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PADL

Platform for self-serve paddle sport rentals

  • $144,980Amount raised
  • $1,000Minimum
  • $5,000,000Valuation cap

Purchased securities are not listed on any exchange. A secondary market for these securities does not currently exist and may never develop. You should not purchase these securities with the expectation that one eventually will.

Website: www.padl.co

PADL is offering securities under both Regulation D and Regulation CF through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to 7.50% of the value of the securities sold and equity compensation equal to 5.00% of the number of securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, this profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures in the offering's draft. The contents of this profile are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.


Company Highlights

  • Developed patented solution for self-service paddle sport rentals
  • Signed up 1,800+ total users, with 190+ subscription members & 1000+ non-member rentals
  • 4,000+ hours paddled across 700+ miles with over 1600+ sessions
  • Launched in 7 locations so far
  • Signed letter of engagement with Crystal Lagoons to offer PADL as a paddle share option for all current and future Crystal Lagoons

Fundraise Highlights

  • Total Amount Raised: US $144,980
  • Total Round Size: US $1,500,000
  • Raise Description:  Seed
  • Minimum Investment:  US $1,000 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $5,000,000
  • Offering Type:   Side by Side Offering

PADL makes getting out on the water easy by combining technology and paddle sports into its paddle share system. Users can quickly unlock a smart board from one of PADL’s docking stations through the mobile app and enjoy their ride.


Did you know that 3 out of 4 millennials would rather buy an experience over a physical good, and that 27% of Americans have an interest in trying paddle sports? This is a 22 billion dollar opportunity in the US alone that has grown 56% over the last few years.

PADL offers self-service paddle sport rentals that allow riders to rent paddle boards and soon kayaks right from their mobile phones. Unlike other alternatives, we offload the rental process onto our mobile apps, and have our equipment located in convenient waterfront locations, providing a far better option than buying or renting equipment both out of convenience, and economically.

Our team is made up of lifelong water enthusiasts. While others were playing soccer, football, or baseball, we were paddling, fishing, and diving! PADL’s founders are Andres Avello, who has led financial and strategic operations and software implementations and managed over $500 million in operating budgets. Khalil Khouri, who is an engineer with deep expertise in robotics, including the buildout of an underwater ROV for Boeing and development to market of various products, and Felipe Jauregui, who helped manage a $2 billion portfolio for a large private bank, and later moved to lead operations at a manufacturing startup.

We make money by renting paddle sport equipment by the hour and offering subscriptions memberships. Our product aims to be like CitiBike for paddle sports, and our vision is to get everyone involved in outdoor activities by getting people out on the water. We have already developed our product, received a patent, signed up 1800+ users, launched 7 stations and are now working to deliver to our growing pipeline of 150+ stations.

Media Mentions

The Team

Founders and Officers

Andres Avello

CEO & Founding Partner

Large enterprise + entrepreneurial experience, launching + scaling multiple brands, implementing large software solutions, managing finance + accounting.

Andres Avello

CEO & Founding Partner

Large enterprise + entrepreneurial experience, launching + scaling multiple brands, implementing large software solutions, managing finance + accounting.

Khalil Khouri

CPO & Founding Partner

Engineer with expertise in robotics, including the buildout of an underwater ROV + development to market of various medical products.

Khalil Khouri

CPO & Founding Partner

Engineer with expertise in robotics, including the buildout of an underwater ROV + development to market of various medical products.

Felipe Jauregui

COO & Founding Partner

Entrepreneur with a track record in sales, banking, relationship + operational management.

Felipe Jauregui

COO & Founding Partner

Entrepreneur with a track record in sales, banking, relationship + operational management.

Term Sheet

A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.

Fundraising Description

  • Round type:
    Seed

  • Round size:
    US $1,500,000

  • Raised to date:
    US $144,980
    US $17,000 (under Reg CF only)

  • Minimum investment:
    US $1,000

  • Target Minimum:
    US $350,000
  • Key Terms

  • Security Type:
    Crowd Note

  • Conversion discount:
    20.0%

  • Valuation Cap:
    US $5,000,000

  • Interest rate:
    9.0%

  • Note term:
    36 months
  • Additional Terms

  • Custody of Shares

    Investors who invest less than $50,000 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.


  • Similar Investments Under Different Forms

    Convertible notes purchased using the form attached as Exhibit A of the Crowd Note shall count towards the Company’s current round and the target minimum. Such notes may be senior to and have different terms from the Crowd Note. Additionally, these investors would vote as a separate series of notes, and may amend their note separately from the Crowd Note.


