- Participated in over 3,100 funding opportunities since inception
- Provided over $15.5M in funding to small and medium businesses to date, with total expected payback (RTR) of over $22M
- Achieved a 185% increase in funding to merchants from December 2020 to January 2021
- Team of executives has over 100 years of combined experience building financial companies
- Aims to be a leader in the democratization of the multi-billion alternative investments market
- Total Amount Raised: US $593,255
- Total Round Size: US $950,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Crowd Note
- US $15,000,000 :
- Side by Side Offering
Supervest is an online, crowd-funding platform that allows accredited investors to tap into the high yield potential of Merchant Cash Advance (MCA). We connect our high-quality community of investors with our stable of funding partners in order to provide working capital to small businesses across the United States.
The ability to invest, participate, or syndicate in this area has been traditionally reserved for the merchant cash advance companies and "insiders" of these companies. We have leveraged our experience and knowledge of the industry with the power of our fully integrated platform to give our funding partners the ability to tap into a stream of capital to fund qualified merchants.
We have developed relationships with over a dozen funding firms that aim to provide hundreds of opportunities per month to our platform. Our proprietary technology allows our investors to target the businesses, credit quality and terms of the opportunities they wish to participate in. Additionally, our funding partners can tap into our data and use our artificial intelligence to help determine how to better price their deals.
A Side by Side offering refers to a deal that is raising capital under two offering types. Investments made through the SeedInvest platform are offered via Regulation CF and subject to investment limitations further described in the Form C and/or subscription documents. Investments made outside of the SeedInvest platform are offered via Regulation D and requires one to be a verified accredited investor in order to be eligible to invest.
US $318,255 (under Reg CF only)
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.
All investments made by March 12, 2021 will be bumped up to the next corresponding level of perks and rewards.
To receive Supervest credit rewards, investors must create a Supervest account as a verified accredited investor.
All investors will receive:
- Quarterly shareholder updates
- Early access to product betas
For those who invest $5,000:
- $100 of credit in your Supervest account
- Participation in annual investor call with management team
For those who invest $15,000:
- $500 of credit in your Supervest account
- Participation in annual investor call with management team
For those who invest $30,000:
- $1,000 of credit in your Supervest account
- Participation in annual investor call with management team
- Supervest swag (t-shirt, hat, or sweatshirt)
For those who invest $100,000:
- $1,000 of credit in your Supervest account
- Participation in annual investor call with management team
- Supervest swag (t-shirt, hat, or sweatshirt)
- Private tour of the Supervest headquarters in Chicago
For those who invest $200,000:
- $2,000 of credit in your Supervest account
- Participation in annual investor call with management team
- Supervest swag (t-shirt, hat, or sweatshirt)
- Private dinner with Supervest management team in Chicago
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.
The graph below illustrates theor the of Supervest's prior rounds by year.
Merchant Cash Advance syndication is not readily available to today's investment community. Traditionally, it is reserved for the funding companies themselves, along with company "insiders" and a handful of brokers who originate these funding opportunities. There is a limited market currently available for an accredited investor to tap into unless they have a pre-existing relationship with an MCA funder.
In order to effectively and efficiently operate their businesses, small business owners often require access to working capital, often unexpectedly. Unfortunately, traditional lending institutions take weeks to approve and fund a business loan - a restauranteur whose oven breaks down needs a new oven the next day to stay in business, not next month. This is where MCA lenders provide working capital.
MCA is a tightly-held, private market - so it is difficult to assess the size and opportunity. Bryant Park Capital estimated the market size to be over $19.2 billion near the end of 2019. With traditional banks and private equity firms generally tightening their lending restrictions to these MCA companies, funders are relying more heavily on syndicates to co-fund their deals. There are limited other syndication platforms that leverages crowdfunding and forges this connection like Supervest.
As we continue to expand our platform, we are currently partnering with originators to offer additional unique and differentiated investment opportunities to the platform. Our targeted* areas include: Credit Card Portfolio Acquisition, Movie/Theatrical Productions, Consumer Debt Settlement, Hard Money Lending.
*Please note that this reflect's management's current views with respect to future events based on information currently available and is subject to risk and uncertainties. This does not represent guarantees of future activities.
