Why We Built A Mini Regulation Crowdfunding Course


It’s approaching a year since Regulation Crowdfunding (Reg CF) went live. So, how’s it going?

Well, there’s a new white paper on Regulation Crowdfunding that is giving us some insights. At the end of February, the SEC published a white paper on the topic, offering up a few key findings, despite a small sample size and a small window of data collection (May 16, 2016 through December 31, 2016). Still, the findings are worth checking out. Ze’-ev Eiger captured some notable highlights in his post on the JDSupra Business Advisor site: 

  • 163 offerings were filed (by 156 issuers) that totaled $18 million, with an average raise amount of $110,000. All of these issuers also “accepted oversubscriptions” for higher amounts, bringing the overall (aspirational) raise total to $101 million.
  • Of the above offerings, 28 reported success on Form C-U by December 31, 2016.
  • Noteworthy issuer details: “The median issuer had under $50,000 in assets, under $5,000 in cash, $10,000 in debt, no revenues, and three employees. Approximately 40% of the issuers reported positive revenue and approximately 9% of the issuers reported a net profit in the most recent fiscal year.”
  • Noteworthy geography details: “The most popular state of incorporation for issuers was Delaware and the most popular principal place of business for issuers was California.”
  • The two most popular securities were: “simple agreements for future equity” and debt.

A Regulation Crowdfunding campaign sounds “easy”. But it’s not.

The white paper helps to bring home an important point: A Reg CF campaign may sound simple in theory or on paper, but it is not a “fly by the seat of your pants” undertaking, nor is it a magic bullet. If you keep reading this sentiment in various articles and blog posts, it’s because it bears repeating.

Because there are many not-so-insignificant steps in the preparation phase of a crowdfunding campaign it can be hard to know where to start…and how to draw up a checklist to make sure you don’t miss any steps. And then there’s this: a crowdfunding campaign—whether you are interested in rewards or equity—requires marketing…and usually that means a marketing budget. But if you’re a new venture, or still pre-revenue, a marketing budget can be challenging to produce.

Our “mini” course aims to help Reg CF issuers

At Crack the Crowd, we operate a marketing agency, but we also champion entrepreneurs who are attempting a “dent in the universe“. That’s why we created a prototype for a “mini” online course that helps Regulation Crowdfunding issuers navigate all the steps involved in preparing and launching a crowdfunding campaign. (Not everyone can hire a marketing agency—we get that.) Under this particular regulation, there are a lot of compliance issues, and we baked that into the prototype we created.

We’re still in the process of completing the beta, but that doesn’t mean you can’t sign-up to be notified when it’s live.

For a limited time we’ll be offering the beta for free (in exchange for feedback, of course). If you’re interested, click on the button below.

Sign up today to participate in the beta of the Regulation Crowdfunding course (for free!).

About the Author:

Gabi is Director of Marketing for Crack the Crowd.