Regulation CF, also known as Regulation Crowdfunding or Reg CF is a section of the
United States Code
In the law of the United States, the Code of Laws of the United States of America (variously abbreviated to Code of Laws of the United States, United States Code, U.S. Code, U.S.C., or USC) is the official compilation and codification of th ...
, in particular 17 U.S.C. ยง 227 (2021) dealing with
equity crowdfunding
Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets. Because equity crowdfunding involves investment into a commercial enterprise, it is ...
. This section of the law originated with Title III of the 2012
JOBS Act
The Jumpstart Our Business Startups Act, or 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. It passed with bipartisan support, and was signed into ...
which went into effect on May 16, 2016.
Several U.S. platforms, called ''funding portals'', currently facilitate Reg CF investments, including
SeedInvest and
Wefunder
Wefunder is a crowdfunding service which connects startups with investors online. Wefunder uses a provision in the 2012 JOBS Act which allows unaccredited investors to purchase equity in early stage private companies.
Foundation
Wefunder was ...
.
See also
*
Regulation A
In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. R ...
References
Crowdfunding
United States federal legislation
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