As regulations around investing in startups continue to be refined, the ability to raise equity based financing from the crowd — or Reg CF for shorthand — has become a new opportunity for startups to find the funding they’re seeking by tapping both accredited and unaccredited investors, legally. Today, Portland’s Customer.io tested the Reg CF waters and it looks like that water is just fine. They’re currently more than 7000% over their target and are closing in on $2 million raised on a SAFE.
According to the Portland Business Journal:
Founder and CEO Colin Nederkoorn said the company, which is growing about 75% year-over-year so far in 2021, doesn’t need the capital. Instead, this move is part of his bigger plans.
“We want to be a big and impactful company,” he said. “That might mean at some point going public, but when I look at who cares about our company (now) it’s customers and people who wish to be customers. There was no way for them to be owners until we got to a public point.”
However, recent changes in the rules surrounding equity crowdfunding that increased the total amount that can be raised made this option more attractive. Companies can now raise up to $5 million. Nederkoorn doesn’t know if Customer.io will hit the cap, but he would be pleased if they did.
For more information or to participate in this financing round, visit Customer.io on Republic.