The Merchant Cash Advance industry is largely unregulated and changes in regulations could adversely affect the Company’s business. Currently, the Merchant Cash Advance (MCA) industry is largely unregulated. The regulatory status of MCAs is unclear or unsettled in many state jurisdictions, as well as at the federal level. It is difficult to predict how, when or whether regulatory agencies may apply existing regulations with respect to such MCAs. Regulatory actions could adversely impact the MCA marketplace in certain states or the industry in general in various ways, including, for purposes of illustration only, through a determination that such capital advance transactions constitute unlawful activity or that MCAs are a regulated transaction that requires registration or licensing for some or all of the parties involved. As new laws and regulations take effect, the Company is likely to experience other effects that cannot yet be predicted and may significantly impact the Company.
Evolving government regulations may require increased costs or adversely affect the Company’s results of operations. In a regulatory climate that is uncertain, the Company’s operations may be subject to direct and indirect adoption, expansion, or reinterpretation of various laws and regulations. Compliance with these future laws and regulations may require the Company to change its practices at an undeterminable and possibly significant initial monetary and annual expense. These additional monetary expenditures may increase future overhead, which could have a material adverse effect on its results of operations. Additionally, the introduction of new services may require the Company to comply with additional, yet undetermined, laws and regulations. Compliance may require obtaining appropriate state medical board licenses or certificates, increasing security measures and expending additional resources to monitor developments in applicable rules and ensure compliance. The failure to adequately comply with these future laws and regulations may delay or possibly prevent some of the Company's products or services from being offered to Clients and Members, which could have a material adverse effect on the business, financial condition, and results of operations.
The Company is not currently registered with FINRA. FINRA is a self-regulatory organization under the purview of the SEC. The Company is of the opinion that their business activities do not require registration with FINRA. However, there is a risk that the SEC and/or FINRA may disagree and require the Company to register, which may require the Company to cease their business operations until they obtain the requisite licenses, which could take a significant amount of time. There is also a possibility that the Company may be required to materially alter the business model, in a significantly, and potentially adverse way, diminishing the Company’s prospects and position. In addition, regulators may find that the Company has been in violation of securities laws with its current operation and subject the Company to sanctions. Sanctions and other adverse impacts may diminish the Company’s position and prospects, and therefore the possibility of a return on your investment.
There are risks associated with the repayment of Merchant Cash Advance loans that the Company must manage. The general risks under a Merchant Cash Advance (MCA) are as follows. A Funder will provide capital to Merchants through MCAs. A Funder will purchase receipts expected to be generated from a Merchant’s future sales. A Merchant will authorize a Funder to receive a certain percentage of its future daily sales receipts, or a fixed daily amount estimated to equal this percentage, until a Funder has received all of the future receipts it has purchased. Among the risks associated with these transactions is that the Merchant does not unconditionally agree to repay the MCAs. If the Merchant does not generate sufficient receipts due to adverse business conditions, loss of leased premises, natural disasters or similar occurrences beyond the control of the Merchant, a Funder and a Syndicate Partner will suffer the loss since the MCAs are not secured by collateral.
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 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 may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for the Company to dramatically increase the number of customers that it serves or to establish itself as a well-known brand in the competitive space. Additionally, the product may be in a market where customers will not have brand loyalty.
Customer complaints or negative publicity could result in a decline in the Company’s customer growth and its business could suffer. The Company’s reputation is very important to attracting new customers to its platform. While the Company believes that it has a good reputation and that it provides its customers with a superior experience, there can be no assurance that the Company will continue to maintain a good relationship with its customers or avoid negative publicity.
Failure to obtain new clients or customers or renew client contracts or subscriptions on favorable terms could adversely affect results of operations. The Company may face pricing pressure in obtaining and retaining their clients. Their clients may be able to seek price reductions from them when they renew a contract, when a contract is extended, or when the client’s business has significant volume changes. Their clients may also reduce services if they decide to move services in-house. On some occasions, pricing pressure results in lower revenue from a client than the Company had anticipated based on their previous agreement with that client. This reduction in revenue could result in an adverse effect on their business and results of operations.
Further, failure to renew client contracts on favorable terms could adversely affect the Company's business. The Company's contracts with clients generally run for several years and include liquidated damage provisions that provide for early termination fees. Terms are generally renegotiated prior to the end of a contract’s term. If they are not successful in achieving a high rate of contract renewals on favorable terms, their business and results of operations could be adversely affected.
