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What Does It Cost to Raise Capital with Equity Crowdfunding?

Equity crowdfunding provides startups with a means to raise capital from thousands of everyday investors. But running a successful campaign isn’t free. You’ll need to budget across three main areas: platform fees, marketing, and legal/compliance.

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Platform Fees

Campaigns must run on a FINRA-registered portal, such as StartEngine, Wefunder, or Republic. These portals take a percentage of your raise.

• Success fee: 6%–8% of funds raised.

• Equity fee: 1%–2% of the equity raised on some platforms.

• Transaction fees: 2%–3% for credit card or ACH processing.

On a $1 million raise, expect $80,000–$120,000 in platform-related costs.

Marketing Costs

The most significant driver of success is marketing. Platforms provide the stage, but it’s up to you to bring the audience.

• Agency retainers: $10K–$25K per month.

• Paid ads: $25K–$75K+ depending on your raise size.

• Content production: Videos, webinars, emails, and social campaigns. Each requires compliance-safe scripting and follow-up funnels.

Without strong marketing, campaigns stall. With it, campaigns reach their goals.

Legal and Compliance

Regulation Crowdfunding has strict rules. Every piece of public communication must follow SEC guidelines.

• Form C and legal review: $5K–$15K.

• CPA financial review or audit: $2K–$15K.

• Compliance oversight: Ensuring disclaimers, redirects, and safe messaging across webinars, emails, and social posts.

Total Budget Ranges

Here’s what founders should plan for:

• Smaller raise ($250K–$500K): $50K–$100K in all-in costs.

• Larger raise ($1M–$5M): $100K–$300K in all-in costs.

Marketing spend is the most significant swing factor.

Key Takeaway

Equity crowdfunding makes raising capital more accessible, but it isn’t a low-cost option. To succeed, budget for fees, invest in marketing, and stay compliant—founders who plan set themselves up for a smooth, effective raise.

Ready to Plan Your Raise?

Pre-IPO Hype has helped 230+ startups build equity crowdfunding campaigns that attract investors and stay compliant. Reach out today to map your budget, set up your investor funnel, and avoid costly mistakes.