Equity Crowdfunding – Step by Step guide

By Hassan Syed

  • Establish Location – When the company should be registered
  • Form Legal Structure – Decide which type of company would you register
  • Bad Actor Questionnaires
  • 1st Written Actions
  • Articles of Incorporation
  • Bylaws
  • Register Business
  • Get Tax ID from IRS
  • Register for state and local taxes
  • Obtain any licenses you need to start your business


  • Business Plan
  • Three years quarterly milestones
  • Set fundraising goals
  • Set campaign budget and make sure that you have means to carry out the whole campaign
  • Chose the capital type, Common Shares, Preferred Shares, Convertible Debt,
  • Determine a deadline
  • Decide the platform to run the campaign on. Contact IdeaGist for listing through our partners.
  • Executive Summary and Pitch Deck


  • Written Actions to Approve Offering
  • Waiver(s)
  • Develop and Private Placement Memorandum (PPM)
  • Develop a shareholder agreement between the founders and the company
  • Develop a non-disclosure and non-compete agreement of founders and early employees
  • Review and Revise Business Plan
  • Draft Risk Factors
  • Review Articles / Bylaws / Shareholder Agreements
  • Subscription Agreement
  • Review Financial Statements
  • Cap Table
  • Table of Use of Proceeds, where the money will be used
  • Form C
  • Develop a vesting agreement template for all founders and initial employees
  • Spend time understanding solicitation laws, who can you contact, what can you promise,
  • File with state securities and SEC

Equity Crowdfunding Check List for Getting Ready

Branding and Marketing

  • Logo and brand sheet
  • Company Website
  • Product Video for potential customers
  • Social Media Accounts, focus on the ones that are relevant
  • PR Strategy and press releases

Crowdfunding Campaign

  • Prepare a list of people in close family and friends that will propel the campaign initially
  • Create your company profile
  • Create your own profile and all other team members. Make sure there are good pictures and their past achievement are highlighted in the context of your
  • Prepare a list of contacts that could potentially be an investor. Ask all team members to add their network to the
  • Develop an intro email message
  • Develop a simple elevator pitch for people you know
  • Have a shoURLurl using one of the services to be able to tell people where to go, ideally build a campaign card with the QR code for people to go to the campaign page directly
  • Develop a two-page concept note in simple language
  • Develop multiple social media banners
  • Clearly identify the audience for your crowdfunding campaign get ready to run targeted ads campaign
  • Start the campaign