The Company has a limited operating history in an evolving industry, which makes it difficult to evaluate future prospects. There can be no assurance that the Company will be able to achieve or sustain profitability. Although the management team of the Company has general experience in the Merchant Cash Advance industry, there is no assurance that the Company will be successful.
The Merchant Cash Advance industry is sensitive to changes in economic activity and the impacts of COVID or related pandemic type scenarios or other unforeseen events. Uncertainty and negative trends in general economic conditions in the United States and abroad, including significant tightening of credit markets, historically have created a difficult environment for companies in the MCA industry. Many factors, including factors such as COVID or other pandemic type situations that are beyond the Company’s control, may have a detrimental impact on its operating performance. These factors include general economic conditions, unemployment levels, energy costs, and interest rates, as well as events such as natural disasters, acts of war, terrorism, and catastrophes.
The Company’s risk management efforts may not be effective. The Company could incur substantial losses and its business operations could be disrupted if it is unable to effectively identify, manage, monitor, and mitigate financial risks, such as credit risk, interest rate risk, liquidity risk, and other market-related risk, as well as operational risks related to its business, assets and liabilities.To the extent the Company’s proprietary technology that is used to assess the creditworthiness of a potential business does not adequately identify potential risks, its risk management systems would not adequately represent the risk profile of such business and could result in higher risk than anticipated. The Company’s risk management policies, procedures and techniques may not be sufficient to identify all of the risks it is exposed to, mitigate the risks that it has identified or identify concentrations of risk or additional risks to which it may become subject to in the future. Furthermore, there may be a lag in the time in which a customer begins to show signs of an inability to pay back a MCA and when a Funder begins to take remedial action, and as a consequence this could impair a Syndicate Partner’s eventual ability to receive repayment on the MCA.
The Company's funding opportunities are small businesses. Accordingly, the funding opportunities or the funder's customers historically have been, and may in the future remain, more likely to be affected or more severely affected than large enterprises by adverse economic conditions. These conditions may result in a decline in the demand for MCAs by potential customers, higher default rates, or both, by their existing customers. In addition, there is a risk that the quality of the portfolio will deteriorate during a recession. There can be no assurance that economic conditions will remain favorable for the Company or that demand for MCAs or default rates by the Funders’ customers will remain at current levels. Reduced demand for MCAs would negatively impact the Company’s growth and revenue.
The Company's Merchant Cash Advance offerings have varying term length on the platform and their factor rates will vary. The Company seeks to accept numerous Funders on its platform. Each Funder will have its own underwriting and investment guidelines, including general rules about Merchants, the location of a Merchant, cash flow requirements, preferred and prohibited industries, the expected term of a MCA, the factor rate of a MCA and the typical funding amount. Given that each Funder’s investment guidelines will be different, the expected returns from each MCA will be different and there is a risk that some MCAs will perform better than others due to such guidelines and terms.
The Company relies on a technology platform that has been designed using the Company’s proprietary know-how. The Company’s investment strategy relies heavily on the use of proprietary and non-proprietary software and data by the Company. Such reliance on this technology and data is subject to a number of important risks. First, the Company may be severely and adversely affected by a malfunction of the technology and/or data feed. For example, an unforeseeable software or hardware malfunction could occur, as a result of a virus or other outside force, or as a result of a design flaw in the system or in its continued implementation. Furthermore, if any of the software, hardware, data and/or other intellectual property is found to infringe on the rights of any third party, the Company could be adversely affected.
Merchant MCA default rates may be significantly affected by economic downturns or general economic conditions beyond our control and beyond the control of individual Merchants. In particular, loss rates on Merchant Cash Advances may increase due to factors such as prevailing interest rates, the downturn in the economy, the level of consumer and business confidence, commercial real estate values, the value of the U.S. dollar, energy prices, changes in consumer and business spending, the number of personal and business bankruptcies, disruptions in the credit markets, and other factors.
