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Company FAQ's

Getting Started

Who Can Raise Capital On Crowd WallStreet?


We believe in diversification! We encourage companies accross different industries to apply for funding. Companies we like are Food & Beverage, Real Estate (Residential & Commercial) , 3D Printing, Tech Gadgets, VR&AR (Virtual Reality, and Augmented Reality), Drones, Alternative Energy, Electric Vehicles, SmartPhone gadgets, and Apps. Almost any U.S. C-Corp, LLC, or PBC can use Crowd Wallstreet to raise up to $5 Million annually. After a company applies, our vetting team will review their pitch deck and additional information and will follow up soon thereafter.




What Type Of Offerings You Accept?


1. Reg CF 2. Reg A+ 3. Reg D




What Type Of Securities Are Accepted?


  • Common stock
  • Preferred stock
  • Membership units
  • SAFE's
  • Debt
  • Convertible note
  • Revenue sharing




How Much Can I Raise?


The SEC limits companies to raising:

  • $5,000,000 via REG CF per rolling 12 month period.
  • $75,000,000 Via REG A+ per rolling 12 month period.
  • Unlimited via Reg D, 506(c)




How Long Can I Run A Campaign?


Campaigns usually last 30-60 days. Generally, companies may take anywhere from 3-6 months or longer to reach their maximum funding goal. If you want to extend your raise beyond your close date, you can file an amendment to continue your raise. If an offering is incredibly successful and reaches its maximum in just a few days, legally the offering must remain up for at least 21 days.




How Can I Apply To Raise Capital?


To raise capital on Crowd WallStreet, you mus submit a pitch deck and answer some basic questions here so our vetting team can review your application. Generally speaking, our vetting team will respond to you within 1-2 weeks of your initial submission. Once you are approved, you can start working on your offering page by clikcing "Create Offer".




How Much Does It Cost To Raise On Crowd WallStreet?


Application Fee $149 Form C & Form ID Process Fee: $600-$1,500

  • Option 1: $1,500
  • Option 2: $500 upfront & $2,000 from the capital raised.
Escrow Agent: $500 Equity 2% Total Upfront Cost: $1,249 - $2,149




What Is The Minimum Amount I Can Raise?


The Minimum amount you can raise on Crowd WallStreet is $10,000.




Can I Raise Capital From International Investors?


Yes! International investors can invest in US companies, as long as they are following the securities laws within their home country with the exception of Canadian and UK investors.




What Is The Launch Process?


To launch a campaign on Crowd WallStreet, you must first file a Form C with the SEC. The Form C involves the following:

  • Basic legal disclosures
  • Information on key executives
  • The company’s business plan
  • Use of proceeds and
  • The terms of the offering
If your raising up to $107,000, the business owner can sign off (Self-Certify) on the legal and financial paperwork without using outside services. If you are planning to raise between $107,000-$1,070,000 businesses must have an independent CPA to review their financial books for the past two years, or since the business was incorporated if it was less than two years ago. If you are planning to raise between $1,070,000-$5,000,000, you will need an audit. Once you file your Form C, they can launch their offering. What happens after your campaigns ends? If your campaign fails (you fail to meet your minimum funding goal) all investments made by investors will be refunded to them. If your campaign succeeds, the money is now yours. Companies are obligated to maintain its public disclosures and file annual reports and update those disclosures. Those annual reports must continue as long as there are shareholders who participated in the round (i.e. until acquisition or shareholder buy out). After one year, investors’ shares are tradable. This means that if you want to provide liquidity to the shareholders who invested in your Reg CF campaign, you could do so by signing a quotation agreement to launch on an alternative trading system and let your investors have an opportunity to access liquidity.




COVID-19 Relief Measure


Many entrepreneurs and small businesses have been effected by the pandemic and the SEC has stepped in to make capital raising easier to help businesses survive and strive to get back in the fight. For 18 months beginning February 28th, 2021, companies can raise a total of $250,000 with self-certified financials (without the relief measure, this maximum is $107,000).




