing the waters with potential investors before filing anything.
Crowdfunding must be conducted entirely t