The Company relies on its management team and needs additional key personnel to grow its business. The loss of key employees or the inability to hire key personnel could harm its business. The Company believes its success depends on the efforts and talents of its executives and employees and on its continuing ability to attract, develop, motivate and retain highly qualified and skilled employees. Qualified individuals are in high demand, and the Company may incur significant costs to attract and retain them. In addition, the loss of any of its senior management or key employees could materially adversely affect its ability to execute the Company’s business plan and strategy, and it may not be able to find adequate replacements on a timely basis, or at all. The Company cannot ensure that it will be able to retain the services of any members of its senior management or other key employees. If the Company does not succeed in attracting well-qualified employees or retaining and motivating existing employees, the Company could be materially and adversely affected.
The Company does not have employment contracts in place with key employees. Employment agreements typically provide protections to the Company in the event of the employee’s departure, specifically addressing who is entitled to any intellectual property created or developed by those employees in the course of their employment and covering topics such as non-competition and non-solicitation. As a result, if key employees were to leave the Company, the Company might not have any ability to prevent their direct competition, or have any legal right to intellectual property created during their employment. There is no guarantee that an employment agreement will be entered into.
Investors in the Company will be reliant on the Company’s management. Except as provided for herein or in the Participation Agreement, holders of Interests will have no right or power to participate in the management of the Company or to influence the Company’s management, whether by voting, withdrawing, removing or replacing the Company’s management team or otherwise. Accordingly, no potential investor should purchase an Investor Participation Interest unless it is willing to entrust all aspects of the Company’s management to its management team. Investors in Interests will be relying on the management expertise of the Company’s management team in identifying and analyzing a potential investment and administering and working out, if necessary, the Company’s financing, if any, related to any investments. In addition, if for any reason, any members of the management team should cease to be involved in the Company, replacements may be difficult to obtain, and the Company’s performance may be adversely affected. Investors in the Interests do not have an ownership interest in the Company.
The infrastructure of the Company may be vulnerable to security breaches. Any such problems could jeopardize confidential information transmitted over the Internet, cause interruptions in operations or give rise to liabilities to third parties. Concerns over the security of transactions and the safeguarding of confidential information could inhibit the use of the Company’s platform to conduct transactions over the Internet. Data breaches take many different forms, including a calculated, malicious act to gain information that can be used for profit. These types of attacks commonly target personally identifiable information such as social security numbers and credit card information. Security breaches could expose the Company and Syndicate Partners to a risk of financial loss, litigation and other liabilities. Control policies may not protect the Company against all of such losses and liabilities. The Company will take the necessary steps to attempt to prevent a data breach, but in the event that one occurs, this could have a material adverse effect on the Company and result in operational losses or lack of functionality to conduct business.
The Company's business could be negatively impacted by cybersecurity threats, attacks, and other disruptions. Like others in its industry, the Company continues to face advanced and persistent attacks on its information infrastructure where it manages and stores various proprietary information and sensitive/confidential data relating to its operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack its products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate the Company's network security and misappropriate or compromise its confidential information or that of its customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that the Company produces or procure from third parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of the Company's information infrastructure systems or any of its data centers as a result of software or hardware malfunctions, computer viruses, cyber attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect the business.
The Company has established subsidiary companies. The Company, Supervest LLC, is a parent company to established subsidiaries. The Company runs its daily business operations through Supervest LLC and has established subsidiary limited liability companies for branding, current and projected operations purposes. The Company and its managing members have ownership control over each of the subsidiaries. One of the Company’s wholly owned subsidiaries, Supervest MCA LLC, was established to participate in Merchant Advance operations by way of the platform and technology of the parent company. All material operations of the Company are run through Supervest LLC, the parent company.
There is no guarantee that the Company’s business will maintain the requisite amount of deal flow. The Company relies on the origination of new MCAs from the Funders with whom it has partnered. There is no certainty that the quality and amount of deal flow from each of the Funders will remain consistent with historical experience or that they will continue to provide deal flow to the Company and the Company cannot guarantee that it will continue to work with such Funders.
The Company’s cash position is relatively low. The Company currently has approximately $152,666 in cash balances as of February 26, 2021. This equates to runway through the end of the year and the Company expects that it is able to continue extracting cash from sales to extend its runway further. The Company could be harmed in the event it is unable to meet its cash demands, and in this event, the Company may not be able to continue operations if they are not able to raise additional funds.
