Is crowdfunding the right raise for you?
Reg CF works best for companies with a product people love and a community that wants a piece of it. Here's how to tell if that's you, and what it takes to do it well.
Reg CF tends to fit when you…
- Sell to consumers, or to businesses in a way anyone can grasp
- Have real traction: revenue, users, or a waitlist
- Can reach thousands of fans, customers, or followers directly
- Need $250K to $5M, alone or alongside an angel or VC round
- Want customers as owners and advocates, not just backers
How it compares to other ways to raise
Reg CF isn't a replacement for venture capital. It's a different tool, and many companies use it alongside other rounds.
| Reg CF | Reg D 506(b)/(c) | Reg A+ | Venture capital | |
|---|---|---|---|---|
| Max raise | $5M / 12 months | No limit | $20M (Tier 1) / $75M (Tier 2) | Negotiated |
| Who invests | Anyone | Mostly accredited only | Anyone (limits in Tier 2) | Funds |
| SEC filing | Form C | Form D notice | Form 1-A, SEC qualification | None |
| Time to launch | 6–10 weeks | Days to weeks | 3–6+ months | Months of meetings |
| Upfront cost | Low to moderate | Low | High (legal, audit) | Low cash, high equity |
| Marketing reach | Public, through platform | Private (506b) or public (506c) | Public | Private |
Simplified for comparison. Read Reg CF vs. Reg A+ vs. Reg D for the details.
What it costs, at your raise size
The biggest cost driver is the level of financial statements the SEC requires, which steps up with the amount you're raising. First-time issuers get a break: reviewed statements, not audited, up to $1.235M.
Platform fees are usually a percentage of what you raise, often paid only on success. Some platforms also charge setup or marketing fees, or take a small equity stake. Compare total cost, not just the headline rate.
Ranges here are rough planning numbers, not quotes. Your CPA and platform will give you the real figures.
Size your raise
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- Typical accounting cost
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- Platform fees (typ. 5–10%)
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Your prep checklist
Most delays come from the same few places. Get these in order before you talk to a platform.
Company
- U.S. entity in good standing, with a clean cap table
- Founder shares vested and documented; IP assigned to the company
- No "bad actor" issues among officers, directors, or 20% owners
- Up to date on any previous Reg CF annual reports
Financials
- Two fiscal years of books (or since inception), GAAP-ready
- A CPA lined up for the review or audit your raise size requires
- A clear use-of-funds plan you can defend
Offering
- Security chosen: SAFE, convertible note, common, or preferred
- Valuation or cap you can explain to a non-expert
- Minimum target you're confident you'll hit
- Investor perks, if any, that don't create big fulfillment costs
Campaign
- An email list and social audience you can activate on day one
- Short video, pitch deck, and FAQ
- Someone who owns the campaign for its full 60–90 days
- Plan to secure 30–40% of your target in reservations before launch
Choosing a platform
Every Reg CF raise must run through a single SEC-registered funding portal or broker-dealer. They differ in fees, investor audience, how selective they are, and how much marketing help they give.
We know the major platforms and their terms. Take the quiz and we'll send you a shortlist of the ones that fit your company, with typical fees and what they look for.
Common questions
Do I lose control of my company?
Usually not. Many raises use SAFEs or non-voting shares, and crowd investors rarely get board seats. Some platforms hold investors in a single entity so your cap table shows one line.
Will this scare off VCs later?
Less than it used to. A clean structure and a strong raise are increasingly seen as validation. Messy terms are what cause problems.
Can I advertise my raise?
Yes, with rules. Before filing you can test the waters; after, you can promote freely as long as you point people to your platform page.
See where you stand
Nine questions. A readiness score, your biggest gaps, and a personalized platform shortlist.