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Raising the Reg CF limit to $20M
This past July 19 our CEO, along with 9 other crowdfunding industry leaders, signed a letter asking the Securities and Exchange Commission (SEC) to raise the the maximum allowed to raise under Regulation Crowdfunding to $20 million. Chairman Jay Clayton, will be the one making this decision and if he decides to raise the limit he will most likely get support from congress.
There are several reasons out lined in the letter in regards to why the limit should be raised. Below are my favorite ones:
Both the United Kingdom and Germany have adjusted their caps to 8M EUR (US$9.4M). The United States should not be a follower but a leader
Over $137M has been committed to these issuers. 95% ($130.4M) of that capital was funded and invested into 715 companies (68.5% success rate). These 715 companies are supporting 4,172 jobs and producing over $249M in revenue.
Wefunder supports three different federal laws that allow startups to raise money legally. To comply with the law, Wefunder Advisors LLC and Wefunder Portal LLC (both owned by Wefunder Inc) also list startups depending on the regulation used.
Legal May 16th 2016
Wefunder Portal LLC
for 301 startups
Wefunder Advisors LLC
for 102 startups
for 3 startups
Curious how well the companies have done? Or how many raised follow-on financing?
Some fine print: 1) These numbers include startups currently live on Wefunder if they pass their minimum target. 2) Some startups use two different laws at the same time (i.e., Regulation D and Regulation Crowdfunding).
Join 626,829 investors who funded 387 startups with over $137 million1
wefunder.com/updates/92457-raising-the-reg-cf-limit-to-20m is managed by
Wefunder Inc. runs wefunder.com and is the parent company of Wefunder Advisors LLC and Wefunder Portal LLC. Wefunder Advisors is an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder Portal is a funding portal (CRD #283503) that operates sections of wefunder.com where some Regulation Crowdfunding offerings are made.
Wefunder, Inc. operates sections of wefunder.com where some Regulation D and A offerings are made. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA.
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