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How do oversubscriptions work?
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 open a parallel round under Regulation D (Rule 506(c)) to accommodate more investments. Only accredited investors qualify, and funds closed in the Regulation D round don't count towards the limits under Regulation Crowdfunding. Investors in the Regulation D round receive the exact same price, terms and contract, and we also waive our fees on those investments. Investors will receive an email notifying them if their investment is moved under Regulation D.