If you've been researching equity crowdfunding, you've probably come across the term Reg CF.

But what exactly is Reg CF, and why has it become one of the most popular fundraising options for startups and small businesses?

In simple terms, Reg CF (Regulation Crowdfunding) allows companies to raise money from everyday investors through SEC-approved crowdfunding platforms. Instead of relying solely on venture capital firms, angel investors, or banks, startups can raise capital directly from their customers, supporters, and communities.

In this guide, we'll explain what Reg CF is, how it works, who can invest, and why thousands of startups are using Regulation Crowdfunding to raise capital. If you're still exploring your options, check out our overview on how to raise startup funding for a broader look at what's available.

What Is Reg CF?

Reg CF, short for Regulation Crowdfunding, is a securities exemption created under the JOBS Act that allows private companies to raise money from the general public.

Before Regulation Crowdfunding existed, investing in startups was largely limited to accredited investors—individuals with high income or significant net worth.

Reg CF changed that.

Today, almost anyone can invest in startups through approved crowdfunding platforms, often with investments starting as low as $100.

This opened the door for a new era of startup fundraising known as equity crowdfunding—and sparked a wave of platforms like Wefunder, StartEngine, and Republic making it easier than ever for founders to run a campaign.

How Does Reg CF Work?

The Regulation Crowdfunding process is relatively straightforward.

Step 1: A Company Launches a Reg CF Campaign

A startup or small business creates a fundraising campaign through an SEC-registered crowdfunding platform.

The company provides information about:

• Its business model
• Management team
• Financial condition
• Use of proceeds
• Investment terms
• Risks associated with the investment

A critical part of this step is filing Form C — the mandatory SEC disclosure document required for any Reg CF raise. Think of it as your public-facing investor dossier.

Step 2: Investors Review the Opportunity

Potential investors can review the offering materials and conduct their own research before deciding whether to invest.

Unlike traditional venture capital, these opportunities are available to the general public. On platforms like FishTank, investors can even discover founders through short-form video pitches — making it easier to evaluate the team behind the deal, not just the documents. We explore this shift in TikTok-Style Investing: What FishTank Gets Right.

Step 3: Investors Commit Capital

Investors can contribute funds directly through the crowdfunding platform.

In exchange, they may receive:

• Equity shares
• SAFEs (Simple Agreements for Future Equity)
• Revenue-sharing agreements
• Other approved securities

Step 4: The Company Receives Funding

If the fundraising target is met and all regulatory requirements are satisfied, the company receives the capital and can use it to grow the business.

How Much Can Companies Raise Through Reg CF?

Regulation Crowdfunding has evolved significantly since its introduction.

Today, eligible companies can raise up to $5 million during a 12-month period through a Reg CF offering.

This increase — from the original $1.07 million cap raised in the SEC's 2020 amendments — has made Regulation Crowdfunding a viable fundraising option for startups that previously would have relied exclusively on angel investors or venture capital firms.

For context, $5 million is a meaningful seed or pre-seed round that can meaningfully move the needle for an early-stage company.

Real-World Examples of Reg CF in Action

Some of today's most recognized companies got their start — or raised meaningful capital — through equity crowdfunding under Reg CF. Here are a few standout examples:

Mercury

Mercury, the banking platform for startups, raised money through an early crowdfunding round that gave their community of users a stake in the company. Their approach demonstrated a powerful principle: when your customers are also your investors, they become your most motivated advocates.

Mercury's raise was structured as a SAFE (Simple Agreement for Future Equity), a common instrument used in Reg CF offerings that gives investors the right to convert their investment into equity at a future priced round. Their campaign attracted thousands of individual investors — many of whom were Mercury customers — turning a transaction-based relationship into an ownership-based one.

This is the same dynamic that makes Reg CF so compelling: instead of relying purely on institutional capital, you can turn your user base into a shareholder base.

Wefunder's Own Raise

Wefunder, one of the largest equity crowdfunding platforms in the U.S., famously raised over $10 million from more than 5,000 investors through its own Reg CF campaign. This meta-example — a crowdfunding platform raising from the crowd — became one of the most cited success stories in the space.

Republic and Community-Backed Startups

Republic has facilitated hundreds of Reg CF raises across consumer brands, fintech companies, gaming studios, and climate tech startups. Notable companies that have raised on Republic include Monogram Technologies, Driveway Finance, and Rally (the collectibles investment platform).

Consumer Brands Using Community Raises

Beyond fintech, consumer brands have found particular success with Reg CF. Companies in food & beverage, retail, and wellness have used crowdfunding campaigns to simultaneously raise capital and generate word-of-mouth marketing — turning every investor into a brand ambassador. This dual function is one of the most underrated advantages of running a Reg CF campaign, which we explore further in The Building in Public Feed for Startup Investing.

Who Can Invest in Reg CF Offerings?

One of the biggest advantages of Reg CF is accessibility.

Both accredited and non-accredited investors can participate.

This means:

• Customers can invest in brands they love.
• Communities can support local businesses.
• Everyday investors can gain access to startup investing opportunities that were previously locked behind accreditation requirements.

This democratization of investing is one of the primary reasons equity crowdfunding has grown so rapidly in recent years. As we've written in Early Crowdfunding Changes Everything, the structural shift toward retail participation in early-stage investing is still in its early innings.

Investment limits for non-accredited investors are set by the SEC and calculated based on your annual income and net worth. You can review current limits on the SEC's Regulation Crowdfunding page.

Benefits of Reg CF for Startups

Access to More Investors

Traditional fundraising often limits founders to a relatively small network of investors.

