Discussing a raise can be tricky with the guidelines that the SEC has in place regarding what you can (and can't) say. The information below will serve as a great resource we recommend every company continually refer to throughout their time on StartEngine.

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Compliant Communication Overview

All companies should refer to StartEngine's guide to help navigate compliant communications before and during your raise. ****("What Can I, and What Can I Not Say, When Talking About My Reg CF Campaign?")

For the most comprehensive guide to compliant communications, companies can also review Crowdcheck's guide. ("Communications and publicity by issuers prior to and during a Regulation CF Offering")

Reg CF and Reg A Compliance Guidelines for Issuer-Distributed Marketing Materials

In response to feedback and in alignment with regulatory best practices, we have implemented a comprehensive Training and Surveillance Program that equips issuers like you with the knowledge needed to create compliant advertising content independently.

Under this program, you are not required to submit advertising material created and distributed by your company for review prior to use.

However, you must still submit any materials that are hosted on or distributed through StartEngine, including Campaign Updates, as well as any advertisements that StartEngine assists in creating, manages, or sponsors.

What Does This Mean for You?

  1. Autonomy: With our training program, you will receive all the resources and guidance needed to understand the regulatory requirements under Regulation Crowdfunding (Reg CF) or Regulation A+ so that you can confidently create and distribute your own marketing materials.
  2. Supervision: While we will no longer review every piece of content before distribution, our team will conduct surveillance of advertising materials to ensure compliance. If any issues arise, we will provide timely feedback to help you address them. However, if non-compliant content is detected on multiple occasions, you may be placed on an enhanced diligence path, requiring you to submit all future advertising materials for review until compliance is consistently demonstrated.
  3. Velocity: This new approach not only empowers you with the tools to manage your advertising content but also streamlines the approval process, reducing delays and allowing you to engage with your audience faster.

Top 3 Most Common Issuer Compliance Errors to Avoid

To help you avoid compliance escalations or enhanced review, please focus on these common mistakes:

  1. Missing the required disclosure Every marketing material must include:

    "This Reg CF offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment."

  2. Lack of balancing statements When making forward-looking statements (such as projections, growth claims, "we expect," or "we plan to launch"), you must include disclaimers that clearly state these statements are subject to uncertainty.