The Company projects aggressive growth. 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 an outstanding Note payable related to an Ownership Interest Purchase Agreement. On June 24, 2020, the Company entered into Ownership Interest Purchase Agreement with Epic Advance, Inc., to purchase 12.5% of the issued and outstanding interest of the Company in exchange for a total amount of $375,000. The purchase price accrues interest at a rate of 12% per annum amortized over 50 months and is paid in monthly installments in accordance with the amortization schedule in the Reviewed Financials in the Data Room. If the Company conducts an equity financing equal to a minimum $1,000,000, the Company is required to pay all amounts owed to Epic Advance, Inc. As of December 31, 2020, the outstanding balance of this loan is in the amount of $345,328.
The Company has an outstanding EIDL loan that is secured debt. The Company has approximately $150,000 in secured debt due to this EIDL loan as of January 31, 2021. On May 5, 2020, the Company entered into a loan agreement with the U.S. Small Business Association for a COVID-19 Economic Injury Disaster Loan (EIDL) with a principal amount of $150,000. Interest accrues at the rate of 3.75% per annum. Installment payments, including principal and interest, begin twelve months from the loan date and the loan matures 30 years from the loan date. This may require the Company to dedicate a substantial portion of its cash flow from operations or the capital raise to pay principal of, and interest on, indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, or other general corporate purposes, or to carry out other business strategies. The Loan is guaranteed by the company assets. In addition, the terms of the Loan clarify that upon any event of default, the Lender may declare all or any portion of the Loan to be immediately due and payable. One of the Events of Default, as defined in that agreement is a general inability to pay its debts. The Loan is secured with a continuing security interest in all the Company’s assets.
The Company has an outstanding PPP loan. The Company owes First Midwest Bank for a Small Business Association Paycheck Protection Program loan totaling $68,772. This loan has been granted in April 2020 and accrues at an interest rate of 1% and contains a 6-month deferral period during which there is no payment. After the deferral period, the Company is required to make principal and interest payments in equal 24 installments. The Company has applied for the loan forgiveness in accordance with the Paycheck Protection Program but no guarantee of forgiveness can be made.
The Company has an outstanding Related Party loan. The Company has entered into a Related Party Transaction with its management in the form of a Promissory Note in January 2021. The Promissory Note has a principal amount of $100,000, and will accrue interest at the rate of 9% per annum. The term of the Note, unless terminated earlier pursuant to the terms within the Note, shall begin on the date of the Note and continue until January 25, 2023.
The Company has participated in Related Party Transactions in its operation. The Company has entered into Related Party Transactions with Debt Pay Gateway Inc. As of December 31, 2020 and December 31, 2019, the Company held $1,578,449 and $2,457,423 in escrow accounts with Debt Pay Gateway Inc. The Company does not have an escrow agreement in place with Debt Pay Gateway Inc. Escrow agreements formalize the relationship between the Company and an escrow agent and typically define payment and operation structures. As a result, the Company and its escrow agent, Debt Pay Gateway, operate in a non-formalized arrangement. Certain members owning 32.5% of the Company are also owners and founders of Debt Pay Gateway Inc.
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.
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 entrepreneur or 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 not have the benefit of such professional investors.
Frequently Asked Questions
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.
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.
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.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $5 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.
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 Supervest. Once Supervest accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Supervest in exchange for your securities. At that point, you will be a proud owner in Supervest.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Your accredited investor status
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement) or debit card information, unless paying via a Wire transfer.
Non-accredited investors are limited in the amount that he or she may invest in a Reg CF offering during any rolling 12-month period:
- If either the annual income or the net worth of the investor is less than $107,000, the investor is limited to the greater of $2,200 or 5% of the greater of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $107,000, the investor is limited to 10% of the greater of his or her annual income or net worth, to a maximum of $107,000.
Separately, Supervest has set a minimum investment amount of US $1,000.
Accredited investors do not have any investment limits.
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:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- 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.
Currently there is no market or liquidity for these securities. Right now Supervest does not plan to list these securities on a national exchange or another secondary market. At some point Supervest 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 Supervest either lists their securities on an exchange, is acquired, or goes bankrupt.
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.
This is Supervest'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 Supervest's Form C. The Form C includes important details about Supervest's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours prior to the offering end date or an earlier date set by the company. You will be sent a notification at least five business days prior to a closing that is set to occur earlier than the original stated end date giving you an opportunity to cancel your investment if you have 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.
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.