b'9. Determine How You Will Solicit Investorsby private issuers, without the issuer having to be registered as a bro-ker-dealer, or having to hire one to sell their securities. Capital markets in the U.S. have evolved to take advantage of these rules. A short history is required to understand crowdfunding, as the term is used in todays capital markets.Historically,thetermscrowdfundingandcrowdsourcinghavebeen used to describe a non-profit, rewards-based scenario, where persons seek donations or backers to fund artistic endeavors such as writing a book or producing a film in exchange for a token gift related to the project (for example, being listed in the film credits, tickets to a preview, or getting an advance copy of the book). Popular websites such as Kickstarter.com and Indiegogo.com list these types of crowdsourcing offerings. Another type of crowdsourcing is micro-loans, such as those offered by Kiva.com.RegulationCrowdfunding(RegulationCF)is a securities exemption that allows advertising for investors on the internet for raises of up to $1 million in a 12-month period. Regulatory requirements make the costs of Regulation CF somewhat onerous. These regulations include certain re-quirements such as drafting an offering disclosure document prescribed by the SEC or a state securities regulator, contracting with a funding por-tal, complying with financial reporting and fulfilling filing requirements. Such requirements may make Regulation CF one of the most costly means of fundraising yet. Separate Regulation CF offerings must be used to raise money for one investment opportunity at a time. As one example, the initial rules didnt contemplate use of Regulation CF for an ongoing fix-and-flip fund, hard money loan fund or blind pool offering. Others are now using the term crowdfunding to describe any form of advertising for investors allowed under Rule 506(c), which allows adver-tising for verified accredited investors; or Regulation A+ offerings, which are public, for-profit offerings with limited reporting requirements.The discussionbelow focuses on crowdfunding forRule506(c) and Regulation A+ Offerings. Advantages of CrowdfundingCrowdfunding offers a means for issuers of Rule 506(c) or Regulation A+ securities offerings to reach a wider audience of potential investors with whom to build new relationships. Many issuers lose sight of their objective, which is not to fund only one deal. The objective is to widen 101'