In equity crowdfunding campaigns, such as investment offerings using Regulation A or Regulation CF, SEC regulations require all funds to be processed and managed by a 3rd party escrow account. In Regulation CF, funds are required to remain in escrow until the funding goal is achieved. In Regulation A, funds must still process through an escrow account, but in most cases, can be dispersed to the issuer throughout the raise.
In both Regulation A and Regulation CF, the actual funding portals that act as the gateway for investors to purchase the securities, are not allowed to touch any of the funds. As such, a third-party escrow company is used so that both national and state-specific equity crowdfunding regulations are met.