Can Foreign Nationals Invest in US Crowdfunding Offers? Yes … But….

English Lawyer AttorneyA Crowdfund Insider reader reached out to us last week with an excellent question: can foreign nationals invest in US investment crowdfunding offers. We checked with several leading Fintech legal experts for their feedback on this question and we share some of this below.

In the US there are three different iterations of investment crowdfunding. There is Reg D, 506(c) which is for (US) accredited investors only. While individuals may invest online, and platforms may “Generally Solicit” (SEC-speak for advertising), you have to prove you are able to invest based off of economic metrics.  Basically, you have to have enough money to qualify – no  worries if you have no idea what you are doing. Then there is Reg CF or retail crowdfunding where anyone may invest.  In between the two is Reg A+, where issuers may raise up to $50 million in a mini-IPO type offering. The filing must be qualified by the SEC -something that takes a bit of time and expense. Any of these offerings may accept individual investors from outside the US.

An individual investor must always adhere to his or her home country’s regulations. So always be prudent. Also, some platforms may require additional hurdles for foreign nationals to allow them to invest in a securities offer. And some may not want to go through the hassle (and cost) at all.  But always be certain to check with your own legal counsel before you proceed.

(Editors Note: this is not intended to be legal advice. Always confer with your own attorneys)


Sponsored Links by DQ Promote

 

 

Send this to a friend