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?

WeFunder – $70.9M
StartEngine – $68.6M
Republic – $37.7M
Netcapital – $8.2M
MicroVentures – $5.7M
SeedInvest – $5.1M
Mainvest – $4.0M
Nextseed (merged with Republic in 2020) – $3.7M
Equifund CFP – $3.0M
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)

Startup capital raised (2020): $37.7M
Platform Fees: 6% of amount raised, 2% of securities sold
Other Fees: $1,500 for Form C, ~$1,500 for escrow, 3.5% for credit card transactions
Referral Discounts on Fees: Yes – $1,000 discount and white glove treatment
Extra Due Diligence / Deal Curation: Yes
Primary Securities: Crowd SAFE
Registered Broker-Dealer: No

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