CrowdCheck Blog

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct. Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…

This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct. Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…

This is a question we often get from companies as they are trying to organize their cap table, or provide information to a transfer agent. Many companies seem to be of the belief that shares are not actually issued until a certificate is prepared, or that the shares are recorded on the company’s internal ledger, or the transfer agent’s ledger. However, this is not correct. Taking a step back, investors commit to acquire a company’s shares by signing a subscription agreement (which may also be…