When a company gets more investment commitments than they're allowed to close on, their campaign is "oversubscribed". Under Regulation Crowdfunding, a company can legally raise a maximum of $5M in a 12-month period. Companies may also set a lower funding goal to avoid some extra legal work.
When a round is oversubscribed, we may open a parallel round under Regulation D (Rule 506(c)) to accommodate more investments if the founder requests this. Only accredited investors qualify, and funds closed in the Reg D don't count towards the limits under Reg Crowdfunding. Investors in the Reg D receive the exact same price, terms, and contract, plus we waive our fees on those investments. Investors will receive an email notifying them if their investment is moved under Regulation D.
In an oversubscription situation, investments are accepted on a first-come, first-serve basis, unless the issuer requests a different setup.