Reg CF Platforms – Which one to go with?

There are plenty of Reg CF platforms out there to choose from, our goal is to break down that list and give you a quick snapshot of what each one looks like, and why you might want to go a certain direction. Not all platforms are created equal and some are going to better for certain types of funds. 

Depending on the size of your fund, the industry, and the product you might want to go one way or the other when selecting your Reg CF platform.

Here is a quick snapshot of the top 10 Reg CF sites and how they compare to one another.

How much has been raised?

  1. WeFunder – $70.9M
  2. StartEngine – $68.6M
  3. Republic – $37.7M
  4. Netcapital – $8.2M
  5. MicroVentures – $5.7M
  6. SeedInvest – $5.1M
  7. Mainvest – $4.0M
  8. Nextseed (merged with Republic in 2020) – $3.7M
  9. Equifund CFP – $3.0M
  10. Trucrowd – $2.1M

 

Here are a few details of the top Reg CF platforms…

WeFunder (review and overview)

  • Startup capital raised (2020): $70.9M
  • Platform Fees: 7.5% of amount raised (best price match offer)
  • Other Fees: none (credit card fees of 3.5% paid by investors)
  • Referral Discounts on Fees: Yes – 10% off fees and $0 up front (this can be $8,000+ in discounts)
  • Extra Due Diligence / Deal Curation: No
  • Primary Securities: SAFE, Equity, Revenue Share
  • Registered Broker-Dealer: No

StartEngine (review and overview)

  • Startup capital raised (2020): $68.6M
  • Platform Fees: 7-12% of amount raised; $10k service fee
  • Other Fees: 0.5% escrow fee
  • Referral Discounts on Fees: Yes – up to $1,000
  • Extra Due Diligence / Deal Curation: No
  • Primary Securities: Equity (Common), Convertible Notes
  • Registered Broker-Dealer: Yes
  • Secondary Platform: launching in Q4 2020

Republic (review and overview)

Netcapital

  • Startup capital raised (2020): $8.2M
  • Platform Fees: 4.9% of amount raised + engagement fee
  • Other Fees: escrow included in Netcapital performance fee
  • Referral Discounts on Fees: None
  • Extra Due Diligence / Deal Curation: Limited (100 point inspection)
  • Primary Securities: Equity (Common)
  • Registered Broker-Dealer: No

MicroVentures

  • Startup capital raised (2020): $5.7M
  • Platform Fees: No fees in 2019; now charge 5% commission + 2% securities as of August 2020
  • Other Fees: $1,000 min. or .35% escrow fee; $1,500 Form C software; $1,000 Form C legal review
  • Referral Discounts on Fees: None
  • Extra Due Diligence / Deal Curation: Yes
  • Primary Securities: Convertible Note
  • Registered Broker-Dealer: Yes

SeedInvest

  • Startup capital raised (2020): $5.1M
  • Platform Fees: 7.5% of amount raised, 5% of securities sold
  • Other Fees: SI covers escrow, legal, due diligence, and filing fees up-front, reimbursed as flat $10k upon successful campaign closing
  • Referral Discounts on Fees: None
  • Extra Due Diligence / Deal Curation: Yes
  • Primary Securities: Convertible Note, Equity (Preferred)
  • Registered Broker-Dealer: Yes

Mainvest

  • Startup capital raised (2020): $4.0M
  • Platform Fees: 6% of amount raised
  • Other Fees: None
  • Referral Discounts on Fees: No
  • Extra Due Diligence / Deal Curation: No
  • Primary Securities: Revenue Share
  • Registered Broker-Dealer: Yes

NextSeed

  • Startup capital raised (2020): $3.7M
  • Platform Fees: 7-10% of amount raised (only 5% for investors brought in through unique referral link)
  • Other Fees: escrow fee of $500; investors charged 1% on each payment
  • Referral Discounts on Fees: Yes – $500
  • Extra Due Diligence / Deal Curation: Yes
  • Primary Securities: Debt, Equity, Revenue Share
  • Registered Broker-Dealer: Yes

Equifund CFP

  • Startup capital raised (2020): $3.0M
  • Platform Fees: 7% of amount raised and 7% of securities offered
  • Other Fees: None
  • Referral Discounts on Fees: No
  • Extra Due Diligence / Deal Curation: Yes
  • Primary Securities: Equity (Common)
  • Registered Broker-Dealer: No

TruCrowd

  • Startup capital raised (2020): $2.1M
  • Platform Fees: $3,500 listing fee, up to 12% of amount raised
  • Other Fees: escrow fee $5,000
  • Referral Discounts on Fees: No
  • Extra Due Diligence / Deal Curation: No
  • Primary Securities: Various
  • Registered Broker-Dealer: No

Buy the Block

  • Startup capital raised (2020): $1.6M
  • Platform Fees: 4.5% of amount raised plus 2% equity
  • Other Fees: See fee schedule
  • Referral Discounts on Fees: No
  • Extra Due Diligence / Deal Curation: No
  • Primary Securities: Equity
  • Registered Broker-Dealer: Yes

If you have any questions about which Reg CF platform would be best for your fund, be sure to reach out to us for a free consultation. 

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