Crowdfunding & Investment Terms
Reviewed October 11, 2026. General educational definitions for crowdfunding and private-market investing. Follow the linked regulatory sources for complete requirements.
“A” Round Financing (Series A): A named round of company financing, often involving venture capital or other early-stage investors. The security type, rights and timing depend on the company and its financing terms; “Series A” does not guarantee a particular stage of maturity or future profitability.
A (share-class designation): A label used to identify Class A shares in some companies. Voting, dividend and other rights depend on the issuer’s governing documents and offering terms; share-class labels do not have uniform rights across companies.
A Priori Probability: A probability derived from assumptions or logical analysis rather than estimated from observed data. Its usefulness depends on whether those assumptions fit the situation being analyzed.
Accredited Investor: An investor who meets one of the categories in Securities Act Rule 501(a). For individuals, common routes include net worth above $1 million excluding the primary residence, or income above $200,000 individually or $300,000 with a spouse or spousal equivalent in each of the prior two years, with a reasonable expectation of reaching the applicable income level in the current year. Other routes include designated professional licenses held in good standing, certain roles at the issuer, and qualifying private-fund or family-office relationships. Different tests apply to entities. The current designated licenses include Series 7, Series 65 and Series 82; passing an exam alone is not necessarily sufficient. See the SEC’s accredited-investor overview and its guide to the additional qualification categories.
Angel Investor: An individual who invests personal capital in a business, commonly at an early stage. Angels may invest alone or alongside other investors. Venture capital fund managers generally invest capital supplied by their funds’ investors.
Angel Capital Association (ACA): A professional association supporting angel investors through education, research, networking and public-policy advocacy. See Angel Capital Association.
Broker-Dealer: A person or firm in the business of effecting securities transactions for others, dealing in securities for its own account, or both, subject to applicable registration requirements and exceptions. A registered broker-dealer may act as the intermediary in a Regulation Crowdfunding offering; a funding portal has a more limited permitted role.
Crowdfunding: Raising funds from many contributors or investors, often through an online platform. Donation and reward campaigns differ from investment crowdfunding, where investors purchase securities such as equity or debt. Offers and sales of securities must comply with applicable securities laws, including registration requirements or an available exemption. Regulation Crowdfunding, Regulation A and some state crowdfunding frameworks are distinct paths with different requirements.
CrowdFund Intermediary Regulatory Advocates (CfIRA) — historical reference: An industry advocacy group referenced in early discussions about implementing securities crowdfunding under the JOBS Act. The name is retained here as historical industry context.
Crowdfunding Professional Association (CfPA): A U.S. nonprofit trade association supporting issuers, investors, regulated intermediaries and other crowdfunding professionals through education, advocacy and industry engagement. See About CfPA.
European Business Angels Network (EBAN): A European association serving the early-stage investment community, including business angels and seed funds. See EBAN.
Intermediary: In Regulation Crowdfunding, the registered broker-dealer or funding portal through which an offering is conducted. Other securities-offering frameworks have different intermediary requirements. See the SEC’s Regulation Crowdfunding overview.
Issuer: The company or other entity that issues or proposes to issue a security. In investment crowdfunding, investors purchase securities offered by the issuer under the terms disclosed for the offering.
JOBS Act: The Jumpstart Our Business Startups Act, signed into law on April 5, 2012. Its provisions address several capital-raising paths. Title III established the securities-crowdfunding exemption implemented through Regulation Crowdfunding. The principal Regulation Crowdfunding rules became effective on May 16, 2016; implementation is no longer awaiting the original rulemaking. See the SEC’s adopting release.
Management Fee: A fee charged for managing investments or a fund. Its amount, calculation method and covered services depend on the agreement and disclosures. Management fees are distinct from performance-based compensation.
National Angel Capital Organization (NACO): Canada’s industry association for angel investors, supporting the early-stage investment ecosystem. See NACO.
Portal (Funding Portal): A registered intermediary that operates a platform for Regulation Crowdfunding offerings. Funding portals cannot provide investment advice or recommendations, or hold or handle investor funds or securities; their activities are more limited than those of broker-dealers. See FINRA’s funding portal directory and FINRA’s funding portal rules and definitions.
Private Equity: Ownership interests in companies whose shares are not publicly traded. The term can also refer to investment strategies and funds focused on such companies. Private securities may have significant resale restrictions and limited liquidity.
Society for Corporate Compliance and Ethics (SCCE): A professional organization serving the compliance and ethics community. See SCCE.
World Business Angel Association (WBAA) — historical reference: An international association of national business-angel federations described in CfPA’s original glossary. This entry preserves that historical reference and does not represent a current membership directory.
