Frequevent Question and Answer: Equity Crowdfunding

What is security crowdfunding?

Last Updated: Mar 16, 2021 06:47

Security crowdfunding is the name given to the process whereby people (the crowd) invest in a company in exchange for securities.

It is a new capital raising and investing method. Securities crowdfunding (Reg CF) enables startups and small businesses to raise up to $5 million capital/year from non-accredited and accredited investors, through funding portals. Non-accredited investors are considered all individuals with an income lower than $200 K/year.

In the US to be considered an accredited investor, one must have a net worth of at least one million US dollars, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

Starting May, 16 2016 when the Regulation Crowdfunding became active, non-accredited investors can be security holders.

Access to the securities and offers and sales of securities appearing on the truCrowd funding portal is limited to residents only. As such, to become an Authorized User on the truCrowd platform, you must affirm and verify your residency. Similarly, any issuer seeking to be listed on the truCrowd website must be based in, and limited to, .

Investing in startups and early-stage businesses involves risks including illiquidity, lack of dividends, loss of investment and dilution. Equity crowdfunding should only be executed as part of a diversified portfolio in accordance with the limits set up by the State Securities Board. At truCrowd we exclusively serve resident investors who understand these risks and are capable of making their own investment decisions. Read the full Risk Warning
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Important Message

TruCrowd, Inc. a Delaware Corporation, is a funding portal (CRD# 283063) member of FINRA (Financial Industry Regulatory Authority), is registered with the Securities and Exchange Commission (SEC file number: 007-00015) and operates only those sections of this website where Regulation CF Crowdfunding offerings are made. TruCrowd, Inc. does not operate those sections of this Website where (a) Regulation A+, or D offerings are made, or (b) any other types of offerings other than Regulation CF Crowdfunding offerings are made. TruCrowd, Inc. neither makes any recommendation regarding, nor is providing any advice with respect to, any company or offering discussed in this communication.

TruCrowd Services, LLC, an Illinois LLC, is NOT a member of FINRA (Financial Industry Regulatory Authority), is not registered with the SEC (Securities and Exchange Commission) to operate Regulation CF Crowdfunding Portals, is not a Broker/Dealer or an Investment Adviser and does not engage in the operation of any Regulation CF Crowdfunding Portals or offerings. TruCrowd Services, LLC does operate sections of this Website on which Regulation A+ and Regulation D offerings are made. TruCrowd Services, LLC neither makes any recommendation regarding, nor is providing any advice with respect to, any company or offering discussed in this communication.

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