Investors Knowledge Base

How to Invest

Registration

First, register at our site. You will establish log-in credentials and provide us with some information about yourself.

You will also be asked to review and confirm that you will comply with our Terms of Use and Privacy Policy, and consent to electronic delivery ( i.e. , email) of all documents. 

We have the right to reject or revoke your registration to our site for any reason, including a violation of our Terms of Use or Privacy Policy.

Online Process

Under Title III, the entire investment process happens online through our site. We will never send you paper, call you on the phone (except in some emergencies) or ask to meet with you.

Making an Investment

You can see investment opportunities as soon as you visit the Site. When you click on an opportunity that interests you, you will be able to see all the information available about the opportunity (see Information the Startup Will Disclose -- Before You Invest ). But you won’t be allowed to invest until you register.

Once you decide to invest, click on the “Invest” button. We will ask for more information, arrange for you to pay for your investment and ask you to sign one or more documents with the Issuer. For example, you might be asked to sign something called an “Investment Agreement.”

Having done that, you will be deemed to have made an “investment commitment.” But you’ll still have a chance to cancel, as described below.

Notice of Investment Commitment

Once we receive your investment commitment, we will notify you of:

  • The dollar amount of your commitment
  • The price of the securities you committed to buy
  • The name of the Issuer
  • The date and time by which you may cancel your commitment

Target Offering Amount and Offering Deadline

For each offering, the Issuer will disclose a “target offering amount,” meaning the minimum amount the Issuer is trying to raise (in some cases this could be as little as $1), and an “offering deadline.” If the Issuer doesn’t raise the target amount before the offering deadline, then the offering will be canceled and any investors who have made investment commitments will receive their money back. 

If the Issuer reaches the target offering amount before the offering deadline, it may close the offering early as long as (1) the offering has remained open for at least 21 days, and (2) we give a notice to investors. The notice must:

  • Specify the new deadline, which must be at least five days after the date of our notice;
  • Notify investors that they may cancel their investment commitment for any reason up until 48 hours before the new deadline; and
  • Notify investors whether the issuer will continue to accept investment commitments during the 48 hour period before the new deadline.

If an Issuer intends to accept investments over and above the target offering amount, it must disclose the maximum amount it will accept and how it will handle “over-subscriptions.” For example, the Issuer might allocate the securities on a first-come, first-served basis, or pro-rata among all of the investors who make investment commitments, or in some other way.

Your Right to Cancel Your Investment

You can cancel your investment commitment at any time up to 48 hours before the offering deadline, for any reason. 

Also, if an Issuer makes a material change to the terms of an offering or the information previously provided by the Issuer changes, we provide a means by which the Issuer will send an electronic message to any Investor who has made an investment commitment. The electronic message will describe that the Investor's investment commitment is cancelled unless the Investor reconfirms the investment commitment within five (5) business days of receipt of the message.

Paying for Your Investment

You can pay via credit card (for amounts under $20k), ACH from a U.S. bank or wire transfer. We also accept investments from self-directed IRAs. There is no charge to the Investor.

When you invest, your money will be held in an account administered by a qualified third-party financial institution until the offering is completed.  We, as a Funding Portal, are prohibited from holding your money.  If the Issuer is successful in raising the target offering amount, the bank will release the investors’ money to the Company.  We will notify you by email and the investment process will be complete.

Confirmation of Transaction

Before your investment is final, we will send you a notice disclosing, among other things:

  • The date of the transaction
  • The type of security you are buying
  • The price and number of securities you are buying, as well as the number of securities sold by the issuer in the entire transaction and the price(s) at which the securities were sold
  • If you are buying a debt security, the interest rate and the yield to maturity calculated from the price paid and the maturity date
  • If you are buying a callable security, the first date that the security can be called by the issuer
  • The source, form and amount of any compensation Fundify expects to receive in the transaction