Brian is the Founder of Crowdwise, LLC, and is an angel investor in 80+ private startups through equity crowdfunding.
Jenny Kassan has almost three decades of experience as an attorney and advisor for mission-driven enterprises. She has helped her clients raise millions of dollars from values-aligned investors and raised over $3 million for her own businesses.
Over 35 years of experience in Information Technology with the majority of time being spent in the Financial Services industry. Possesses detailed knowledge of all aspects of the online capital formation/crowdfunding, international brokerage, hedge fund and asset management businesses. Able to recruit and motivate strong teams capable of solving mission critical business problems.
Devin is a journalist, author and educator. He calls himself a champion of social good. As a new-media journalist and founder of the Your Mark on the World Center, Devin has established himself as a champion of social good. As a Forbes contributor, with over 400 bylines and over
Vincent Molinari is the CEO of Templum Markets, (FINRA Registered Broker Dealer and ATS) and Co-Founder of it’s parent company, Templum, Inc. He is also a Co-Founder and Co-Chair of the Blockchain Commission for Sustainable Development and is a Co-Founder and Co-Chair of Blockchain for Impact.
Blaine McLaughlin is the Chief Product Officer of VIA Folio, an innovative IPO, private and alternative investment platform that makes it easy for online platforms, issuers, investors, brokers and advisors to engage with IPOs, private and alternative debt and equity offerings. Part of Folio Investments, Inc., VIA Folio supports issuance, custody, servicing and secondary transactions in public and private equity and debt investments, and other listed and unlisted securities. McLaughlin joined the company in 2007, and has led retail customer acquisition and management, partnerships, portfolio acquisition, introducing broker services, and other business development activities.
Sara Hanks, Founder and CEO of CrowdCheck, is an attorney with over 30 years of experience in the corporate and securities field. CrowdCheck provides due diligence, disclosure and compliance services for online capital formation. Its services help entrepreneurs and project sponsors through the disclosure and due diligence process, give investors the information they need to make an informed investment decision and avoid fraud and help intermediaries avoid liability.
David N. Feldman concentrates his practice on corporate and securities law and mergers and acquisitions, as well as general representation of public and private companies, entrepreneurs, investors, and private equity and venture capital firms. Mr. Feldman also advises emerging growth companies with regard to alternatives to traditional financing through initial public offerings. He is also considered an authority on public offerings through the recently implemented SEC Regulation A+. Mr. Feldman also represents investors, social media sites, public and private issuers and applicants for grow and dispensary licenses in the emerging cannabis industry.
Jason Paltrowitz is Executive Vice President and Global Head of Business Development at OTC Markets Group, where he is responsible for all international and domestic corporate services new business and relationship management. Prior to joining OTC Markets in October 2013, Mr. Paltrowitz was Managing Director and Segment Head at JP Morgan Chase and was responsible for the custody, clearing and collateral management business in the Corporate and Investment Bank division. Mr. Paltrowitz started his career at BNY Mellon serving in multiple senior management positions, most notably as Head of M&A for the Financial Markets and Treasury Services Sector and 11 years in the Depositary Receipt Division as the Head of the Global Capital Markets Group. Mr. Paltrowitz also served as a member of the Board of Directors at OTC Markets Group from 2008 – 2011.
Patrick Tracey is Director of Business Development for Morrow Sodali. In this role, Pat brings expertise in a number of areas including Proxy Solicitation – Activism – Corporate Governance Advisory – IPO Prep – Demutualization (Insurance Companies, Community Banks and Credit Union) – Stock Surveillance for Public, Private and Mutual companies.
Xiaocheh Zhang currently serves on the CfPA Board of Directors. He is also a co-founder of the Crowdfunding China Society (CFCS). As a crowdfunding thought leader, he has advised many organizations in applying alternative finance and result-based approach in transforming their business models. He has provided services to World Bank, United Nations, TUEV SUED, Virginia Tech, Peking University and some other organizations in the past 15 years. Xiaochen has rich experience in both public and private sector in America, Africa, Asia, Latin America and Europe to incubate and scale up innovative programs and projects at all levels. He is also a recognized speaker in climate finance, green innovation and crowdfunding. Here are a few examples:
Rodney Sampson is an innovator, serial entrepreneur, angel investor, published author, and consecrated bishop. As an innovator and serial entrepreneur, Sampson co-founded Multicast Media Networks (Streamingfaith.com) in 2000 (acquired in 2010), a live and on-demand streaming platform that laid the foundation for companies like YouTube and Ustream. Not stopping there, Sampson co-founded Intellectual Currency (an integrated marketing, intellectual property, diversity & inclusion and business development advisory firm) in 2002, Intellect Inspire (a digital publishing imprint of Audible) in 2006, and Legacy Opportunity Fund in 2007 with investments in technology, consumer products, energy, cyber-security, publishing and the entrepreneurial ecosystem. He also serves on the advisory boards of Digit, a disruptive financial technology company, Mark Burnett Productions, Springboard Fund and multiple startup and early stage companies throughout the world.
