The SEC analyzed the current market and determined that crowdfunding portals and broker dealers would benefit the most by working together. \u00a0This increases access to investors for both parties and benefits the company overall. Interestingly enough only 13% of all new Reg D offerings from 2009 to 2012 used a broker dealer. \u00a0Apparently many companies prefer to go it on their own or with local counsel.<\/p>\n
If you are a company that needs to raise money consider the following:<\/p>\n
Create One Set of Disclosurs<\/strong><\/p>\n You will save time, and be in compliance, by creating one comprehensive set of disclosures that can be used in your private offering and crowdfunding campaign. \u00a0While there may be some changes, creating a core set of documents that is reviewed by a Securities Attorney is smart. \u00a0We recommend that you create disclosures as if you are offering the investment opportunity to a non-accredited investor. \u00a0While this is additional paperwork it will protect you down the road in the event that a non-accredited investor is accidentally allowed into your private offering. \u00a0While we can all say that this never happens – it does.<\/p>\n Audited Financial Statements<\/strong><\/p>\n The SEC does not require audited financial statements for Reg D offerings. \u00a0However, it is important to note that the SEC will fine companies and issuers that make what they feel are misleading statements or representations. \u00a0Hiring a CPA to audit your financial statements removes some of the risk from the issuer. \u00a0If you provide accurate information to the auditor it is their responsibility to certify them which can protect the issuer in the event that the opportunity does not produce the level of return that was anticipated.<\/p>\n
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