CrowdVest is a platform that facilitates investments in startup companies. These companies are highly vetted by management, and presented to investors for consideration once approved. This process allows private companies the ability to raise funds needed for expansion.
Under the JOBS Act, the companies can raise up to $50 Million from the crowd. You now have the opportunity to invest in these private companies, and own a piece of the startup that you believe in.
When an investment is made into a company on CrowdVest the investor will receive a security in return (equity or debt). The rewards based firms such as Kickstarter will give investors a reward or special gift. With CrowdVest you will own a piece of the company and the potential upside in the company.
In April 2012 the JOBS Act was passed as a way to help spur on the struggling economy. The JOBS Act also created a new opportunity for entrepreneurs to access capital to grow their companies and ideas. Companies are now able to publicly advertise their capital raises. More importantly, on June 19, 2015 Title IV (Regulation A+) of the JOBS Act was put in effect and private companies are now able to raise money from all Americans. Prior to Regulation A+ only accredited investors were allowed to invest in private offerings. Today all American have the opportunity that only the wealthy had in the past.
Yes. Elio Motors completed a $16.9 million offering with approximately 6,600 investors. The company was valued at $300 million and the stock was issued at $12 per share. On February 24, 2016, the company commenced trading on the OTCQX and rose over the next few days to as high as $75 per share. The valuation of the company was as high as $1.87 billion at its peak.
The beauty of Reg A+ is that all investors, regardless of net worth and income, are eligible to invest in the offering. Unaccredited investors (97% of investors) can invest up to 10% of their net worth or income, whichever is greater. Accredited investors do not have an investment limitation.
Yes. Once the offering is closed the shares will be tradable. There may not be a large market for the shares unless the company lists on a major stock exchange.
According to Rule 506a of the Securities Act of 1933, an “accredited investor” is someone that meets one of the following requirements: net worth in excess of $1 million, annual income of at least $200,000 in the prior two years and expect to make at least that amount this year, total annual income with a spouse of $300,000 with the same criteria. There are other ways to pass the accredited investor threshold outside of being an individual and if you think you may qualify feel free to reach out to our team.
CrowdVest does not charge investors a fee to invest in one of the companies listed on our platform. For example, if you invest $5,000 in to an offering, you will receive $5,000 worth of securities. All $5,000 will be invested in the company. CrowdVest will charge the companies to list on the platform.
The majority of the companies listed on CrowdVest will be considered high-risk startups. The companies will be in their infancy stage and will face numerous hurdles to reach their goals. There is a chance that all of your investment into a company on CrowdVest could be lost if the company goes out of business. As far as selling your investment, startups can be illiquid and often will not have a marketplace to sell your stake. That being said, the goal of the majority of the companies on the platform is to uplist to an exchange where shares are freely traded, offering investors the ability to sell their shares.
For more on the risk with investing in startups please see the platform’s Terms section.
The minimum and maximum investment for each offering will vary and is determined by the company. However, they are typically $1,000 or less.
No. We suggest you contact your tax advisor.
You can contact the company directly to ask any specific questions you may have before investing.
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