Owners of start-ups or growing businesses can raise funding from investors by selling a percentage of the company’s equity. As the owner of your company, you decide how much equity the company wishes to sell and that equity stake is sold and divided up into shares offered to the public.
Raises are active for 90 days and companies can raise a maximum of $250,000 in one raise event, with up to two raise events per calendar year. The company must sell up to its minimum raise amount to investors during the 90 days, or else the entire raise fails.
Investors actually pay for the shares they want to buy during the raise period and those funds paid are held by the portal until the raise period is over. The progress of the offering is shown on the portal during the offering period. If the desired and specified amount is raised from investors, the event succeeds and the portal awards the funds raised less costs of the raise to the company, and investors are sent share certificates. If the specified amount is not raised from investors, the portal will return the funds paid for shares to the investors and the event is concluded without result.