Who Can Raise?

Core criteria we use to review a company’s application include:

• The company and its management team have never been found to commit fraud, securities violations, or serious crimes by any court or governmental agency (the so-called no “bad actor” requirement).
• When aggregated with its other crowdfunding offerings in the prior 12-month period, the amount the company seeks to raise on Equity Portal does not exceed $1 million (required by JOBS Act Title III).
• The company is a U.S. company offering products or services.

Applications failing to meet all three core criteria above will likely be rejected. We also consider several other non-exclusive factors when reviewing a company’s application, including:

• Fundraising needs
• Offering terms
• Business plan

Unlike the three core criteria, Equity Portal will evaluate these soft factors in a holistic manner. One strong element or deficiency will not necessarily make or break an application. However, we generally need to understand what the company does and where it is going, its potential customers, team members and investors, and as its finances.
We also expect Issuers will have a lawyer, accountant, and a transfer agent. We can provide referrals for each. Title III requires an escrow agent and we will facilitate you getting in touch with our preferred provider of these services.

Limited Transfer

The securities that you acquire on Equity Portal are Federally regulated and subject to certain restrictions. These restrictions may make it difficult for you to transfer or sell your securities for the first 12 months after your acquisition. Additionally, there may also be state and foreign restrictions that further limit your securities’ transferability. Some securities that you acquire may not allow a transfer altogether.