The businesses on Equity Portal set the deal terms at which they sell their securities, and investors must accept them. Here are some explanations of some of these terms:
Minimum Funding Goal – The minimum amount a business has to raise to close out a campaign. If the amount is not reached, the campaign is not successful, and therefore, all the funds are returned to investors.
Maximum Funding Goal – The maximum amount a business is looking to raise. When this amount is reached, the campaign will close and, investors will receive their securities on our platform.
1. Each campaign has a start to end date.
2. An option to close early or extend, if their goal has already been reached
3. An option to do a rolling close.
4. A cancellation deadline.
Each company sets the minimum investment size they will accept during a campaign. Equity Portal allows companies to start as low as $10, but the typical minimum investment amount ranges between $25–$250. Companies can also choose to limit the maximum investment amount to allow more investors to participate.
Investing with Equity Portal means that each term comes with a SAFE agreement.
Terms of a SAFE: a SAFE is not the same as equity, rather a financial agreement that may provide investors with equity in the future, given that the terms are met. For example, whether a company reaches its goal valuation or has a series-round investment.
A Dividend is a distribution, based on equity owned, of cash (in Equity Portal’s case, annually) to the shareholders.