Startups Knowledge Base
What information and documents are needed to prepare for an equity crowdfunding raise?
Before launching your crowdfunding campaign, you must file Form C (more info , PDF template ) with the SEC. This includes general information about your business and business plan; information about your officers, directors and owners of 20% or more of your Startup; details of this offering round (price, target, deadline); and financial statements for the last two years. More details can be found on the SEC’s website. Form C will be made available to potential Investors through the Fundify platform and the SEC's website.
The SEC requires certain financial statements based on the maximum amount you want to raise (see chart).
If this Reg CF (Title III) offering combined with any others your Startup has conducted within the last 12 months totals: | You must provide: |
Up to $250,000 | Your Startup’s total income, tax income and total tax as reported on your Startup’s federal tax return, certified by the principal executive officer of the Issuer; and financial statements of the Issuer, certified by the principal executive officer of the Issuer. If financial statements are available that have been reviewed or audited by a public accountant that is independent of Issuer, then those financial statements will be used instead. |
More than $250,000 | Financial statements that have been reviewed by a public accountant that is independent of the Issuer. If financial statements are available that have been audited by a public accountant that is independent of Issuer, then those financial statements will be used instead. |
$535,000 or up to $1,070,000 | If this is your first Title III offering, you must provide financial statements that have been reviewed by a public accountant that is independent of your Startup. If this is not your first Title III offering, you’ll need financial statements that have been audited by a public accountant that is independent of your Startup. |
More than $1,070,000 | Regardless of whether or not this is your first Title III offering, financial statements must be provided that have been audited by a public accountant that is independent of your Startup. |
