The key lesson I've learned over the past decade in the industry is that your campaign needs a marketing budget. I believe that with rare exceptions, a successful campaign needs a marketing budget equivalent to at least 10% of the total raise. One-third to half of that will need to be spent relatively early in the campaign.

Given this requirement, it is important to price your offering in such a way that you factor this in upfront.

From the perspective of the regulated investment crowdfunding (Reg CF and Reg A) industry, the appointment of Paul S. Atkins as SEC Chairman raises both opportunities and questions.

🔎 Perspective from the Crowdfunding Industry:

1. Pro-Market, Pro-Business Philosophy Could Mean Support for Capital Formation. Chairman Atkins has long championed capital formation and reduced regulatory burden, particularly through cost-benefit analysis. This mindset aligns well with the goals of the crowdfunding sector, which seeks to democratize capital access for startups and small businesses. His background suggests he may be open to expanding access to capital for both issuers and investors through mechanisms like Reg CF and Reg A+.

2. Track Record of Favoring Innovation—Positive for Fintech and Digital Asset Integration

Atkins’ role in developing best practices for the digital asset sector suggests he’s not afraid to engage with new technologies.

This could bode well for:

- Tokenized securities
- Blockchain-based cap tables
- Smart contract-based compliance —all areas that the crowdfunding industry is beginning to explore.

3. Potential for Regulatory Rollbacks or Modernization

Atkins has previously pushed for greater consistency and simplification in regulation. That could open the door to:

- Raising Reg CF investment and offering limits
- Reducing duplicative state filing burdens
- Streamlining ongoing disclosure requirements
- Allowing more flexible use of SPVs and follow-on offerings

4. Investor Protection vs. Market Access

However, Atkins' emphasis on cost-benefit analysis and industry flexibility may worry some investor advocates who want stronger safeguards in crowdfunding. There is a delicate balance here. The crowdfunding industry—especially responsible funding portals and associations like CfPA—will need to proactively demonstrate that investor protection and market growth can co-exist.

5. A Chance for Dialogue

Given his extensive experience across SEC leadership roles and international regulatory forums, Atkins is likely to be receptive to policy engagement. This is a valuable opening for the crowdfunding industry to:

- Push for rule modernization
- Advocate for new exemptions or refinements
- Collaborate on digital compliance infrastructure
 
📣 Final Thought:

The appointment of Paul S. Atkins could signal a more business-friendly, innovation-minded SEC. The crowdfunding industry should engage early and often, presenting data, success stories, and constructive proposals to shape a regulatory environment that protects investors without stifling innovation. If navigated well, this could be a turning point for scaling regulated crowdfunding in the U.S. capital markets.

#regulatedinvestmentcrowdfunding

There is a federal exemption for Demo Days but it is useless because it doesn't preempt state law. To legally do a demo day where the public is invited, even if the event fits under the Demo Day exemption, it will still be illegal to do public solicitation under state law (unless the offering is being done under Reg CF or Rule 506(c) in which case there is federal preemption).

C-AR in April 2024 if any sales were made in this offering. Even if sales weren't made until the day before the C-AR was due! I have a funny story about that one.

SEC Staff say that (in contrast to the way sales are treated in Reg D and PIPE transactions) the "sale" is when the obligation to pay is binding on the investor and they can't withdraw their investment.