Crowdfunding

Overview

Regulation CF, established in 2016, allows everyone to invest in new startups and local businesses via online third party intermediaries or portals. Startups control every aspect of the capital raise, from security type, to minimum investment per investor, to overall minimum and maximum raise limits. It is imperative to utilize a seasoned crowdfunding lawyer, who can ensure compliance with the various requirements and post-funding compliance obligations.

New Regulations

In March 2021, Reg CF rules changed, further boosting the opportunities for startups and investors. The new rules provide for the following benefits:

• Overall aggregate offer limit per 12-month period raised from $1.07M to $5M.
• Individual investor caps raised. Accredited investors now have no limits, unaccredited investors limits boosted.
• Special Purpose Vehicles allow all Reg CF investors placed in one legal bucket, solving “messy cap table” problem.
• Companies can “test the waters” (gauge interest) in raise prospects before committing substantial resources.

Fixed Fee Crowdfunding Package

NEXT attorneys have completed a variety of Crowdfunding transactions and understand the critical provisions and process involved with a Reg CF crowdfunding round. Our fixed fee Crowdfunding Package includes:

• Assistance in identifying the crowdfunding portal that is the best fit for you.
• Review of all corporate governance documents in preparation for the raise, including amending articles of incorporation and reviewing bylaws and/or operating agreement
• All disclosures and regulatory compliance with the SEC
• Recommendation of a particular financial instrument to offer in the CF raise, and tailoring of the contract to fit your needs
• Review of contracts and negotiations with vendors
• Advice on social media promotion and other marketing efforts
• Guidance on any legal, regulatory, or compliance questions
• Draft answers (if needed) to investor questions on portal page

All Services

LAUNCH +

• Forming Company
• Building Team
• Granting Equity
• Protecting Intellectual Property

FUNDRAISING +

• SAFE
• Convertible Note
• Series Seed Preferred
• Crowdfunding
• Series A and Beyond

GROWTH +

• Growth Phase

What our Clients Say

"NEXT has been there every step of the way to help guide us through our seed round. The team has been fantastic!"

Julie Melnick, Founder/CEO of Sky Squad

"NEXT has made raising outside capital affordable and eliminated the unpredictable costs of the fundraising process. I found the Legal Fundraising Package included strategic guidance on managing the fundraising process and contained all the documents I needed to handle my equity round at a fraction of the cost of traditional law firm hourly rate pricing."

Andrew Hoppin, Co-Founder and CEO of CoverUs

"As a first-time entrepreneur, I found NEXT to be a great value not only for the startup legal services I needed but for the connections to the business service providers and other ecosystem partners, too."

Dale Nirvani Pfeifer, CEO, Goodworld

"Since our earliest days, Shulman Rogers has been a trusted and capable partner for Doctor.com. Their NEXT platform afforded us access to a full range of legal talent and services for significantly less than the cost of hiring an in-house general counsel. This was particularly valuable in the early years when budgets were tight and our legal needs were diverse. Since then, NEXT has been able to scale with us as we’ve grown, supporting the business through multiple financings and ultimately a successful exit."

Andrei Zimiles, Co-Founder and CEO of Doctor.com