How Can I Market My Campaign?


Crowdfunding marketing is not like traditional marketing. The SEC is very strict about what you can, and can't say, when it comes to you talking about your raise. What can I say about my raise before my launch? Under new rules which went into effect on March 15, 2021, companies considering making a crowdfunding offering may “test the waters” (TTW) in order to decide whether to commit to the time and expense of making an offering. Prior to filing the Form C with the SEC, you may make oral or written communications to find out whether investors might be interested in investing in your offering. The way in which you make these communications (eg, email, Instagram, Facebook and LinkedIn). This would apply to meetings with potential investors, giving out any information on forums which offer “sneak peeks” or “first looks” at your offering, and public announcements about the offering. You can collect indications of interest from potential investors including name, address, phone number and/or email address but NO FUNDS can be accepted. Normal advertising of your product or service is permitted. For more information read a PDF from Crowd Check





Eligibility

Does My Company Needs To be Incorporated?


Yes. Your company should be a LLC or Corporation. As long as your company is based in the United States it does not need to be incorporated in a particular state.




What Are Bad Actor Checks and Is It A Requirement?


Under the SEC’s crowdfunding rules, there are certain rules that disqualify individuals from raising money using equity crowdfunding. The issuer is disqualified if they have a relevant criminal conviction, regulatory or court order. Disqualificiation could be but not limited to:

  • Criminal Convictions A conviction within the previous ten years - any felony or misdemeanor in connection with the purchase or sale of a security, involving the making of any false filing with the Commission, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities.
Read more Disqualifying Provisions. The regulation requires Crowd WallStreet to collect these reports for every “covered person” involved in the crowdfunding campaign to ensure that the company is qualified under the regulation. The SEC defines “covered persons” to include the following:
  • The company issuing securities, including its predecessor entities and affiliated entities issuing securities;
  • Directors, general partners, and managing members of the company;
  • Executive officers of the company, and other officers of the company that participate in the offering;
  • 20% beneficial owners of the company;
    • Any entities (LLC, C-Corp, etc.) owning 20% or more beneficial ownership of the issuer will also require Bad Actor Checks for all “covered persons” of the underlying entity.
How Do I Get The Bad Actor Check? Once you have submitted your campaign for StartEngine Review, our compliance officer will reach out to you from compliance@crowdwallstreet.com with further instructions on how to request and pay for your company's bad actor checks. The Cost? $75 per Bad Actor check




Can Any Company Raise Capital On Crowd WallStreet?


To raise capital on Crowd WalStreet, companies must be:

  • A registered legal entity
  • A U.S. based operating entity
  • A corporation or an LLC
  • The founder is at least 18 years old





Real Estate

What Is Real Estate Crowdfunding?


Real estate crowdfunding involves a group of investors who each contribute money to a specific real estate deal. As developer or sponsor, if you find an opportunity to renovate an apartment building and plan to sell it at a profit need the necessary capital to do so, you can turn this investment into a crowdfunding opportunity and raise the necessary funding from investors.




How Does Real Estate Crowdfunding Work?


Sponsors, which are individuals or comapnies, who are raising capital can list their Real Estate investment on Crowd WallStreet platform. Our process starts with a review of your real estate deal and the sponsor. This includes a review of the:

  • property
  • market,
  • target returns
  • track record
When reviewing the sponsor, each principal undergoes a background check to mitigate the risk of fraud.




How Much Can I Raise For My Project?


Reg CF - Up to $5 Million Reg A+ - Up to $75 Million Reg D 506(c) - Unlimited (Accredited Investors Only)




What Type Of Real Estate Investments CWS Accepts?


We accept:

  • Retail
  • Commercial Property
  • Multifamily (5+)
  • Industrial
  • Self Storage
  • Ground up Development
  • Mobile Home Parks




Do I have to Invest My Own Equity In The Project?


Yes. Typically a minimum of 10% of the total equity requirement of a transaction.