Thell Woods, a former interim president of the CfPA, founded and currently serves as chairman of Crowdfunding Services LLC. The company helps establish “Community Centric Crowdfunding” programs offering both non-profit and securities offerings. Thell serves specifically defined communities throughout Michigan developing the www.C3funding.com website as the base for these programs.
Brian Korn was elected to the Board of Directors (Legal P.O.V.) of the Crowdfunding Professional Association in January 2014. Brian is a corporate and securities attorney at the law firm Manatt, Phelps & Phillips, LLP, and has had multiple appearances on Fox Business Television, Bloomberg, CCTV America and National Public Radio as an expert on the JOBS Act, including its impact on crowdfunding, peer-to-peer lending, IPOs and market trading dynamics. He has been published or quoted in Forbes, CNBC, MSNBC, New York Law Journal, Law360, Philadelphia Inquirer, Pittsburgh Post-Gazette, The Financier Worldwide and The Review of Securities & Commodities Regulation.
Thomas Lawson is vice president of private issuer services for VIA Folio, Folio’s private capital network. In his role at VIA Folio, he provides legal and regulatory guidance to business development and operations. As part of this work, he supports VIA Folio’s online transactions in unlisted securities. He joined Folio in 2015.
AdaPia D’Errico is the Chief Marketing Officer at Patch of Land, where she heads up marketing, which includes strategy, brand, communications, partnerships and client services. Prior to joining Patch of Land, AdaPia ran a consulting company that developed growth strategies for major brands at Disney and Mattel, as well as technology and new media startups. AdaPia began her career at CIBC and subsequently spent 8 years in banking and investment management with a focus on customer relationship management, investor relations, and corporate communications. AdaPia is a published writer, blogger for The Huffington Post, and is a public presenter on topics including growth strategies, entrepreneurship, crowdfunding and brand development. AdaPia holds a B.B.A from the University of British Columbia and a B.A in International Business Economics from Hogeschool Zeeland, The Netherlands.
Dara Albright is a recognized authority, thought provoker and frequent speaker on topics relating to market structure, private secondary transactions, next-gen IPOs, P2P, FinTech and crowdfinance. Albright has held a distinguished 23 year career in IPO execution, investment banking, corporate communications, financial marketing as well as institutional and retail sales.
Jordan Fishfeld is the former CEO and co-founder of PeerRealty (sold), and current Chairman of the Board and co-founder of CFX Markets and OpenFinance Network, secondary market platforms for traditionally crowdfunded and digital assets, respectively. In this role, he focuses his time on strategic planning and general oversight in the new and growing digital marketplace. With over 8 years of compliance, legal, investing, and sales experience in regulated markets, Jordan understands the need for a single coherent voice in the crowdfunding and blockchain industries.
Dr. Richard Swart is recognized as the global thought leader in the crowdfunding industry. Richard is a founding board member of the Crowdfunding Professional Association (CfPA), the Crowdfunding Intermediary Regulatory Advocates (CIFRA), and an early leader in the field. Richard co-organized the first major national conference on crowdfunding and coordinated several educational events on the JOBS Act throughout the United States for the White House.
Scott McIntyre. 2024 marked Scott’s 9th term as Chairman of the CfPA’s Board of Directors, having served in leadership since formation in 2012, including four terms as President & Chair.
Alon is the Managing Partner of Stacked Capital, an early-stage industry agnostic venture capital fund. Previously Alon was the co-founder, Chief Financial Officer, and Chief Technical Officer of crowdfunding platform RocketHub, acquired in 2015. Alon is a founding member of the Forbes Technology Council, and a Strategic Advisor to Zombie Soup (Artificial Intelligence, Virtual Reality, and games); he has twice testified in front of U.S. Congress on equity crowdfunding, co-authored three acclaimed whitepapers on the JOBS Act, and was selected to lead FINRA’s Capital Markets Series on crowdfunding. Alon oversaw RocketHub’s partnerships with the White House, U.S. Department of State, Fulbright Foundation, Cisco, Microsoft, Chrysler, and others. Alon has led large speaking engagements for organizations including American Express, TEDx, Campaign Summit, Re.Comm, and Make Innovation. Alon earned his M.Sc from Columbia University and was a fellow at the Earth Institute’s Advanced Consortium of Cooperation, Conflict, and Complexity; he specialized in genocide prevention and social network theory.