The Howey test is a legal test used to determine whether an investment contract exists and, therefore, whether certain securities laws apply. The test is named after a U.S. Supreme Court case called SEC v. W.J. Howey Co., in which the Court set out a four-part test to determine whether an investment contract exists.

The four elements of the Howey test are:

- There is an investment of money.
- The investment is made in a common enterprise.
- There is an expectation of profits from the investment.
- The profits are to be derived from the efforts of others.

If all four elements are present, the investment is considered to be an investment contract and is subject to securities regulation. The Howey test is used by the U.S. Securities and Exchange Commission (SEC) to determine whether a particular investment is a security and whether it must be registered with the SEC. The test is also used by the courts to determine whether a particular investment is a security and whether it is subject to securities laws.

*Written by OpenAI's ChatGPT - Not Legal Advice* 

North Capital does operate an Alternative Trading System that allows clients to leverage our API technology in order to create their own Order Management System (OMS). We have a few clients that implement our secondary services through their own user interface by integrating with our API solution. You can always reach out to a North Capital representative in order to discuss in more detail.

Rewards-based crowdfunding and investment crowdfunding are two different ways that people can use crowdfunding platforms to raise money for a project or venture. In rewards-based crowdfunding, backers of the project receive a reward, such as a product or service, in exchange for their support. In investment crowdfunding, backers receive equity in the company or a financial return on their investment.

*Written by OpenAI's ChatGPT* 

The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the securities industry and overseeing broker-dealers in the United States. Part of this responsibility includes granting licenses to firms that want to operate as crowdfunding portals under Regulation Crowdfunding (Reg CF), which is a set of rules issued by the U.S. Securities and Exchange Commission (SEC) that allows small businesses to raise capital from a large number of investors through the internet. Because Reg CF is a federal regulation, it is up to FINRA to ensure that firms seeking to operate as crowdfunding portals meet the necessary requirements and are in compliance with the rules set forth by the SEC.

*Written by OpenAI's ChatGPT* 

Yes, it is possible that AI could have an impact on the field of investment crowdfunding. AI can be used to process large amounts of data quickly and accurately, which could be useful for analyzing potential investment opportunities and making predictions about their success. Additionally, AI could be used to automate many of the tasks involved in managing a crowdfunding campaign, such as identifying potential investors and tracking progress toward fundraising goals. However, it is also important to consider the potential drawbacks of using AI in this context, such as the potential for bias in decision-making and the need for effective regulation to protect investors.

*Written by OpenAI's ChatGPT* 

Crowdfunding has become a mainstream form of finance for real estate.

You can learn more about how in my new book, UNLEASHED, that you can access here, and in this article here that includes a link to a conversation I had with Tore Steen, founder and CEO of CrowdStreet.

@Brian Belley, @Jenny Kassan and @Sara Hanks, I wonder if you have thoughts about where to incorporate a benefit corp.

This is a great question! @Brian Belley recently told me that the average investment via Reg CF is about $750. That suggests there is some room to budget for marketing. On the other hand, investors plopping down $100 leave very little room. I hear ranges of from 10 to 30% for marketing budgets. Using 20% against the average of $750 would suggest the cost of investor acquisition is $150--far more than a common $100 minimum investment. I hope Brian or others can add more color to this conversation.