Reg CF FAQ's
Reg CF FAQ's
Crowdfunding allows investors to support startups and early-growth companies that
they are passionate about. This is different from helping a company raise money on
Kickstarter. With Regulation CF Offerings, you aren’t buying products or merchandise.
You are buying a piece of a company and helping it grow.
Investors other than accredited investors are limited in the amounts they are allowed to
invest in all Regulation Crowdfunding offerings (on this site and elsewhere) over the
course of a 12-month period: If either of an investor’s annual income or net worth is less
than $107,000, then the investor’s investment limit is $2,200, or 5 percent of the greater
of the investor’s annual income or net worth, whichever is greater. If both an investor’s
annual income and net worth are $107,000 or higher, then the investor’s limit is 10
percent of the greater of their annual income or net worth, or $107,000 whichever is
greater. Accredited investors are not limited in the amount they can invest.
Calculating net worth involves adding up all your assets and subtracting all your liabilities (excluding the value of the person’s primary residence). The resulting sum is your net worth.
We cannot give tax advice, and we encourage you to talk with your accountant or tax
advisor before making an investment.
Individuals over 18 years of age can invest.
Investing in startups and small businesses is inherently risky and standard company risk factors such as execution and strategy risk are often magnified at the early stages of a company. In the event that a company goes out of business, your ownership interest could lose all value. Furthermore, private investments in startup companies are illiquid instruments that typically take up to five and seven years (if ever) before an exit via acquisition, IPO, etc.
Shares sold via Regulation Crowdfunding offerings have a one-year lock up period before those shares can be sold under certain conditions.
All available financial information can be found on the offering pages for the company’s Regulation Crowdfunding offering.