So you want to raise money under Title III of the JOBS Act. You know you are required to use a platform but you have no idea which one is right for you.
Here are some questions to ask the platforms you’re considering to help you choose the best one:
- What are all the fees and costs for using your platform? What exactly is included and what isn’t? If I have my own lawyer, are the fees/costs lower?
- Do you specialize in any particular type of business or type of offering?
- Can I offer any type of security or do you only allow certain types of offerings?
- How do you choose who can raise on your platform? Is there an application process? How long does it take?
- Once approved, how long does it take for me to be able to launch my campaign?
- Specifically what services do you provide:
- Pre-raise – do you help with the design of my crowdfunding page? do you help with completing the Form C? do you help with marketing and communications strategy? anything else you help with?
- During raise – do you promote my offering to your list? if so, how big is your list? do you offer any other support during the raise?
- Post-raise – do you help with the required reporting following the raise? do you service the investors in any way or help with investor relations? do you provide W-9s for the investors if I need them? how long does it take to disburse the funds and provide a final accounting?
Also: Ask others who have used the platform about their experience – how is the customer service? did things get chaotic right before you were about to launch? how long did it take for them to send you the money and the final tally of the amount raised? what kinds of support did they offer and what was the quality of the support?
Next Gen Crowdfunding is another resource you can use to compare platforms.