CrowdLustro, a Reg CF and alternative asset aggregation platform, has announced a new feature – a Testing the Waters option for issuers.
Under current securities law, Reg CF (Regulation Crowdfunding) securities offerings may “Test the Waters” prior to an official launch of a funding round. A company may garner investor interest before launching a securities offering that may cost thousands of dollars to commence. CrowdLustro will also offer the feature for alternative assets, such as NFTs and other digital assets, along with collectibles.
A Reg CF offering may raise up to $5 million from both accredited and non-accredited investors.
Michael Knox, CEO and founding investor of CrowdLustro, said the exponential growth in securities crowdfunding has created a need for an independent provider of the Test the Waters process:
“CrowdLustro is proud to continue its support for entrepreneurs looking to raise capital and our unique Test the Waters feature allows companies to determine their ability to raise capital prior to committing to a specific funding portal.”
The form is live now on the CrowdLustro site. The company states that all information will be passed onto the funding portal or broker-dealer if the issuer decided to commence a securities offering. CrowdLustro notes that the process is completely compliant with SEC regulations. The company did not indicate the fee, if any, to list a possible offering under the Testing the Waters feature.