Course V – Investing Guidelines

1: Identify the purpose and scope of your Investment

Before you make an investment, consider your purpose for investing. What kind of returns you are expecting? What risks are you are able to bear? Investing in private companies is very different from investing in companies that are traded on an exchange. You should discuss your options and the proposed investment with your financial, legal and tax advisor to make sure that investing in a crowdfunding offering is right for you. You must acknowledge that early stage investing is accompanied with considerable risk and therefore you might suffer a financial setback. Do not opt for equity crowdfunding if you are looking for quick returns or need liquidity in the near future.

2: Check your risk tolerance

Crowdfunding is traditionally a long term and a high risk investment. If you are an investor who can’t afford to lose his/her entire investment, crowdfunding is not the right investment for you. Invest only that money which you can afford to lose which will not affect your lifestyle. Be mindful that monetization of your investment made through equity crowdfunding is highly unlikely and can take much longer than traditional investment products. You should perform significant due diligence before investing. Candidly, equity crowdfunding is not a “quick money” short-term investing strategy and you should never invest an amount of money that you cannot afford to lose.

3: Conduct due diligence

Equifund CFP does not endorse or recommend any company posted on the portal. The posting of an offering on Equifund CFP should not be interpreted as a solicitation, recommendation or investment advice of any kind.  Investors should conduct their own due diligence. Researching a private company can be challenging. We suggest starting with the SEC’s EDGAR website where you can read information about the company and review the offering materials. These materials are also available on Equifund CFP.

4: Acceptable payment methods

Investments on Equifund CFP can be paid through the following: ACH transfer, mailing a check or issuing a bank wire. Do not send funds directly to Equifund CFP or the issuer as they will not be accepted. All funds are to be sent and held by a third-party escrow agent pursuant to Regulation Crowdfunding.

5: Investment vehicles

Investing in a crowdfunding offering can be made through an assortment of investing vehicles including but not limited to; an Individual, Corporation, LLC, a Trust, a Self-Directed IRA or 401(k)

6: Diversify

Diversification is widely considered the most efficient risk management technique (don’t put all your eggs in one basket). A portfolio well diversified is capable of reducing risk by allocating your investment amount among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that may perform differently over time. Equity Crowdfunding is no different. Investors should always have a diversified portfolio with each asset class proficiently diversified in it.

Crowdfunding is a very volatile investment. One strategy an investor may consider is  investing in a number of uncorrelated assets to increase the prospect of you achieving the maximum return possible at a lower level of risk. Even with diversification, an investment in startups is highly speculative and could result in the complete loss of your investment. You should consult with your financial advisor to develop a portfolio that is designed with your financial goals in mind.

7: Research on product and people

As part of your due diligence and evaluation of a proposed investment, you should evaluate the experience, knowledge and track-record of the company’s management. Research the companies’ products and services. Make sure there’s a clear application or need in the market for these products and services.

8: Invest in industries you understand

There are advantages to investing in an industry for which you are familiar. with. It provides you the advantage of having a better understanding of the product and marketplace.

9: Review the offering

It is essential to review and scrutinize the offering materials presented to you by the issuers to comprehend fully what you are receiving in return of what you are investing.

10: We encourage you to ask questions to issuers

Equifund CFP offers a communication tool where investors and issuers can connect and communicate. Each offering has a dedicated forum located on the offering home page. We encourage you to ask questions and raise any concerns to the company’s management.  You should also review the other questions and answers in the forum as the issues and concerns raised by your fellow Equfund CFP users may provide you with some useful insights that will help you make a better informed decision.

11: Know the tax implications

Please review with your tax consultant before making an investment so you understand any tax implications when investing through regulation crowdfunding.

12: Cancellation of investment (Escrow period)

Once you have invested in an offering your money is placed in escrow. Those funds remain in escrow until the final 48-hours before the end of the offering period as listed in the Form C. You may cancel your investment any time leading up to the 48-hour deadline. Once an offer reaches the last 48-hours, all the investments held in escrow are considered final and non-refundable.

13: Material changes in the offering

In the event an issuer makes a material change to the offering, you will be notified by Equifund CFP and each investor will need to reconfirm their investment within 5 business days. If an investor fails to reconfirm their investment after reviewing the material change in the offering, his or her  investment will be canceled.

14: Scope of annual reporting from the issuers

A company that has raised capital in a regulation crowdfunding offering is required to provide an annual report on Form C-AR within the 120 days after the end of their fiscal year. The report is required to be filed on the SEC’s EDGAR website and also on the issuer’s official website. The annual report will contain information relevant for investors to review pertaining to their investment. An audit or a review of the financial statements may not be required. Issuers are required to do annual reporting until one of the following events occurs:

  1. the issuer is required to file reports under Securities Exchange Act Sections 13(a) or 15(d);
  2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
  3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
  4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Regulation Crowdfunding, including any payment in full of debt securities or any complete redemption of redeemable securities; or
  5. the issuer liquidates or dissolves in accordance with state law.

In the event a company decides to terminate the requirement of annual reporting, it will have to file the Form C- TR to report that it will no longer provide annual reports pursuant to the requirements of Regulation Crowdfunding.

**EquifundCFP reserves the right to not follow up or circulate any annual updates or performance reports of any of the companies that have raised funds through the platform after the initial offering.  Investors are expected to communicate directly with the company.  Following completion of an offering conducted through EquifundCFP, there may or may not be any ongoing relationship between the issuer and EquifundCFP.

15: Issuers contain the ultimate right to accept or reject your investment

It is the issuer who holds the final rights to accept or reject a certain investment. Your investment is not final until it is accepted by the issuer.


*Please review our Terms of Use to understand the roles and responsibilities of Equifund CFP in your investing decisions.

Pre-Investment Agreement

The next 8 slides will allow us to process your investment. Note that these next steps are a legal requirement – Thank you for your patience and financial support of this investment opportunity. Jordan Gillissie – CEO

Before we execute the investment, it’s important for us to make sure you’re comfortable and knowledgeable in early stage investing. We want to make sure that you:

    • Received and have reviewed the education materials sent to you.
    • UNDERSTAND; that there are restrictions on your ability to cancel your investment commitment and obtain a return of your investment.
    • KNOW; It may be difficult to resell securities acquired under Regulation Crowdfunding.
    • AGREE; investing in securities offered and sold in reliance on section 4(a)(6) of the Securities Act involves risk. Investors should not invest any funds unless he or she can afford to lose the entire amount of his or her investment. Your investment may not work out, and you must be in a financial condition to bear the loss.
  • Hidden
  • Hidden
  • Hidden
  • Hidden

We are currently upgrading our system. If you click submit and the process does not continue in a few seconds, please refresh this page manually, and click Invest Now again and you should be moved on to the next step.

Complete Your Registration

By verifying your account you agree with our terms of use, privacy policy and pre-dispute arbitration agreement. Please complete the registration process by clicking the link below:

Verify Your Email

Please wait a few minutes while we create your account. An email will be sent to you shortly to confirm your admittance. Should the email be delivered to your spam or promotions folder, we recommend you move it to your inbox and mark Equifund as a safe sender.

If you have not received the email in 5 minutes, please click here to have it resent.

Questions? Our customer service team is always here to help – 1-866-338-3004

Enter your email address to get instant access to the video: