Equity Crowdfunding - a Revolution in Startup Fundraising


Starting in 2021 Equity Crowdfunding allows startups to raise funds up to $5 million from both accredited and unaccredited investors.
Raising equity capital from the general public was never this easy!
 
Based on the  JOBS Act, signed into law in 2012 and launched in 2016, US-based companies with less than $1.0 billion in revenue can now secure investments without needing to meet normal SEC registration requirements.
 


 

Our Reg CF Crowdfunding Services

We run your crowdfunding campaign from start to finish at no upfront cost. We earn a fee only when your campaign is a success!

01
Strategy Planning
We help you decide on the best campaign strategy for your startup and select a crowdfunding platform that offers the maximum probability for a successful raise.
02
Campaign Preparation
We prepare your financial statements, create all campaign materials, write the marketing messages, and prepare social media posts for the campaign launch.
03
Campaign Launch
We launch in two stages; a private launch to create initial buzz for your startup from early investors, followed by a mass-rollout to the general public.
04
Management
Throughout the campaign duration we will monitor, adjust, and optimize your campaign for maximum fundraising success.
05
Final Push
Many startups raise the largest amount of funds during the final days - even hours - of a campaign. This is the time to apply our SuperBOOST methodology.
06
Campaign Close
Your campaign was successful, and collecting the funds can begin. We will handle all required tasks associated with post-raise investor follow up. 

 

Pricing

We're in this together. We charge zero upfront fees to help you create and manage your Reg CF campaign.
Our compensation is strictly based on the success of the campaign we create for you; no success - no fee!

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Your provided Marketing Budget:
$10k to be spent on campaign creation and paid ads.

Equity Crowdstars Success Fee: 20% of funds raised.

Equity Crowdstars Share: 10% of securities issued.

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Your provided Marketing Budget:
$25k to be spent on campaign creation and paid ads. 

Equity Crowdstars Success Fee: 15% of funds raised.

Equity Crowdstars Share: 7.5% of securities issued.

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Your provided Marketing Budget:
$50k to be spent on campaign creation and paid ads. 

Equity Crowdstars Success Fee: 10% of funds raised.

Equity Crowdstars Share: 5% of securities issued.


 

Crowdfunding Success Stats

Since 2016 Reg CF equity crowdfunding has exceeded expectations!

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Leading Crowdfunding Platforms

There are many equity crowdfunding platforms in existence today - but which one is best for you? Which one offers the highest chances of reaching your funding goal? Which one is the easiest to get onto? We will answer all of these questions so that your campaign reaches its maximum potential.


 

 

Team Leader

"We are a team of seasoned professionals.
Your are a driven startup founder.
Together we are unstoppable."

 Frequently Asked Questions

What is equity crowdfunding?
Equity crowdfunding is the online offering of private company securities to the general public. Equity crowdfunding allows a broad group of investors to fund a startup company or small business. Investors give money to the startup and receive a small ownership stake of the startup in return. If the startup succeeds, then the value of the investor's ownership stake goes up as well. In the US, startups and small businesses must use an online crowdfunding platform registered with the SEC and FINRA when offering their securities to the public. Equity crowdfunding is especially valuable for startups that don't have access to traditional angel investors or venture capital.

Who can raise funds using Reg CF equity crowdfunding?
Regulation CF crowdfunding is available to US-based startups and small businesses who generate under $1 billion in revenue per year. Some companies are not eligible to use the Reg CF exemption, including certain investment companies, companies that have failed to comply with annual reporting requirements, issuers having being convicted of securities fraud, and companies that have no specific business plan or have indicated their business plan is to engage in a merger or acquisition with an unidentified company or companies.

Who can invest in equity crowdfunding campaigns?
Individuals who can invest in Reg CF campaigns include accredited and non-accredited investors. If an investor's annual income or net worth is less than $107,000 then the investment limit is the greater of $2,200 or 5 percent of the investor's annual income or net worth (whichever is the smaller amount). If both annual income and net worth are equal to or more than $107,000 then the investor's limit is 10 percent of the lesser of the two amounts. Regardless of an investor's annual income or net worth - the maximum amount any investor can invest under Reg CF during a 12-month period is $107,000. Spouses are allowed to calculate their net worth and annual income jointly.  