  • Closing conditions:
    While PADL has set an overall target minimum of US $350,000 for the round, PADL must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to PADL's Form C.

  • Regulation CF cap:
    While PADL is offering up to US $1,500,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF.

  • Transfer restrictions:
    Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

  • Use of Proceeds

    Investor Perks

    For all investors:

    • A ride at any PADL station to experience a great time on the water

    For investors who invest $5,000 or more:

    • A ride at any PADL station to experience a great time on the water

    • PADL branded hat and sun shirt

    For investors who invest $25,000 or more:

    • One-month subscription to PADL with access to all PADL stations to experience a great time on the water

    • PADL branded hat and sun shirt

    For investors who invest $50,000 or more:

    • Six-month subscription to PADL with access to all PADL stations to experience a great time on the water

    • PADL branded hat and sun shirt

    • Invitation to annual meeting and strategy session with PADL founders and executive team

    For investors who invest $100,000 or more:

    • Six-month subscription to PADL with access to all PADL stations to experience a great time on the water

    • PADL branded hat and sun shirt

    • Invitation to annual meeting and strategy session with PADL founders and executive team

    • Guided tour with PADL founders and executive team

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Prior Rounds

    The graph below illustrates the valuation cap or the pre-money valuation of PADL's prior rounds by year.


    This chart does not represent guarantees of future valuation growth and/or declines.

    Pre-Seed

  • Round Size
    US $117,500
  • Closed Date
    May 6, 2019
  • Security Type
    Convertible Note
  • Valuation Cap
    US $10,000,000
  • Pre-Seed

  • Round Size
    US $75,000
  • Closed Date
    Dec 1, 2017
  • Security Type
    Common Equity
  • Pre-Money valuation
    US $300,000
  • Market Landscape

    The paddle sport market represents ~5% of the total outdoor recreation economy by activity.

    The U.S. outdoor recreation economy accounted for 2.2 percent ($427.2 billion) of current-dollar gross domestic product (GDP) in 2017. The Outdoor Recreation Satellite Account (ORSA) also shows that inflation-adjusted (real) GDP for the outdoor recreation economy grew by 3.9 percent in 2017, faster than the 2.4 percent growth of the overall U.S. economy. Real gross output, compensation, and employment all grew faster in outdoor recreation than for the economy as a whole.


    MARKET SIZE:

    The paddle sport market has been growing consistently over the last decade outpacing the outdoor recreation industry as a whole. The current market size is estimated at approximately $22B.

    COMPETITION:

    The market is composed of many small businesses and there are no multi regional brands currently present. We believe PADL will be the first brand to operate in such a wide region through our self serve model.

    TARGET MARKET:

    We are targeting active individuals who enjoy outdoor activities, as well as local residents who live in close proximity to our stations. Paddling is a great exercise and fun activity, so it is very appealing for most.

    COMPETITION:

    Our competition are the existing water sport concessions who provide similar services under a manned model. There are a few locker based "share" models also starting to appear.

    Locker models seem to be popular because of the low initial R&D to develop, but they carry some problematic issues. With locker based share models, you have a much higher initial implementation cost, are unable to properly track the equipment, cannot set controls to determine if the equipment was actually returned, nor provide user stats on distance/health since there is no way to charge components on each board. With PADL, we are able to verify and provide all these features.

    AVERAGE PRICING:

    Current market pricing for paddle board and kayak rentals ranges from about $10 per hour, up to $40 per hour. This pricing makes it very difficult to retain riders and have a heavy repeat business model. With PADL, we focus more towards subscription memberships at $24.99 per month or $99.99 per 6 months. We provide hourly rentals for vacationers and those who don't want to subscribe as well, usually for $15 per hour.

    Risks and Disclosures

    The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The Sports Equipment Rental market is an emerging industry where new competitors are entering the market frequently. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.

    The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway until end of year, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.

    The Company projects aggressive growth in 2021. If these assumptions are wrong and the projections regarding market penetration are too aggressive, then the financial forecast may overstate the Company's overall viability. In addition, the forward-looking statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

    The Company has not prepared any audited financial statements. Therefore, investors have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make investment decisions. If investors feel the information provided is insufficient, then they should not invest in the Company.

    The outbreak of the novel coronavirus, COVID-19, has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Funds, their performance, and their financial results.

