Securities Crowdfunding: Should You Use a Funding Portal or Broker Dealer to Raise Money Online?

Under the JOBS Act of 2012, a new type of financial intermediary was created: the FINRA-regulated Funding Portal, a platform that was created to raise money under Regulation Crowdfunding or Reg CF.

Today, there are over 90 approved Funding Portals. At the same time, FINRA-regulated Broker-Dealers may also sell securities issued under Reg CF, and today multiple platforms that are Broker-Dealers are providing online capital formation for private firms.

Many of these platforms, be they Funding Portals or Broker-Dealers, help issuers – firms seeking growth capital – to raise capital under a securities crowdfunding exemption other than Reg CF – including Reg D (506c) or Reg A+. These services include assistance with offering information, promotion, and other features.

So as a company raising money online, should you choose a Broker Dealer or a Funding Portal? What are the different services available to an issuer depending on which type of platform you decide to use?

On March 22, 2023, Crowdfund Insider will host a webinar with three different platforms sharing their expertise: StartEngine, DealMaker, and Dalmore Group.

All three platforms offer services to raise money under the three securities crowdfunding exemptions while providing various services to help ensure a successful funding round. Please join us to hear from:

Dalmore and DealMaker both operate a Broker Dealer. StartEngine operates a Broker Dealer as well as a Funding Portal.

Hear from investment crowdfunding experts as to what you must consider when deciding between a Broker Dealer or a Funding Portal. Learn how to guarantee an online funding round success from some of the largest providers in the industry.

Register for free here. The webinar starts at 1 PM ET on March 22, 2023.



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