Is equity crowdfunding like Kickstarter or Indiegogo?
No - equity crowdfunding is not like rewards-based crowdfunding. When you give money to a campaign on Kickstarter, Indiegogo, or similar platform, you will not receive an ownership stake in the company. Instead, in return for your donation you expect to receive a non-financial reward, such as a gift, discount, or limited edition product.

Is there a minimum amount of money my campaign must reach before I can receive the funds?
Equity crowdfunding platforms will hold the funds committed by investors in an escrow account. Only if the campaign reaches the specified minimum amount can these funds be withdrawn by the startup. Individual equity crowdfunding platforms set their own minimums that must be met before a campaign is deemed "successful". If this minimum amount is not reached, then the platform will return the deposited funds to the investors. 

What is the best crowdfunding platform for me?
Since launching in 2016, over 50 crowdfunding platforms have received approval from the SEC, but there is not one that is the best for all startups. Instead, which platform/s will return the best results for your campaign depends on various factors, such as the stage of your company, the nature of your product/service, and the focus of the platform. Some platforms specialize in certain industries or regions, while others accept startups from all walks of life. We will help you select the best platform for your company stage and fundraising goals.

How much does it cost to run a fundraising campaign on an equity crowdfunding platform?
Crowdfunding platforms charge a fee to allow a campaign to run on their platform.  Some platforms charge an upfront fee, while others only charge a fee if the startup's campaign is successful and reaches the minimum fundraising goal. Fees that might be covered by a platform include escrow services, legal, CPA, and marketing. 

What is the legal basis for equity crowdfunding?
Historically, equity crowdfunding was limited to certain wealthy individuals ("accredited investors") who needed to meet certain net worth and income levels. All of this changed with the JOBS Act (Jumpstart Our Business Startups Act) signed into law under the Obama administration in 2012. The JOBS Act is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. In May 2016 the JOBS Act's Title III equity crowdfunding rules, also known as the Regulation Crowdfunding (Reg CF) rules, went into everyday people to invest in private startups and small businesses.

How much money can I raise using equity crowdfunding?
Under Reg CF a startup can raise up to $ 5 million during a 12-month period. For companies that need to raise higher amounts, Reg A+ Tier 1 and Reg A+ Tier 2 regulations offer the ability to raise up to a maximum of $20 million and $70 million per 12-month period, respectively. 

Do I need to submit financial statements?
Yes - for a funding target over $250,000 the startup must submit its financial statements and certain information from its federal income tax returns, both certified by the chief executive officer of the startup. If the startup has reviewed or audited statements then those are to be submitted instead. For raises over $250,000 the company needs to submit statements reviewed by an independent public accountant. If audited statements exist, they are to be submitted instead. For raises over $535,000 the company - if raising funds under Reg CF for the first time - needs to submit reviewed statements unless audited financial statements are available. If the company has raised funds under Reg CF before, then audited statements are required.

Is equity crowdfunding like Lending Club or Prosper?
Generally speaking No - equity crowdfunding is not like peer-to-peer lending. When you loan cash to a borrower on a lending platform, you will not receive an ownership stake in the company. Instead, you expect to get your money back plus interest after a certain amount of time has passed. 

However in 2020 several platforms have introduced Revenue Share Notes where you are
not buying an ownership interest in the startup but that feature a specified return.

How long does it take for my campaign to raise my targeted amount of funding?
This depends on many factors; extremely successful campaigns might reach their funding goal after only a few weeks. Many campaigns run for several months before being closed. The startup decides how long it wants to keep the campaign open; once the company has reached its minimum raise it can stop, or it can continue and try to reach its maximum stated funding goal subject to approval from the listing platform.

Can I run several crowdfunding campaigns on multiple platforms at the same time?
No - crowdfunding platforms will not allow a startup to run the same campaign on multiple platforms in parallel. However, once a startup closes its campaign on the selected crowdfunding platform it may launch a new campaign on another platform. Keep in mind that a startup cannot raise more than the maximum $5 Million during any 12-month period. 

How much do you charge for your services?
Equity Crowdstars charges no upfront service fee. Instead, our fee is calculated based on the amount of money raised with the campaign we create for you. This means that we only get paid if our campaign is successful in raising funds for your startup. However, there is an out-of-pocket cost required to pay for advertisements on social media. We offer three services packages to choose from  depending on the amount of budget you would like to commit to the campaign's creation and promotion.