    The Company’s Board does not hold regular board meetings or keep meeting minutes from its board meetings. Though the Company is not legally required to record and retain meeting minutes, the practice of keeping board minutes is critical to maintaining good corporate governance. Minutes of meetings provide a record of corporate actions, including director and officer appointments and board consents for issuances, and can be helpful in the event of an audit or lawsuit. These recordkeeping practices can also help to reduce the risk of potential liability due to failure to observe corporate formalities, and the failure to do so could negatively impact certain processes, including but not limited to the due diligence process with potential investors or acquirers. There is no guarantee that the Company’s board will begin keeping board meeting minutes.

    The Company has not filed a Form D for its prior offerings. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.

    The Company has conducted related party transactions. On August 18, 2017, the Company issued an unsecured convertible promissory notes to its member Khalil Khouri in the amount of $12,500. These note bear interest of 9% per annum and has an initial term of five years. At maturity, if not converted, the company will either (i) repay in full all of the principal and accrued interest on this stock notes or (ii) convert all of the principal and none of accrued interest on this Notes into Common Stock of the company. In the event of a Common Stock Conversion, the number of shares of Common stock of the company received shall be equal to the principal amount of the notes divided by the then per share value of one share of Common Stock of the company assuming a fully-diluted pre-money valuation of the company of $10,000,000.

    As of December 31, 2019 and December 31, 2018, the outstanding balance of this note is in the amount of $15,345 and $14,078, including accrued interest in the amount of $2,845 and $1,578 respectively. The note has been classified as non-current and accrued interest as non-current.

    From December 30, 2017 through April 4, 2019, the Company issued five unsecured convertible promissory notes to its member Susana Leal-Khouri in the aggregate amount of $105,000. The notes bear an interest rate of 9% per annum and have an initial term of five years. At maturity, if not converted, the company will either (i) repay in full all of the principal and accrued interest on this stock notes or (ii) convert all of the principal and none of accrued interest on this Notes into Common Stock of the company. In the event of a Common Stock Conversion, the number of shares of Common stock of the company received shall be equal to the principal amount of the notes divided by the then per share value of one share of Common Stock of the company assuming a fully-diluted pre-money valuation of the company of $10,000,000.

    As of December 31, 2019 and December 31, 2018, the outstanding balance of this note is in the amount of $119,744 and $80,603, including accrued interest in the amount of $14,744 and $5,603 respectively. The note has been classified as non-current and accrued interest as non-current.

    From March 5, 2020 to May 4, 2020, the company entered into three unsecured convertible promissory note agreements with the member Susana Leal-Khouri in the amount of $ 50,000. The notes bear an interest rate of 9% per annum and have an initial term of three years. At maturity, if not converted, the company will either (i) repay in full all of the principal and accrued interest on this stock notes or (ii) convert all of the principal and none of accrued interest on this Notes into Common Stock of the company. In the event of a Common Stock Conversion, the number of shares of Common stock of the company received shall be equal to the principal amount of the notes divided by the then per share value of one share of Common Stock of the company assuming a fully-diluted pre-money valuation of the company of $ 5,000,000.

    The total amount raised may include investments made outside of the SeedInvest platform via Regulation D. $97,980 has been raised prior to the launch of the SeedInvest campaign. The earliest investment counted towards the escrow target was made on October 28, 2019. There is no guarantee that the Company has this cash available for operations as of the date of launch. 

    The Total Amount Raised, as reflected on the SeedInvest platform, may be partially comprised of investments from the Company’s management or affiliates. Such investments are not being counted towards the escrow minimum. If the sum of the investment commitments does not equal or exceed the escrow minimum at the offering end date, no securities will be sold in the offering, investment commitments will be cancelled, and committed funds will be returned. As a result, the Total Amount Raised may not be reflective of the Company's ability to conduct a closing.

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for theseshares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events \u2014 through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneuror management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may nothave the benefit of such professional investors.

    PADL's Form C

    The Form C is a document the company must file with the Securities and Exchange Commission, which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Download PADL's  Form C

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in PADL
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by PADL. Once PADL accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to PADL in exchange for your securities. At that point, you will be a proud owner in PADL.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or passport
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


    How much can I invest?

    An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:

    • If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.

    Separately, PADL has set a minimum investment amount of US $1,000.

    Accredited investors investing $20,000 or over do not have investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my securities in the future?

    Currently there is no market or liquidity for these securities. Right now PADL does not plan to list these securities on a national exchange or another secondary market. At some point PADL may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when PADL either lists their securities on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is PADL's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the PADL's Form C. The Form C includes important details about PADL's fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your account's portfolio page by clicking your profile icon in the top right corner.