Startups Knowledge Base
Are there any advertising restrictions for my campaign?
Yes, promotions for Regulation Crowdfunding campaigns must follow rules set by the SEC and FINRA.
Before You File Form C ...
Campaign advertising is not allowed. You may not share information about your funding campaign or your intention to raise funds. You may continue any company or product/service advertising that’s already in place, but it cannot mention your funding campaign.
The one exception is that before you file a Form C (but not after), you may conduct a “Test the Waters” effort to assess interest from potential Investors. This rule took effect in March 2021, and implementation guidelines are still taking shape.
After You File Form C ...
Communication may begin with one of two types of content:
1. Campaign related -- Think provable, factual information. Then think it again.
You may state that you are raising funds through a Regulation Crowdfunding campaign on Fundify with a link to the campaign and identify the terms of your offering including the amount of securities being offered, price of the securities and closing date of your offering. You may also provide factual information about your company including name, address, phone, website, email and a brief description.
As your campaign gains traction, you’ll want to update potential Investors. You can do so with advertising that states the number of Investors and the amount raised so far in this round without mentioning terms (such as the target offering amount or price of securities).
2. Company related -- Here, you tell the story of your company and its growth, giving potential Investors a glimpse into what makes your business unique. This may include a link to “invest” but not language that implies a sense of urgency (no “hurry,” “Invest now,” “time is running out”). This may link to your funding campaign within Fundify.
Note that advertising content may include campaign OR company info but not both.
Consider the Communication Tool
In press releases: This form of outreach almost always highlights your company’s story; therefore, avoid mentioning deal terms in press releases. Simply announce your funding efforts and provide a link to the campaign.
On your company website, link to your funding campaign but do not mention deal terms. Your website is sure to include company information so do not mix deal terms with that information. Simply link to your funding campaign on Fundify.
On your campaign pages within Fundify: Here, you may communicate with potential Investors about the terms of the offering, answer questions and provide company information. In fact, you should direct all campaign-related conversations to your discussion board on Fundify. There, you must identify yourself as a company representative, and we make that easy for you with a designated badge. If you are paying someone to promote your campaign, that person must be identified as a paid promoter on your campaign pages. We have an easy-to-use badge for that as well.
A Note About Mentioning the SEC
Do not state that the SEC has approved your offering. If you mention the SEC, stick with the fact that you have filed Form C with the SEC.
The Goal: Protect Investors
In general, these rules are designed to ensure that all potential Investors have access to the same, factual information and can invest on the same terms as all other Investors in the round.
Learn more in this SEC guide.