Crowd Ignition is a website where you can find and invest in a variety of businesses.
The JOBS Act of 2012 created three kinds of offerings, all of which are sometimes referred to as Crowdfunding:
We offer all three kinds on our site.
No, different rules apply to each. For a summary of the Title III rules, see our Educational Materials.
For each offering, we will tell you whether the offering is under Title II, Title III, or Title IV.
No! In Kickstarter, you make donations to businesses and get nothing in return other than “rewards.” On our platform you are actually making an investment with the expectation of a financial return.
Crowd Ignition, Inc. is a “funding portal,” registered with the SEC and the Financial Industry Regulatory Authority, or FINRA.
Crowd Ignition, Inc. – and only Crowd Ignition, Inc. – offers investments under Title III Crowdfunding. Crowd Ignition, Inc. does not offer investments under Title II or Title IV.
Crowd Pay.us, Inc , an affiliate of Crowd Ignition, Inc., offers the investments under Title II and Title IV.
Only “accredited” investors can invest in Title II offerings. Anyone can invest in Title III or Title IV offerings.
In general, a person is an “accredited investor” if she (i) earns at least $200,000 per year, or $300,000 per year with her husband; or (ii) has a net worth of at least $1 million, excluding her principal residence. For the SEC’s full definition, visit http://www.sec.gov/answers/accred.htm.
No, it’s absolutely free for investors to join.
You can browse the investment opportunities right away, and also see information posted in our chat rooms. But to actually make an investment, or to participate in the chat rooms, you need to register and create a password.
No, we don’t list every business that applies. We list companies where we believe (1) the business model has promise, and (2) the management team is capable.
You should not interpret this as investment advice. We are not investment advisers.
Yes. We use SSL (Secure Sockets Layer) for security by making an encrypted link between your browser and our associated servers. SSL is an industry standard for protecting the integrity of online transactions.
Far from it! Most of the opportunities on our site, whether under Title II, Title III, or Title IV, are early-stage companies, which carry a very high risk profile. It is very likely that at least some of the companies listed on our site will fail. These opportunities are only for investors who can handle losing some or all of their investment.
It’s similar only in the sense that you are investing in a business. Otherwise, it’s very different:
Our Educational Materials list some of the generic risks of investing in Title III offerings. The information each business provides – for Title II, Title III, and Title IV – should also include business-specific risks.
When you click on a business, you’ll see a lot of information right away. For more information, after you click on the project click on Investor Information. There’s you’ll see even more in-depth information about the project and the investment.
No. No Federal or State agency reviews these investments. You and your advisers have to make the decision whether to invest.
We receive compensation from the businesses that are listed on our site. The way Crowd Ignition, Inc. is compensated for Title III offerings is explained in our Educational Materials. And for each Title III offering we will disclose exactly how much Crowd Ignition, Inc. is being paid.
That’s entirely up to you and your investment advisers. As a general matter, most people recommend a balanced portfolio that includes both low-risk and high-risk investments, with the right mix based on lots of factors including your age and your own tolerance for market fluctuations. As you consider how much to invest, you should definitely think of the projects on our site as high-risk investments.
By law, we are required to limit how much you can invest in Title III offerings. For more information, see our Educational Materials.
We are not investment advisers and are not allowed to provide investment advice. If you’re not sure, you should consult with your own financial and investment advisors.
No, not at all. You are only personally liable only to make your investment. We choose our legal structures to protect investors from personal liability.
That depends on the offering. For some offerings, you will own stock in a corporation or an interest in a limited liability company. For others, you will own a simple promissory note. The kinds of securities we offer for Title III offerings are described in our Educational Materials.
No, nobody will guaranty that you will be paid. Whether you are paid depends solely on the success of the business.
Usually by a transfer straight from your bank account. There are no fees to you.
Your money is held safely in an escrow account (which we don’t control) until the project is fully subscribed, i.e., until the full amount is invested. Then, it is distributed to the sponsor of the project. If the project is not fully subscribed, your money will be returned to you without any deduction.
For Title III offerings, generally yes. You can cancel until 48 hours before the offering deadline established by the business. For Title II and Title IV offerings, generally no.
For Regulation Crowdfunding, investors are able to cancel at any point throughout the campaign up until 48 hours before the closing of the offering. (Note: If the company does a rolling close, they will post an update to their current investors, giving them opportunity to cancel during this time frame. If you do not cancel, within this 5 day time frame, your investment will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ your investment can no longer be cancelled.) and the investor will receive securities in exchange for his or her investment.
For Regulation A+, We allows for a Six-hour cancellation period. Once the six-hour window has passed, it is up to each company to set their own cancellation policy. You may find the company’s cancellation policy in the company’s offering circular.
Once your investment is canceled, there is a 10 day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days. Refunds that are made through ACH payments, can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank and will do everything we can to get you your refund as soon as possible but every investment needs to go through both the clearing process and then process and get sent back to the account associated with the investment.
In order to change your order amount, you will have to cancel your order and re-submit a new order. To cancel your order, please follow the steps below:
Yes. The business has the right to accept or reject investments in its sole discretion. But once the business accepts your investment (and takes your money), it cannot cancel.
Generally speaking, no. For one thing, there won’t be an active market, meaning you probably won’t be able to find any buyers. For another, in many projects you will be restricted from transferring your interests. Finally, any transfer of your interest would have to comply with the securities laws.
Yes, we give you a tool – we call it our Dashboard – to keep track of all the investments you make at our site.