Now YOU Can Raise Startup Funding or Expansion Capital Legally Online!
Heard of Kickstarter? Investment Crowdfunding is just like a rewards based crowdfunding portal like Kickstarter but instead of selling things like tee shirts or "free beer" you're able to sell an amazing investment opportunity to your family, friends, and fans!
With Investment Crowdfunding you can raise money by getting an exemption from federal securities laws that means you can go online and ADVERTISE that you're looking for investors in your business. Worried about CONTROL? YOU get to set the terms! Borrow money from your crowd and instead of paying a bank (often with a personal guarantee) you're paying your family, friends and fans a good interest rate. Want partners? Make your offering all about the EQUITY. You can even sell a "revenue share" offering if you want. The options are endless -- it comes down to whether your investors are into it.
What are the steps to Issue an Offering?
- Engage a Portal Operator such as Silicon Prairie Online at https://sppx.io
- Prepare the required documents: Business Plan, Risk Factors, Term Sheet etc.
- File a notice with either your state regulator or in the SEC EDGAR system (may be subject to a waiting period)
- Publish on the Portal and begin Marketing the Offering to potential Investors
- Raise the Minimum Amount to begin receiving cash and keep it open for up to a year!
Who can invest in an Offering (buy shares)?
Everyone! We have a number of programs, depending on how much money you want to raise and where your investors are located. Raise up to $5M in some states!
How does money change hands?
- Investors view the Offer on the Portal and Pledge a dollar amount
- Funding Portal collects the payment via check, ACH, or wire transfer (No credit/debit cards)
- Bank or Escrow Agent holds the funds until Minimum Raise is obtained
- When the Minimum Raise is achieved Investors electronically sign Subscription Agreements
- Escrow Agent disburses funds to the Issuer via the Funding Portal
- Note: If Minimum Raise is not met before the offer expires – funds are returned to the Investors
When can the Offer be advertised?
Once the Offer is deemed “effective” by your state regulator or filed in the national EDGAR database it may be published on an approved Funding Portal such as Silicon Prairie Online. Issuers and Investors may promote the offering through public channels such as Social Media, Paid Ads, and Investor Events! Offers may be displayed on a marketplace or a private label website that contains a single issue.
Sounds AWESOME! How do I get started?
Or grab a copy of our AMAZING "Investment Crowdfunding Booklet" here! (Better yet? Do both!)