Do accredited Investors invest through equity crowdfunding?

Yes! Accredited Investors have a long history of investing in early stage companies in exchange for equity. Now they can do so through equity crowdfunding platforms like Fundify in order to expand their deal flow and access due diligence materials all in one place. 

 

How It Works

Simply join Fundify as an Investor, with no cost or obligation. You’ll be invited to complete an Investor Profile; the more information you provide, the more relevant information you’ll see as our community grows. You can choose to enter payment information while setting up your account or wait to provide that when you’re ready to invest in a specific opportunity.

Review current opportunities and watch for email alerts of new deal flow that may interest you. 

As you find opportunities that match your investment strategy, use our 1-Click Invest™ process to get in on the deal. You can access campaign updates throughout the round, and we’ll notify you when the deal closes. Then, you can watch for updates from the Startup.

 

How Do I Review Terms?

Each campaign will include details of the terms on the main pitch page. High-level information is provided in the “Offering Terms” card in the right-hand column. Just below that, you can access more detailed financial documents and the company’s Form C. 

Note that the detailed forms are available for live funding campaigns; that information is not part of Fundify Fast Pitch campaigns, which are for companies who are testing the waters for a funding campaign.

 

How is a Startup’s valuation set on Fundify?

The majority of companies that raise Reg CF funds do so through a Simple Agreement for Future Equity (a “SAFE”). The SAFE is an agreement to provide Investors with a future equity stake based on the amount invested. SAFEs convert from stakeholders into company equity shareholders based on the price-per-share valuation of a future equity funding event (referred to as a “priced-round” of funding). As a result, a Startup’s valuation is not relevant for Reg CF funding campaigns using SAFEs. Some Companies do offer a “valuation cap” which benefits Reg CF Investors by setting a limit on the price-per-share for any future conversion into equity.

 

How does equity crowdfunding affect a Startup’s cap table?

Most companies that raise Reg CF funds do so through a Simple Agreement for Future Equity (a “SAFE”). Since the SAFE is a promise of future equity and not actual shares until it converts, it does not adversely affect a company’s cap table. SAFEs may be reflected a percentage of ownership by Investors who have purchased a future right to equity. The total percentage in SAFE stakes will dilute the Founder’s share when a follow-on price round is negotiated.

 

How Involved Will I Be With Company Operations?

Equity crowdfunding investors are passive Investors, so it’s unlikely that you’ll be asked to dedicate time to the company’s operations. 

 

Will I Have Voting Rights?

No, this form of investment does not grant voting rights, though Founders welcome communications from Investors.

 

How do I join?

Simply open an account with no fee and no obligation here