FUNDRAISING 101
Info and FAQ’s on equity crowdfunding with us.




 

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.




 

FAQ


 
SeedingU is a Regulation Crowdfunding ("Reg CF") funding portal where Issuers can offer equity securities and US residents can invest in companies.
To create a new offering on SeedingU, submit your application info using the 'Raise' button in the top menu. Just fill in all the fields following the instructions on-screen, click the 'Save' button, and we will review it with 1 week and let you know.
SeedingU will direct the escrow agent to release funds from escrow after the offering has met the minimum target per the terms of the offering and escrow agreement. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.
We do not charge investors any fees for accessing the portal. SeedingU and other third party service fees for each offering are disclosed in the respective offering materials. SeedingU will receive 7% of the capital raise per offering paid by the Issuer and a non-refundable 2.5% transaction fee per investment which will be paid by the Investor. In case of cancellation of investment or if the campaign doesn’t reach it’s minimum funding target, the investment funds will be returned. In the future, SeedingU may take an equity interest in issuers in the amount of a percentage of the total offering in lieu of or in addition to the commissions referenced above.
No. Each application must meet preliminary business requirements set by SeedingU and strict legal requirements under Regulation Crowdfunding. Additionally, SeedingU reviews every proposed offering. In some instances, SeedingU will choose not to list offerings because of the characteristics of the business or the funding request. For example, SeedingU does not accept businesses that promote illegal activities or offensive behavior (e.g., hate speech, encourage violence toward others) through its business or via the products or services offered for sale.
No, we only offer equity participation. SAFEs don’t have a maturity date or pay interest, so they may never convert to equity, and there is nothing in a SAFE that calls for the investment to be repaid to the investor! Investors in SAFEs must rely on an event, such as an acquisition, public offering or subsequent round of funding to get any potential payback, but there is no guarantee that any of those events will occur.
Yes. Only US registered companies can raise funds on SeedingU.
No, not for you. SeedingU pays for all escrow fees and legal fees and are only reimbursed if your campaign is successful.
We charge the issuer 7% commission on all dispersed funds and reimbursement of legal/escrow fees.
Yes, we only offer Reg. CF raises and at this time the max raise is set at $1,070,000 USD.
Yes, the minimum amount is $50k USD.
During the creation of your project, you will be required to provide information to the portal for escrow. Carefully review all instructions to ensure that you provide sufficient information. Once the campaign has reached its target goal, escrow will release the funds to the company’s bank account as determined when setting up the escrow account. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.
During the creation of your project, you will receive instructions to upload the signing instructions. Different types of offerings have different types of signature requirements, so it is important that you carefully review all instructions during the project creation process. If you are not given an opportunity to provide signature instructions during the project creation process, you will be contacted by our customer support to ensure that the signature documents are correctly associated with your offering.
Yes, as long as the investment are still in escrow, or haven't yet been received, you may cancel any investment. Once the funding round has closed, investments cannot be canceled.
If an offering hasn't reached its minimum funding goal by the end of a funding round, the offering will close, and committed funds will be refunded. SeedingU will pay for escrow fees, transaction fees and related legal fees associated with the setting up of the campaign if unsuccessful.
Before your offering has been created, we do a thorough check to see if your offering meets all of our requirements, then we validate you and your information. We work closely with you until your investment meets our criteria and our legal team has submitted your FORM C. When ready, we'll send you a private admin link where you can create a profile, escrow account and campaign. We will review, request edits and then approve the project. Once approved, it will automatically go live on the start date you've selected.
An offering closes when either the maximum amount of funding has been reached, or the end date of the funding round has been closed. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.
Yes, as long as your offering has not already closed. If you wish to extend an offering, please contact our support team.
We will be doing bad actor checks on all company officers and shareholders of 20% or more within your startup. As far as what’s shown in your campaign on SeedingU, you are legally liable for every statement in your campaign and that it’s 100% true, and that you have not omitted any important information investors should know about (for example, a lawsuit or known patent infringement).
Yes, rules mandate reviewed financial statements for offerings between $107,000 and $535,000, and audits of financial statements for offerings greater than $535,000 (noting a maximum offering of $1,070,000).
No. SEC review or clearance of your offering statement is not required. However, you must submit to the SEC your offering statement prior to raising funds on SeedingU (Form C). Our securities lawyer will do that for you at no upfront charge and we will only be reimbursed if your campaign is successful.
Supply Information about officers & directors as well as owners of 20% or more of the company (3 years back-data). A description of the company’s business and use of funds raised from the offering. Price and number of the securities being offered. Campaign raise targets (min raise, target raise and max raise). Certain related-party transactions or lawsuits. Description of the financial condition of the company and financial statements during a 12-month period prior to offering with a copy of 3rd party audit.

Five points of education all fundraisers need to know

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ABOUT US

We are the only equity crowdfunding portal specific to the virtual reality industry and offer exclusive access to some of the stealthiest VR tech. And yes, we know virtual reality, mixed reality and augmented reality are technically different but for simplicity sake we put them into the same bucket and just call in VR.

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INVESTORS INFO

For as little as $100 you can own your own little piece of the VR industry. You now have as much rights and access to the same startups as top-tier VC firms, angel groups, private equity groups and high net worth individuals.

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FUNDRAISING INFO

We try to make it as easy as possible to hit your funding target through equity crowdfunding. There are zero upfront platform fees and you only pay a commission of up to 6% if your campaign raise is successful.

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