In March 2020, the SEC proposed rules to simplify, harmonize, and improve the exempt offering framework, including Reg CF. Here are our thoughts on the proposed changes.
Equity Crowdfunding Community
for startup investors and founders
Courses, forums, and community to help investors and founders take their skills to the next level in equity crowdfunding
What is Equity Crowdfunding?
In May 2016, a new type of asset class opened up in the US to everyday investors like you and me for the first time since 1934. Now, all investors, regardless of income, have the ability to invest in early-stage startups through something called equity crowdfunding.
Compared to rewards-based crowdfunding companies - such as Kickstarter and Indiegogo - equity crowdfunding differs in that you own a piece of the company (i.e. equity), sharing in the successes and failures.
Here’s What You’ll Get When You Sign Up
Whether you are a startup investor or founder, Crowdwise offers some of the best educational resources, forums, and tools to help you achieve your goals in equity crowdfunding.
Why invest in startups?
Investing in startups is risky, especially if you don't know what you're doing. But it can also be extremely rewarding, both financially and in other aspects of improving your life. Here are some of the top reasons investors choose to risk their hard-earned dollars to support early-stage startups.
Diversify Your Portfolio
As an asset class, startups provide an alternative outside of public market stocks or bonds. With minimum investment limits as low as $10 per company, investors can spread their risk among many startups.
High Risk, High Potential Reward
While many startups will fail to return any money to investors, the few that succeed can provide massive returns. These unicorns ($1 billion+ companies) in the industry are part of the reason that taking all the risk can be worth it.
Support Founders Near and far
Interested in owning a piece of a local brewery? Or perhaps taking part in a high-growth startup's success? Both (and more) are possible with Reg CF, as companies that raise funds on approved funding portals are available to all investors.
To become one of the best, start by learning from the best
Whether you're a new startup investor or founder, the Crowdwise community will help you grow and develop your skills much faster than you could alone. A few of the benefits of joining include:
About the Founder of Crowdwise, Brian
Like many of you, I do NOT come from a background of startups or finance.
An engineer by training, I've always been interested in alternative finance and investing in the future and for my future.
I've read all the Venture Capital books, taken all the angel investing courses, and boiled down all the key lessons into the essential points that startup investors and founders need to know for equity crowdfunding.
I have created Crowdwise to bring others like me - the working professionals, entrepreneurs, dreamers, and hustlers - together in a place where we can share our lessons and help each other become the best versions of ourselves.
Read More about Equity Crowdfunding
LLC to C Corporation Conversions – Tax Consequences for Investors
I had my first LLC investment decide to convert to a C Corporation in 2019. Today’s post will cover my personal experience handling that conversion and what the potential tax implications are for investors when a conversion occurs.
Three Ways the U.S. Gives Tax Relief for Investing in Startups
While startups are very risky, the U.S. provides three key tax benefits for startup investors to make early-stage investments more enticing. Learn all about Section 1202, 1045, and 1244 as well as other key tax considerations for startup investments.