Crowdfunding

Crowdfunding is the practice of raising capital from a large number of individual Investors through an online platform, typically in smaller amounts per Investor. In the securities context, Regulation Crowdfunding (Reg CF) is the SEC framework that allows companies to raise up to a specified maximum from both accredited and non-accredited Investors through registered intermediaries.

GigaStar utilizes Reg CF to facilitate Channel Revenue Token (CRT) offerings, enabling Creators to raise capital from their fan communities and other Investors. This approach democratizes access to Creator Economy investments, allowing participation at accessible minimum investment amounts rather than restricting opportunities to institutional or high-net-worth Investors.

The crowdfunding process on GigaStar Market begins when a Creator files a Form C with the SEC disclosing the terms of their CRT offering. Once approved, the offering is listed on GigaStar Market, where Investors can review the offering documents, assess the Creator's channel metrics and historical revenue, and make investment decisions.

Reg CF crowdfunding comes with important Investor protections. These include mandatory disclosure requirements through Form C filings, SEC-mandated investment limits for non-accredited Investors, a required cooling-off period during which Investors can cancel their commitments, and the requirement that offerings be conducted through a registered funding portal or broker-dealer.

It is important to distinguish securities crowdfunding from reward-based crowdfunding platforms. CRT offerings are regulated securities, and Investors receive a contractual right to a share of future YouTube revenue through Monthly distributions, not merchandise or early product access.