By Ruth Hedges, Founder and CEO CrowdfundingRoadMap and FundingRoadMap and Board Member of the Crowdfund Intermediary Regulatory Advocates (CFRA). In order to get you ready for your crowdfunding campaign we have put together a list of actions companies must take now to be prepared.
Passage of the JOBS Act and the legalization of debt and equity based crowdfunding is a very exciting proposition. The community opening their arms and wallets giving your business the funds you need to thrive and investors a chance to profit. Unfortunately, what many crowdfunding companies don’t realize is that debt and equity based crowdfunding is a good deal more complicated then donation based campaigns. It is not as simple as setting up a deal room on Kickstarter and emailing your network. There is preparation that needs to be started now in order for you to be eligible to do an equity based crowdfund come Spring next year.
The crowdfunding provision of the JOBS Act mandates that companies meet certain regulatory hurdles, such as audited financial statements and incorporation before listing their company on equity crowdfunding platforms. In order to get you ready for your crowdfunding campaign we have put together a list of actions companies must take now to be prepared.