When do the funds become available?
During your crowdfunding campaign on Fundify, investments are held in escrow at a third party, per SEC rules. Fundify works with Fund America, a division of Prime Trust, as the third-party escrow company. Funds raised, less fees, are transferred to your Startup when one of the following occurs:
- Your minimum funding target has been met and the campaign time frame has expired.
- Your minimum funding target has been met and a rolling close date has arrived. Rolling closes must be predetermined and noted in your Form C. Investors will be notified of an impending rolling close.
- Your maximum funding target has been met (or exceeded!) and the campaign time frame has expired.
- Your minimum or maximum funding target has been raised and a new, earlier time frame has been reached. Note that once a campaign has begun, any change to the announced time frame must be communicated to all Investors via email, and all Investors must be invited to recommit their investment amount via the Fundify platform. Investors must be given at least 5 days to recommit.
Funding targets (minimums, maximums) and campaign time frames are set by the Startup.
If the target capital raise for a crowdfunding campaign is not met by the specified time frame, all funds in escrow are returned to Investors by Fund America, a division of Prime Trust. Investors also have the option to withdraw their commitment to invest up to 48 hours before an offering’s announced closing deadline.