- What is EarlyShares?
- How does it work?
Issuers apply on EarlyShares to raise debt or equity capital for their real estate projects or investment funds. EarlyShares screens and vets all potential issuers according to our Selection Methodologies and has a third-party partner conduct a thorough regulatory compliance and due diligence check.
Issuers who qualify are selected to post their deals to the EarlyShares platform, where investors can browse open opportunities and gain transparent access to the information they need to make informed investment decisions.
- What are the benefits?
Direct access to previously inaccessible private opportunities
Vetted deal flow of curated offerings
Transparency and due diligence into issuers
Portfolio diversification in high-potential deals
Security, trust & support on our state-of-the-art platform
An all-in-one platform for browsing, researching, and investing
Access to the EarlyShares investor database
Expanded reach to new investors worldwide
Compliance with regulations and requirements
Simplified tracking and measurement of your deal progress
Customizable deal structures and product options
Security, privacy, and access controls
- Who is eligible to invest on EarlyShares?
Under current SEC guidelines, only accredited investors can access investment opportunities on private investing platforms like EarlyShares.
- Who is an accredited investor?
Generally, an accredited investor is:
• A natural person with income exceeding $200,000 in each of the two most recent years or joint income with spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
• A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.
Other select individuals and entities may qualify as accredited investors. For the SEC’s full definition, click here.
- I am an accredited investor. How do I access information on deals on the platform?
In order to view and invest in any of the offerings listed on the site, you must register as an investor on EarlyShares and answer the accreditation questions in your EarlyShares user dashboard. If you meet the accreditation criteria and accept the other investor qualifications, you will be eligible to request access to view confidential information on any offering you are interested in. The issuer will approve or deny your request.
If you commit an investment, you will be prompted to verify your accredited investor status.
- How does the investment process work? How do I transfer funds for an investment?
The investment process can generally be described as follows:
• Create an account, self-accredit, and browse opportunities.
• Once you find a potential investment opportunity, request access to the deal.
• Once granted access, review all terms of the investment. (You will have an opportunity to review the investment documents again later during the investment process.)
Once comfortable with the investment terms, click the Invest button on the offering page. This will initiate the investment process, in which you will be asked to:
• Enter your investment amount
• E-sign the required legal agreements
• Select your accreditation verification method
Once your accreditation is confirmed, you will receive information on funding your investment commitment. Your funds will be transferred to an escrow for holding until the offering reaches its target raise goal and closes.
If you find that you are more comfortable walking through the investment with us over the phone, please contact us at [email protected] to facilitate the transaction offline.
Once the fundraising round closes, you will receive confirmation of success and counter-signed legal agreements. In the case of an unsuccessful round or a canceled investment by yourself, the proposed transaction will be cancelled and the escrow agent will return the funds from the escrow back into your bank account.
- Are these investments risky?
Investing in private assets involves a high level of risk. Therefore, it is important to be aware that in any investment opportunity, you may lose all or part of your money.
For additional information on the risks of private investing, please visit our Education Center.
- How much can I invest on EarlyShares? Is there a minimum? Is there a maximum?
The minimum and maximum investment amounts for a given opportunity are determined by the issuer raising capital and are viewable on the offering page. There is no maximum amount you can invest annually on EarlyShares.
- What if I change my mind?
After you fund your investment commitment, you will have the right of rescission – the ability to change your mind without penalty – for three business days, after which the contract is legally binding.
- Are there geographical restrictions on who can invest?
EarlyShares is not currently accepting projects or investors from Arkansas, Maine, Massachusetts, Ohio, or Utah.
- How do I know if the team members are who they claim to be?
The identities of the management team members for each investment opportunity are verified through third-party background checks. We mandate that each company provide their articles of incorporation (or similar documentation) for your review.
Each investor, however, is ultimately responsible to conduct due diligence independently. You should only make investments that you feel comfortable with.
- What are the tax implications of an investment?
We cannot give tax advice. We encourage you to talk with your accountant or tax advisor.
- I'm not in the U.S. Can I invest on EarlyShares?
Most likely, yes. Please email our team at [email protected] We may be able to guide you through a process to allow investments to be executed on your account.
- How do I contact an issuer?
Utilize the Q&A tab of the offering page to ask questions of the issuer.
- What types of opportunities are featured on EarlyShares?
EarlyShares posts investment opportunities in real estate projects and investment funds.
- How do I get my capital raise on EarlyShares?
Review the EarlyShares Selection Methodology for issuers in your sector (real estate deal or investment fund). Then, apply to raise money on EarlyShares. If you meet our qualifications and are selected, your offering will be listed on our platform.
- How long does it take to raise money?
It depends on the issuer, and not all issuers succeed in raising capital. The time it takes to complete a successful financing can vary widely, but issuers should expect that it will take around 60-90 days from start to finish.
- When do companies receive investments?
To protect investors, EarlyShares requires companies to reach a minimum funding target to have a successful fundraise. Therefore, investments are not final until the issuer raises enough money to meet its funding target. When an investor funds an investment commitment, the money is held securely in an independent escrow account. Once the funding target has been met, the money is released to the issuer.
If the funding target is not met, investments are returned promptly by the escrow agent. EarlyShares never receives or holds any investor funds during the process.
- What happens if my round is oversubscribed?
In the event that the target amount is met or exceeded in investor commitments, other investors will still be able to commit capital to your round. However, it is at the discretion of you and the company's board to approve oversubscription at round closing.
- What documents are necessary to raise money?
You should consult your own legal counsel for recommendations on what documents to include. At a minimum, key documents typically include a comprehensive investor presentation and subscription agreement. These documents should be generated by tyou and your counsel.
- Can I set a minimum investment size per investor?
Yes, you can set investment minimums during the offering preparation process.
- Will my company's information remain confidential?
Information in your overview and team sections is available to the public. Your more confidential business and investment details will only be viewable to those investors you grant access to.
- Do I need a video on my offering my page?
EarlyShares does not expressly require issuers to include videos in their offering materials, but we highly encourage them to do so. Even a 1-2 minute introduction video can help an investor get to know you and become more comfortable investing.
- What are my responsibilities as an issuer?
In order for your offering to reach its funding goal, it's crucial for you to be actively engaged in the offering process. More details are available in the Education Center, but generally we expect issuers to participate by:
• Pinpointing lead investors and obtaining soft commitments from them in advance of an offering going live
• Inviting members of their network to the EarlyShares platform to watch and invest in the deal
• Staying in contact with EarlyShares throughout the offering process and executing on marketing suggestions from our team
• Pursuing investors offline and directing them to EarlyShares for further information
- How do I ensure all investors in my offering are accredited?
The SEC guidelines for General Solicitation investment offerings stipulate that issuers must take 'reasonable steps to verify' the accredited investor status of individuals or entities that invest in their offerings. EarlyShares conducts this investor verification on behalf of issuers by requesting investors to furnish us with documentation proving their investor status. Issuers are encouraged to save and document all investor verification information furnished to them by EarlyShares and to take additional verification steps when and if appropriate.