Equity Crowdfunding (Reg CF & Reg A+): Invest in Startups Online
For decades, venture capital and accredited investors dominated private-company rounds. With the JOBS Act and SEC rules for Regulation Crowdfunding (Reg CF) and Regulation A (Reg A+), anyone can invest in startups—on StartEngine, Wefunder, and Republic—with disclosures, limits, and ongoing reports.
From VC-Only Access to Open Investing
Reg CF (live since 2016) and Reg A+ Tier 2 created a regulated path for non-accredited investors. In 2021, the SEC raised the Reg CF cap to $5M, enabled broader testing-the-waters communications, and permitted crowdfunding vehicles that simplify cap tables. Reg A+ Tier 2 supports offerings up to $75M in a 12-month period.
Why Equity Crowdfunding Grew
Higher limits (Reg CF $5M; Reg A+ $75M) attracted more mature teams. Community-as-capital turned customers into owners. Digitized rails (KYC/AML, escrow, transfer agents) made online issuance routine.
For investors: earlier access, diversification beyond public markets, and transparent terms like valuation caps, discounts, and post-money SAFEs.
Market Size: Billions Raised Online
Across Regulation A (2015–2024) and Regulation Crowdfunding (2016–2024), SEC summaries indicate multi-billion proceeds—on the order of ten billion dollars combined—making regulated online startup investing a durable part of U.S. capital formation.
Notable Equity-Crowdfunding Raises (Selected)
| Company | Approx. Amount (public sources) | Notes |
|---|---|---|
| Boxabl | ~$24M (Reg A, 2022); filed up to ~$74M (2024) | Prefab housing; multiple online rounds. |
| Monogram Orthopaedics | $17.2M (Reg A) | Listed on NASDAQ in 2023 after Reg A raise. |
| Miso Robotics | $60M+ (cumulative crowdfunding) | Multiple community rounds. |
| Aptera Motors | $33M (community-led program, 2024) | Solar EV; heavy retail participation. |
| Legion M | $25M+ from ~58,000 investors | Entertainment studio funded by fans. |
Rounded figures; may span multiple offerings. Always check current filings.
Where People Invest: StartEngine, Wefunder, Republic
In the U.S., Reg CF offerings run through a registered intermediary (funding portal or broker-dealer). The largest destinations for retail investors include StartEngine, Wefunder, and Republic, plus issuer-hosted or broker-dealer sites for Reg A+.
Investor differences: minimums, instrument mix (post-money SAFE vs. priced equity), communication cadence, and any secondary/transfer options. Regardless of platform, read the Form C or Form 1-A and risk factors.
Risks, Liquidity, and Sizing
Startup investing is risky and illiquid. Expect potential loss of principal and dilution. Reg CF securities can be restricted initially; even when transferable, secondary markets may be thin. Diversify and size checks appropriately.
Regulation Crowdfunding: Personal Investing Limit (Approx.)
For non-accredited investors. Based on current SEC guidance; platforms apply limits across all Reg CF purchases in a 12-month period. Educational use only.
Note: Educational content only; not legal, tax, or investment advice. Review current rules and offering documents before investing.
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