Regulation Crowdfunding: Proposed Increase from $1.07M to $5M Supports DigitalAMN’s Revenue and Cash Flow Models

Among our many services, DigitalAMN provides entrepreneurs with money to onboard, launch and market their equity crowdfunding campaigns. Perhaps more importantly, DigitalAMN offers startups and development stage companies money during Reg. CF’s version of the ‘valley of death’; the dreaded 3-6 month period it typically takes for a crowdfunding campaign to begin effectively and successfully raising money.

Recently, the Securities and Exchange Commission (SEC) proposed adjustments to Regulation Crowdfunding (Reg. CF, Title III of the JOBS Act), suggesting that the current maximum amount to be increased from $1,070,000 to $5,000,000. This is great news for the general marketplace on several fronts. For DigitalAMN, this is especially beneficial given our unique revenue model.

We fund our ‘client-companies’ during the equity crowdfunding setup stage, before they’re ready for primetime. This is for our benefit as much as theirs; it affords us the ability to help ensure that our client-companies have a solid foundation from which to grow their business. A successful capital raise positively impacts our DAMN equity portfolio with increased valuations. It also supports our short term cash flows. With an increase to the Reg. CF funding cap, we anticipate being able to both strengthen and streamline our revenue and cash flow models.  

We’re also just one step away from fully taking control of TruCrowd Services, LLC. and the timing couldn’t be more serendipitous! In acquiring a marketing company specializing in Reg. CF and Regulation A+ (Reg. A+, Title IV of the JOBS Act), not only do we secure an additional revenue stream, but with the SEC’s proposed Regulation Crowdfunding cap increase, TruCrowd Services, LLC. could potentially see substantial revenue growth. This potential growth would be due to a likely rise in Reg. CF interest from both startups and development stage companies, as well as from better established businesses wanting to raise more than $1M. 

We anticipate that the next 21 months will surely validate our business model. We firmly believe that DigitalAMN will be able to demonstrate the efficacies of the PAI ecosystem; particularly substantiating the DAMN revenue and cash flow models on the heels of this proposed regulatory action.

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