Educational materials and FAQ’s on equity crowdfunding and the VR industry.
ABOUT THE EQUITY CROWFUNDING INDUSTRY
Regular old crowdfunding is cool but donating for rewards is not the same as investing for shares. With equity crowdfunding, for each dollar you invest you get a certain amount of company ownership. The startup can use these funds to grow its business and if the startup goes on to do great things, you as a shares owner are entitled a piece of that success.
Anyone can invest in Regulation CF offerings. Because of the risks involved with this type of investing, however, you are limited in how much you can invest during any 12-month period. The limitation on how much you can invest depends on your net worth and annual income.
If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the lesser of your annual income or net worth.
If both your annual income and your net worth are equal to or more than $107,000, then during any 12-month period, you can invest up to 10% of annual income or net worth, whichever is lesser, but not to exceed $107,000 of securities in aggregate across all issuers conducting a Regulation CF offering.
Yes, you have up until 48 hours prior to the deadline posted on the offering page and included in the offering documents (Form C) (which may be changed from time to time) to cancel your investment commitment for any reason. No cancellations may be made within the 48 hours prior to the end of the offering term. If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering.
If there is a material change to the terms of an offering or to the information provided by the issuer, we will give or send to any investor who has made an investment commitment notice of the material change and notice that the investor's investment commitment will be cancelled unless the investor reconfirms his or her investment commitment within five (5) business days of receipt of the notice. If the investor fails to reconfirm his or her investment within those five business days, we will (within five business days): notify the investor that the commitment was cancelled, the reason for the cancellation and the refund amount that the investor is expected to receive; and direct the refund of investor funds.
If material changes to the offering or to the information provided by the issuer regarding the offering occur within five business days of the maximum number of days that an offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm his or her investment.