Reg CF allows startups to market their offerings to a much broader audience. This is especially powerful for founders who build in public — the community you've already built becomes your most natural investor base.

Turn Customers Into Investors

Some of the most successful crowdfunding campaigns convert loyal customers into shareholders.

When customers become investors, they often become stronger advocates for the brand. Mercury's raise is the clearest proof of this: their investors were already using Mercury for banking, so they had a direct stake in the product's success.

Reduced Dependence on Venture Capital

Not every startup is a fit for venture capital.

Reg CF gives founders an alternative way to access growth capital while maintaining greater control over their fundraising process. This is particularly relevant for founders operating in markets that VC firms may overlook — a topic we cover in The Gap in Startup Fundraising No One Talks About.

Marketing and Fundraising at the Same Time

A successful Reg CF campaign can generate:

• Brand awareness
• Media coverage
• Customer engagement
• Community growth

This makes crowdfunding both a fundraising and marketing tool. Platforms like FishTank take this further by letting founders post ongoing video updates — turning the entire raise into a public-facing content engine. Read more about this in What Is Building in Public?

Benefits of Reg CF for Investors

Access to Startup Investments

Historically, startup investing was restricted to wealthy individuals and institutional investors.

Reg CF gives everyday investors access to opportunities that were previously unavailable. You no longer need to know the right people or have an eight-figure net worth to get in early.

Support Companies You Believe In

Many investors participate in Regulation Crowdfunding because they want to support products, founders, and missions they care about.

This emotional alignment creates a different kind of investor — one who is often more patient, more loyal, and more likely to spread the word about a company.

Portfolio Diversification

Some investors use equity crowdfunding as a way to diversify beyond traditional investments such as stocks and bonds. Spreading smaller amounts across multiple early-stage companies — rather than writing one big check — has become a popular strategy among retail investors active on platforms like Wefunder, StartEngine, and Republic.

Reg CF vs. Traditional Venture Capital

While venture capital remains an important source of startup funding, Regulation Crowdfunding offers founders an alternative path to raising capital. For a detailed side-by-side comparison of specific platforms, see FishTank vs. Wefunder: Which Is Better for Founders?

According to research from the Harvard Business Review, VC firms rely heavily on referrals and trusted networks — a structural bottleneck that Reg CF directly addresses by opening the process to anyone.

What Are the Risks of Reg CF Investing?

Like all startup investments, Reg CF investments carry risk.

Investors should understand that:

• Startups can fail.
• Shares may be illiquid — unlike public stocks, you cannot easily sell your stake.
• Returns are not guaranteed.
• Investments can take years to mature, if they return capital at all.

Before investing, individuals should carefully review all offering documents and conduct their own due diligence. The SEC's investor education resources are a good place to start.

Is Reg CF Right for Your Startup?

Reg CF may be a good fit if you:

• Have an engaged customer base
• Want to raise capital from your community
• Need an alternative to venture capital
• Have a compelling story that resonates with investors
• Want to combine fundraising with brand building

Companies with strong communities and consumer-facing products often perform particularly well in equity crowdfunding campaigns.

If you're figuring out how your startup fits into the broader entrepreneur investment process, Reg CF can be one powerful piece of a larger fundraising strategy.

For founders who want to understand what a modern raise looks like in practice — including how to attract investors on digital pitch platforms — we've written a full guide on that too.

Frequently Asked Questions About Reg CF

What does Reg CF stand for?

Reg CF stands for Regulation Crowdfunding, an SEC exemption that allows private companies to raise capital from the general public. It was established under Title III of the JOBS Act.

Can anyone invest in Reg CF offerings?

Yes. Both accredited and non-accredited investors can participate, subject to investment limits and applicable regulations set by the SEC.

How much can a company raise through Reg CF?

Eligible companies can raise up to $5 million during a 12-month period, following the SEC's 2020 rule amendments.

Is Reg CF the same as equity crowdfunding?

Reg CF is one of the primary legal frameworks that enables equity crowdfunding in the United States. Other related frameworks include Regulation A+ (which allows raises up to $75 million) and Regulation D (which is limited to accredited investors).

What is Form C and do I need one?

Yes — Form C is a mandatory SEC disclosure document required for every Reg CF raise. It includes your financials, team information, risk factors, and use of funds. Filing a strong Form C is essential to investor confidence and campaign conversion. You can generate one with our free Form C tool.

Where do I find investors for a Reg CF raise?

Reg CF campaigns still benefit from lead investors and early momentum from angels and VCs who invest at your stage. Our VC & angel investor database is a free, searchable directory of 18,000+ firms and 35,000+ angels by stage, sector, and location.

Which platforms support Reg CF raises?

The most widely used Reg CF platforms include Wefunder, StartEngine, Republic, and Mainvest. FishTank is building the next generation of this model — focused on video-first discovery and building in public — so founders don't have to rely on static campaign pages to get investor attention.

Final Thoughts

Reg CF has fundamentally changed startup fundraising.

By allowing everyday people to invest in private companies, Regulation Crowdfunding has opened new opportunities for both founders and investors.

For startups, Reg CF provides access to capital, community engagement, and increased brand awareness. For investors, it offers the opportunity to support and invest in emerging businesses before they become household names.

Companies like Mercury have shown that when you build a product people love, your users can become your investors — and your most powerful growth engine.

As equity crowdfunding continues to grow, Regulation Crowdfunding is likely to remain one of the most important fundraising tools available to startups and small businesses.

Ready to explore how FishTank approaches startup fundraising and investor discovery? Join the pre-beta and see it in action.