Our first step was to conduct due-diligence for our startup.
We have spent the past two years constantly and critically evaluating our business and marketing plan and revenue model for generating profits and growth in the future. We have researched the majority of our competitors in our space and have isolated and questioned the major barriers to entry which included important considerations such as, legal, regulatory, and compliance issues within our space.
Build upon your passion.
We know that the personality and drive of the company founders is just as important the business idea itself. We have the skill, knowledge, and passion to carry us through periods of growing pains and discouragement. We have been open to advice and constructive feedback from our advisory board and people outside of the company. Unlike the big players in our space we are agile and nimble enough to pivot given unexpected regulatory events or technological changes.
Securities and Exchange Commission Rules
We, like most startups, according to U.S. News, have invested our own money, incorporated and then authorized creation of a set number of shares as regulated by the Securities and Exchange Commission (SEC). Some of these are sold to friends and family. Over the course of time, more shares are being sold to a widening circle of outsiders, often including venture capital firms and other professionals.
Risk as well as Reward.
If all goes well, the company will eventually go public, allowing our shares to be traded on a stock exchange, or we merge with or be acquired by another like-minded company. Early investors in startups have sometimes turned $1 dollar into $100, sometimes much more. Of course, we know that in many cases it doesn't work out this way. Startups have a 90 percent failure rate, which is why they are such risky investments. If you pick the right business, you may end up a millionaire, or even a billionaire. But if not, you stand to lose everything you invest.
This is a pretty big deal.
The SEC voted on October 30, 2015 to approve so-called equity crowdfunding rules for investors, an effort spawned by the passage of the JOBS Act way back in 2012. What that means is that not only are we able to use our current SEC offering for unaccredited investors, but we will be able to offer our opportunity through brokers or online platforms to the “crowds”, and those investors can now be, well, anyone.
So, You want to Invest
Now, we can offer you the opportunity to invest in the company ,through the online intermediary market place, which is something you couldn’t do until now. But there are some things you need to know. The SEC has safeguards in place to protect you, the investor, as well as protections for us to minimize fraud. Here’s what you need to know. If you have an annual income or net worth below $100,000 can invest no more than $2,000, or up to 5 percent of the lesser of their annual income or net worth. For those who make at least $100,000, the SEC says they can invest 10 percent of either their annual income or net worth (whichever is less). The SEC requires us to disclose basic company details. Our SEC offering and disclosures are included.
So, you decided to invest $500.
Now what? Let’s say, as a basic example, that your $500 investment equates to 500 shares of stock or $1 per share. Fast forward to our IPO and the stock price is now $10 per share. Your shares are now worth $5000.
$1 million in Liquid Assets.