Company FAQs

Due to U.S. laws and regulations regarding equity crowdfunding, Highlander only supports U.S. based companies to raise on the platform.

Only Limited Liability Companies (LLCs) and C-Corporations can run campaigns on Highlander.

The time to launch on the platform typically takes 2-6 weeks.

We pride ourselves on a streamlined application process to make raising capital easy for your company. The process consists of a few steps:

• Fill out the company application form.
• Highlander reviews your application.
• Video call interview.
• Approval or rejection.

Once you're approved, you'll have access to your Highlander dashboard, where you can begin setting up your raise, including your offering details and virtual business pitch. If any additional information is needed during review, our team will be in touch.

To raise on Highlander, your company must be based in the United States, be organized as an LLC or C-Corporation, and have a principal officer who is at least 18. Certain business types are not eligible. The best first step is to submit an application or book an intro call, and our team will walk you through eligibility and next steps.

Equity crowdfunding is a process for companies to raise capital from every-day people in exchange for equity in their company. Companies can then use the funds raised to continue growing their business. Investors in the company get to come along for the ride as the company grows and develops.

Companies running a raise on Highlander can offer equity to investors, SAFEs, debt, or convertible notes.

On Highlander, you have the ability to set your own valuation for your funding round. However, it is critical to the success of your offering to have an accurate valuation. The more accurate your valuation is, the more likely you'll achieve a successfully funded raise.

The time it takes to complete a successful raise varies. A typical raise lasts 60–90 days, though a raise can run for up to a year. A longer raise doesn't mean your funds are held until it closes. Once you've met the 21-day minimum offering period and reached your minimum funding goal, you can complete rolling closes and access capital as it comes in, rather than waiting for the raise to close.

Under Regulation Crowdfunding, a company can raise up to $5 million in a 12-month period. The financial disclosures you must provide scale with the amount you raise:

• $124,000 or less: financial statements and tax-return information certified by your principal executive officer.
• More than $124,000, up to $618,000: financial statements reviewed by an independent public accountant.
• More than $618,000: audited financial statements — with one exception: first-time Reg CF issuers need only reviewed statements up to $1,235,000, above which an audit is required.

If reviewed or audited statements are already available, you must provide those.

Most raises on Highlander run under Regulation Crowdfunding (Reg CF), which lets you raise up to $5M from the public. Depending on your goals, Reg A or Reg D may fit better, and some companies run a Reg CF round alongside a Reg D sidecar for larger accredited checks. Our guide comparing the exemptions can help you find the right fit.

Yes. Testing the waters is a way to gauge investor interest in your offering before you formally launch, and it's permitted under SEC rules. You share a preview of your opportunity and collect non-binding indications of interest, so you can measure demand and build momentum before committing to a full raise. No money changes hands during this stage. Talk to our team about testing the waters for your raise.

There are two kinds of cost to plan for: Highlander's fees and third-party costs.

• Highlander's fees: a $5,000 up-front fee plus 4.9% of the funds you raise. Highlander may offer discounts to eligible raises.
• Third-party costs: under Regulation Crowdfunding, you can begin raising at no up-front third-party cost if you're raising $124,000 or less. Above that, you'll need reviewed or audited financials from an independent accountant, which typically run $2,000–$10,000 depending on the size and complexity of your raise.

Your company may elect to disburse funds multiple times during your raise. The regulation, however, requires that your raise has been active for at least 21 days and that you exceeded your minimum funding goal in "cleared funds" and Credit Card commitments. Once you have achieved these milestones, you may collect capital as it comes in.

As an issuer, you're required to disclose specific information, including: information about your officers, directors, and owners of 20% or more; a description of your business and the use of proceeds; the price of the securities or how it's determined; your target offering amount and deadline; whether you'll accept over-subscriptions; certain related-party transactions; and a discussion of your financial condition and financial statements. You'll also have ongoing annual reporting obligations after the raise.

If your raise doesn't reach its minimum funding goal by the deadline, the offering doesn't close, and all investor commitments are automatically cancelled and refunded within five business days. You don't receive any funds. Setting a realistic minimum goal is one of the most important decisions in structuring your raise.

After a successful Reg CF raise, you must file an annual report (Form C-AR) with the SEC within 120 days of your fiscal year-end and post it on your website. You're also expected to keep investors informed of your progress. These reporting obligations continue until you meet one of the SEC's conditions for stopping, such as falling below certain holder or asset thresholds.

Traditionally, each investor would appear as a separate line on your cap table. If you'd prefer to keep it cleaner, you have options. Since a 2020 SEC rule change (effective 2021), Reg CF issuers can use a crowdfunding vehicle (a type of SPV) that holds all participating investors as a single line on your cap table, subject to specific conditions. A SAFE can also keep funds on a single line until the investments convert into equity later. Which approach fits depends on your goals.

After your raise on Highlander, you can either manage your shares yourself or use a transfer agent to maintain your cap table and records. Highlander offers SEC-registered transfer agent services through Highlander Fortress, LLC (Highlander Fortress for short), so your cap table stays clean and audit-ready as your investor base grows.

If you raise under Regulation Crowdfunding, using an SEC-registered transfer agent is one of the conditions of the Rule 12g-6 exemption, which keeps a large number of crowdfunding investors from pushing you into full SEC reporting under Section 12(g). In practice, most Reg CF issuers should have a registered transfer agent in place. Highlander provides this through Highlander Fortress.

A crowdfunding vehicle is a special type of SPV that pools your Reg CF investors into a single entity, so they appear as one line on your cap table instead of hundreds. It's allowed under SEC Rule 3a-9, subject to strict conditions. It can simplify your cap table, but not every company needs one. Our guide explains how they work and when they make sense. Highlander can help set one up through SPV services when it makes sense.