Regulation Crowdfunding FAQs
Considering raising capital through Regulation Crowdfunding?
Here are questions we are frequently asked.
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The SEC requires disclosure of financial and other types of information in the "Form C" offering memorandum which states the terms of the raise, history of the company, and a few other key pieces of information. Raise Green provides each issuer with a Reg CF filing service, helping to complete all required documentation. As Reg CF experts, we're by your side through every step of the process.
Bank loans for early stage ventures and community-scale energy projects are historically hard to quality for. Raise Green makes the funding you need much more acccessible through Regulation Crowdfunding. It can help unstick projects that can't get off the ground due to financing restraints and engage the public to increase community support.
Yes! You can use PACE financing AND Regulation Crowdfunding on the same project if your PACE financing doesn't cover all your financing needs.
Ref: https://www.energy.gov/eere/slsc/property-assessed-clean-energy-programs
Typically, we see originators plan their raise over about 2 months and launch a live offering that lasts 1 to 2 months (the "offering period"), so around 3 months between deciding to do a Crowdfunded raise and receiving the raised cash. However a fast-tracked project can be launched in days to weeks, especially for repeat issuers, and the minimum live offering period is just 21 days. Tell us your project timeline and your experience level, and we can recommend a plan for you.
As soon as your raise is complete, we make sure the cash is ready to transfer to your project's bank account, and that there are no errors or discrepancies, which takes about 5-10 business days from the closing of your offering period.
You can raise anywhere from $10,000 to $5,000,000 in a single crowdfunded raise. If you do more than one raise in a 12 month period, the total combined raise amount can be up to $5,000,000 per issuer, per 12 month period.
There are many advantages to raising money through crowdfunding.
- Simplicity - You decide how much you want to raise, what kind of security you'll sell, and we've streamlined all the steps to launch an offering right through to when the money hits your bank account.
- Adapts to Your Business Model - Typical solar projects have a 3-part financing structure with tax equity, sponsor equity, and debt components. You can use crowdfunding to finance some or all of the sponsor equity or the debt portion of your capital structure.
- Flexible Security Terms - You don't have to accept standard, fixed terms that a traditional institution might offer, such as the interest rate or tenor of a loan, or a certain dividend schedule for an equity security. You can design your own!
- Total control over the timeline - The minimum period to list your offering on the Raise Green marketplace is just 21 days, or you can leave your offering live for months.
- Awareness - Engaging the public builds wide spread support and awareness of your company/project.
- Recognition as an innovator in Inclusive Finance without having to reinvent the wheel
Almost anyone in the United States can invest in an offering on the Raise Green platform! Regulation Crowdfunding has opened public investment in projects and early stage companies to the wider public, not just accredited investors.
For the most part no, while you can make allocation discretionary based on different preferences, Regulation Crowdfunding is open to most US-based investors.
When structuring your raise, Raise Green will work with you to define appropriate minimum and maximum offering amounts. We always suggest that the minimum amount is sufficient to make a material impact on your project. If you do not hit your maximum amount, you can leverage the fact that you have secured funds via crowdfunding to seek financing elsewhere. You can also consider doing a second listing.
At the end of the raise, the funds from the sale of securities is held in escrow while the investments are validated. Once this process is reconciled, the full amount of the funding, with Raise Green's fees implemented, will be transfered to the bank account that you have provided.
No, Raise Green cannot guarantee a certain number of investors.
All external communications must follow regulations and guidance as set forth by the SEC and FINRA. For more information, visit this link about the rules of Reg CF.
An issuer is permitted to provide information about the terms of an offering under Regulation
Crowdfunding in the offering materials for a concurrent offering without violating Rule 204 as long as they do not violate the standard communication regulations under Reg CF, as well as they do not include a hyperlink to the Raise Green offering in the concurrent offering’s documentation.
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