FUNDRAISING CPA SERVICES

For construction industry startups and startups in other industries

REGULATED INVESTMENT CROWDFUNDING (REG-CF)

Regulation Crowdfunding, often referred to as Reg CF, is a crowdfunding method established by the U.S. Securities and Exchange Commission (SEC) under Title III of the Jumpstart Our Business Startups (JOBS) Act. It allows small businesses and startups to raise capital from a large number of individual investors online through SEC-registered intermediary, either a broker-dealer or a funding portal. This regulation was enacted to make it easier for entrepreneurs to access funding and for everyday investors to participate in early-stage investment opportunities.

Financial Statement Audits

  • Raise more than $618K

  • 2-Year financial statements audited by an independent CPA*

  • Provide reasonable assurance that the financial statements are fairly presented and in accordance with GAAP

  • Assurance Level: Reasonable

  • More extensive, including testing of internal controls and substantive procedures on transactions and account balances.

Financial Statement Reviews

  • Raise between $124K - $618K

  • Raise between $618K - $1.235M (first time issuers only)

  • 2 Year Financial statements reviewed by independent CPA*

  • Provide limited assurance that the financial statements are fairly presented and in accordance with GAAP.

  • Assurance Level: Limited

  • Less extensive, including inquiries and analytical procedures.

*Financial statements must cover the most recently completed fiscal years or period(s) since inception, if shorter.

REGULATION A/A+ (REG-A)

Regulation A provides an exemption from the registration process for public offerings. This regulation comprises two offering tiers: Tier 1, which allows offerings of up to $20 million within a 12-month timeframe, and Tier 2, designed for offerings of up to $75 million over the same period. For offerings not exceeding $20 million, companies have the option to choose between the requirements of Tier 1 or Tier 2.

Both Tier 1 and Tier 2 offerings have certain fundamental requirements in common, which encompass company eligibility criteria, provisions for disqualifying bad actors, disclosure obligations, and related aspects. However, Tier 2 offerings come with additional requirements, such as restrictions on the maximum amount a non-accredited investor can invest in a Tier 2 offering, the mandate for audited financial statements, and the obligation to file ongoing reports. Importantly, issuers conducting Tier 2 offerings are not compelled to register or seek qualification of their offerings with state securities regulators.Button

TIER 2

  • Raise up to $75M in 12 months

  • Annual, Semi-annnual, and Current Reports

  • 2-Year Financials Audited by a CPA*

  • Bluesky Exemption

  • Provide reasonable assurance that the financial statements are fairly presented and in accordance with GAAP

  • Assurance Level: Reasonable

  • More extensive, including testing of internal controls and substantive procedures on transactions and account balances.

TIER 1

  • Raise up to $20M in 12 months

  • Annual, Semiannnual, and Current Reports

  • 2-Year Financials Prepared by a CPA*

  • State by state registration required

  • Provide reasonable assurance that the financial statements are fairly presented and in accordance with GAAP

  • Assurance Level: Reasonable

  • More extensive, including testing of internal controls and substantive procedures on transactions and account balances.

*Financial statements must cover the most recently completed fiscal years or period(s) since inception, if shorter.

SOC 2 READINESS

Obtaining a SOC 2 can provide significant benefits to startups seeking funding. It demonstrates a commitment to robust security and data privacy practices, enhancing trust and credibility with potential investors. A SOC 2 can offer a competitive advantage in a crowded investment landscape, reduce due diligence burdens, and mitigate risks associated with data breaches and regulatory fines. A SOC 2 can open doors to a broader pool of investors, particularly institutional investors with strict security and compliance requirements. Additionally, it aligns startups with market trends, as data security and privacy concerns continue to mount.

SOC 2 ATTESTATION READINESS

  • SOC 2 Insights and Roadmap

  • Scope Identification

  • Policies and Controls Guidance

  • GAP Analysis and Remediation Recommendations

RNB Capital LLC

Tamarac, Florida, 33321

954-228-0549

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