Regulation Crowdfunding

Crowdfunding refers to a financing method in which money is raised through soliciting relatively small individual investments or contributions from a large number of people. [1]

If a company would like to offer and sell securities through crowdfunding, they must comply with the federal securities laws.  Under the federal securities laws, any offer or sale of a security must either be registered with the SEC or meet an exemption. [1]

Regulation Crowdfunding provides an exemption from the registration requirements for securities-based crowdfunding allowing companies to offer and sell up to $5 million of their securities without having to register the offering with the SEC. [1]

With Regulation Crowdfunding, the general public now has the opportunity to participate in the early capital raising activities of start-up and early-stage businesses.  Anyone can invest in a Regulation Crowdfunding offering.  Because of the risks involved with this type of investing, however, you are limited in how much you can invest during any 12-month period in these transactions.  The limitation on how much you can invest depends on your net worth and annual income. [1]

Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.

1. US SEC · Investor.gov — Regulation Crowdfunding ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.