IPO Wallet is an equity crowdfunding platform in the US. We help companies raise capital through equity crowdfunding to expand their businesses.
The passage of the JOBS Act in 2012 made it possible for every US citizen to invest in startups, regardless of wealth or status. On IPO Wallet, anyone can invest in private businesses and buy shares of stock, debt, revenue share, and more. Entrepreneurs no longer need traditional sources of capital, such as private equity or venture capital firms, to bring their ideas to life; they just need other like-minded visionaries willing to take a chance on something novel.
IPO Wallet works with three regulations in particular: Regulation Crowdfunding (Reg CF), Regulation A and Regulation D. Under Reg CF a company can raise a maximum of $5M from both accredited and non-accredited investors each year, every year. Regulation A has a limit of $75M, and Rule 506(c) of Regulation D has no capital Raise Limit, however it relies exclusively on accredited investors.
The cost of launching a Regulation Crowdfunding campaign varies on a case-by-case basis, but generally speaking it costs between $4,000-$10,000 for the financial review and legal documentation required to launch a Reg CF campaign. However, it is possible to launch at no cost upfront if the company meets a few criteria
In essence, the difference can be distilled down to the wealthy vs. everyone else. The real definition is that accredited investors are individuals with a net worth greater than $1M (excluding their primary residence) or an annual income exceeding $200K per year for two years ($300K if combined with a spouse). With equity crowdfunding, both accredited and non-accredited investors can invest in your business.
Generally, companies finish onboarding in 2-6 weeks. We’re with you every step of the way and are on your timeline. Onboarding can be done more quickly if you’re on top of things and responsive to our team.
Story: Tell your story in your own words. Build and design your campaign page to attract investors. Our creative team can help you! Set your own terms: What’s your valuation? What kind of security do you want to sell and how much of it? It’s all up to you. Legal: We request corporate documents like Articles of Incorporation and Board Resolutions to approve your fundraise. Financial: You have two options: – Save on upfront cost and self-certify your financials to raise up to 107K. – Use one of our low-cost, preferred CPA vendors and get a 2-year independent financial review done in order to raise up to $1.07M from the start. Don’t worry — if you start with self-certified financials, you can always commission the financial review during your offering in order to raise more than 107K.
On average campaigns last 90-120 days depending on the marketing effort and value of the capital raise. Anything less than 90 days tends to not be enough time to garner widespread awareness.
We require that companies set a minimum funding goal of $10,000 for their campaign. This way if a company raises less than their maximum funding goal, they can still collect the investments they raised as long as it is more than $10,000.
Companies must meet a basic set of criteria (such as being a US-based operating company, the founder is at least 18 years old, etc). We also analyze every company that comes to IPO Wallet’s platform in order to determine whether they are the right fit for our platform and audience as well as for equity crowdfunding in general.
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