Disclosures

  1. SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  2. SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  3. Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  4. Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.
MiniIPO
How it Works

Mini-IPO under Regulation A

Learn about Reg A and how it works for companies and investors

Regulation A

What is Regulation A?

For the last 80 years, private companies could only raise capital from accredited investors, the wealthiest 2% of Americans. On April 5, 2012, President Obama signed a landmark piece of legislation called The JOBS Act, allowing entrepreneurs to go to the crowd and publicly advertise their capital raises. On June 19, 2015, three years after the JOBS Act was signed, Title IV (Regulation A+) of the JOBS Act went into effect, allowing private early-stage companies to raise money from all Americans. Startups can now use a Mini-IPO under Reg A+ to turn their customers into investors.

Reg A+ is a type of offering which allows private companies to raise up to $75 Million from the public. Companies looking to raise capital via Reg A+ will first need to file with the SEC and get qualification before launching their offering. The costs associated with a Reg A+ offering are much lower than a traditional IPO and the ongoing disclosure requirements are much less burdensome, effectively making a Reg A+ offering a mini-IPO.

Step 1

Preparing the Reg A offering

Once a company decides to pursue a Mini-IPO, SeedInvest will work with them to get regulatory qualification. This process involves drafting offering documents and receiving the go-ahead from the SEC.

After a company has decided to pursue a mini-IPO, they will need to draft a Form 1-A with the help of SeedInvest and obtain reviewed or audited financials. After filing the Form 1-A, SeedInvest will work with the company to respond to any comments from the regulators and then file the final offering circular after receiving the final go-ahead from the SEC.

The company and SeedInvest will keep you updated on the progress of the offering. You should use this time to learn more about investing in private companies and to familiarize yourself with the SeedInvest platform. The SeedInvest blog is a valuable source of articles and information about investing in private companies.

StartYourRaise-PrepareRegA
Step 2

Launching the raise

Once regulatory qualification has been received, the company may launch its mini-IPO. SeedInvest's online platform has been engineered to seamlessly accept investments online, including verifying investor identities, performing anti-money-laundering checks on investors, facilitating investment document execution, funds transfer and regulatory compliance.

Throughout the Reg A+ offering, SeedInvest will work in tandem with the company to effectively market the campaign, manage investor relations, and facilitate online investments at sale. SeedInvest will work with the company to market its fundraise by employing a three-tiered strategy to promote the round to and accept investments from:

  1. The company's customers and the SeedInvest investor network to build initial momentum and excitement.
  2. The early-adopters, the company's extended network and affinity groups.
  3. The public through robust press, advertising, and digital campaigns.

The company's SeedInvest profile presents comprehensive information about the company to let potential investors make an informative investment decision. Potential investors should read this information carefully. The SeedInvest platform allows investors to confirm their identity, sign legal documents, and transfer funds online.

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Step 3

Closing the round

SeedInvest will manage the entire closing process and ensure that all legal and regulatory obligations are met. The funds from the investors will be transferred to the company upon completion of the offering. Additionally, the platform provides messaging and managing tools for the company and investors to collaborate online before and after closing the round.

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Testimonials

What Founders Say

NowRx-RegA
Cary-Breese
Cary Breese
CEO & CO-FOUNDER, NOWRX

“Equity crowdfunding under Regulation A, has become a viable, mainstream alternative to traditional venture capital and allows early stage entrepreneurs to raise substantial capital while building a grass roots following.”

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david kaplan avatar
David Kaplan
CO-FOUNDER AND CEO, DEATH & CO

“Crowdfunding wasn’t initially on our radar, we weren’t aware of it as a route for our company and we really fell in love with the people at SeedInvest and the idea and ultimately the idea that we could have our investor base made up of the people that have supported us this entire time: our fans, followers and guests."

Gatsby-App
Jeff-Myers
Jeff Myers
CO-FOUNDER, GATSBY

“We had a great experience working with SeedInvest. It was a great way to give our users an opportunity to be a part of our journey.”

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