What are the fees associated with a Reg CF campaign?
It can be hard for startups and small companies to pay the large fees sometimes required to raise capital. However, in the case of Regulation Crowdfunding offerings, there is a way to raise up to $1.07M with very little out-of-pocket costs.
As of April 1, 2019, all new Regulation CF campaigns will have the following fees:
- 7% of the amount raised via domestic ACH transfers and Wires taken out at the time of the disbursement(s)
- 9% of the amount raised at the time of the disbursement(s) for international investors (outside of the United States) and 12% for International credit cards
- 11% of the amount raised via Credit Card at the time of the disbursement(s)
- 50 basis points of funds committed as a cash management fee taken by the escrow agent
- $10,000 Service Fee which includes Account Management and Campaign Strategist support, deferred and taken out of the campaign's first disbursement.
StartEngine covers all of the remaining escrow fees, accounting fees, Anti-Money Laundering checks, transaction fees, and disbursement fees.
These fees do not include Bad Actor Checks or special exceptions such as check returns for non sufficient funds, or credit card chargebacks.