Crowdfunding is the action of raising funds from a large group of individuals (referenced as the “crowd”). Crowdfunding allows companies to solicit funds and pool investors commitments to reach a predetermined financial goal.
Equifund Ventures is a technology crowdfunding platform where entrepreneurs and investors can connect and transact in a frictionless environment. Traditionally, private companies trying to raise capital were largely limited to institutions (banks and venture capital funds) or high-net worth investors to help fund their businesses. Under Title IV of the JOBS Act, Reg A+ rules allow companies to crowdfund (debt and or equity) up to $50 million from both accredited and non-accredited investors, over a 12-month period. This allows everyone the opportunity to help fund a business from the ground up, taking advantage of potential upside otherwise limited to large firms and wealthy individuals.
Each issuer conducting a crowdfund offering is required to file an offering statement (Form 1-A) with the Securities and Exchange Commission which provides detailed and important information about the company and the terms of the subscription agreement. The Form 1-A is publicly available on the SEC’s EDGAR database https://www.sec.gov/edgar/searchedgar/companysearch.html or on the issuers funding page hosted on Equifund Ventures.
Equifund Ventures technology provides registered users with the ability to communicate directly with each company’s management as well as with other registered users. If you have any questions or concerns about an offering, we encourage you to ask the company’s management directly and retrieve the opinion of other registered users in the Equifund Ventures community.
As an investor, it’s free! Equifund Ventures does not charge its users a fee to join or invest through our technology portal.
You must be over the age of 18 to invest in Crowdfunding. Because investing in private companies is unpredictable and you risk losing your entire investment, regulators have set restrictions on how much you can invest based on your annual income or net worth.
Reg A+, tier 1 investments offer no limits on amounts invested for either accredited or non-accredited investors.
Reg A+, tier 2 investments allow non-accredited investors a maximum of 10% of income or net worth, whichever is great. Accredited investors have no limit on amount invested.
Yes, you can cancel your investment commitment up to 48 hours before the closing of an offering. The closing date is disclosed on each offering page on Equifund Ventures and the Form 1-A for each offering. Once the offering period is within 48 hours of ending, you will not be able to cancel for any reason even if you make your commitment during this period.
Investing in private companies, particularly startups and new ventures, is highly speculative and you should not invest unless you can afford to lose your entire investment amount without any change to your lifestyle. Risks include, but are not limited; (i) an issuers limited operating history, (ii) lack of liquidity or any market for the resale of your investment, (iii) possibility of fraud or misrepresentation, (iv) arbitrary valuation of the company, (v) limited shareholder rights and the possibility of dilution, (vi) inability to generate revenue or raise additional capital to fund operations. For a more detailed review of the risks associated with Equity crowdfunding please refer to our “Risk” section.
We strongly recommend that you consult with your investment advisor before investing in any offerings on the portal.
When you feel you are ready to invest and have completed your own due diligence; including reading the Form 1-A and reviewed all information on the offering page, the process of making an investment is simple. Click on the “Invest Now” button on the company’s Equifund Ventures offering page and follow the prompts. Our technology will populate the subscription agreement allowing you to electronically sign documents and even transfer funds into the third-party escrow account for the offering.
Each company is required to inform investors of any material changes to the offering terms or to the information provided to you regarding the company. If there are any material changes after you subscribed to the offering but before the closing of the offering, you will receive an email from Equifund Ventures advising that you have five business days to reconfirm your investment commitment. This will provide you with the opportunity to review the changes and either reconfirm your commitment or cancel your commitment to get a full refund. If you fail to reconfirm your investment commitment within the five-business day period, your investment commitment will automatically be refunded. Therefore, all users should carefully read all correspondence from Equifund Ventures as it may contain important information.
Crowdfunding rules require all investor commitment amounts to be held by a third-party escrow agent until offering has closed or break escrow occurs. Neither Equifund nor the issuer has access to subscriptions until the closing of the offering. The escrow agent is traditionally a financial institution (a bank) and is identified in the offering documents.
If an offering does not meet its goal or funding minimum by the deadline stated in the offering documents, your commitment will be refunded to your bank account without deductions or fees (full refund). You will also receive an email notifying you of the cancellation.
There are no restrictions on the sale of securities purchased through a Reg A+ offering. Consequently, there is no guarantee a market will exist to acquire your shares.
Users that have questions about Equifund Ventures services or technology, should contact email@example.com. If you have any questions regarding a specific offering or would like to request additional information you should contact the issuing company directly (not Equifund Ventures) by visiting the company’s offering page on Equifund Ventures and using our communication forum. Equifund Ventures does not discuss any specific offering. All offering documents are made available on Equifund Ventures.
It depends on your investment. Once the crowdfund offering closes, your investment subscription will be accepted, the issuer will counter sign any subscription documents (such as Subscription Agreement) in electronic form and you will receive a copy via email. Depending of the type of security, you will also receive a copy of the countersigned security (SAFE, Note etc.) or a copy of the equity security (Common Stock, Preferred Stock etc.). However, some companies do not actually issue paper certificates for common stock or preferred stock but instead your interest is held as a “book-entry” which means its reflected in the books of the company. You may receive a ceremonial certificate (not an actual stock certificate) reflecting such book-entry interest.
In the offering documents, issuers are required to set funding goals, funding limits and a funding deadline. If an issuer meets its funding goal and assuming the offering period has not expired, you are still able to invest. If the issuer reaches the maximum funding amount before the deadline, the issuer will close the offering and execute the subscription agreements.
Each offering has a target amount that must be raised before the company can have access to the funds. Once the target amount of the offering is met, the company can ‘break-escrow’ by instructing the escrow agent (with Equifund Ventures) to transfer funds from the escrow account to the business.