What is Crowdfunding?
Crowdfunding is the funding of a project or venture through a large number of people contributing a small amount of money.
What is Securities Crowdfunding?
Securities Crowdfunding is where contributors receive either equity (e.g. stock) in return for their funding and/or a note that obligate the Company to pay back funding with interest. Currently Securities Crowdfunding is legal for intrastate offerings in a handful of states, including Wisconsin.
How do entrepreneurs and investors get together?
In Wisconsin, the securities crowdfunding exemption is for registered intra-state offerings that are listed on an internet site called a funding portal operated by a registered internet site operator. Equity For Business Inc. operates www.MoolaPitch.com, as funding portal. MoolaPitch.com is designed to connect Wisconsin businesses with Wisconsin businesses to raise funds for new or growing businesses. Through MoolaPitch.com, we facilitate the connection between investors and fund raising businesses, provide the transactional framework, monitor the progress of the raise and if desired can provide a communication platform post raise.
How does MoolaPitch.com work?
MoolaPitch.com is owned and operated by Equity for Business Inc. Equity for Business Inc. is a Wisconsin corporation and a Wisconsin Department of Financial Institutions registered Internet site operator formed for the sole purpose of providing a crowdfunding portal that brings together entrepreneurial needs to raise capital and investor desire for investment opportunities in start-up and growing Wisconsin companies. Equity for Business Inc. is not a broker dealer and earns no commission or success fees for the offering on MoolaPitch.com. The portal works strictly on a fee for service model. MoolaPitch.com offers businesses looking for capital the opportunity to assess potential interest in potential offering and/or to post their actual offerings on the portal. An investor registers and creates an account at www.MoolaPitch.com. After an account is created, the investor can review listings that are soliciting interest and actual offerings. If the investor finds a listing they are interested in, they can indicate their level of interest. Alternatively, if the investor identifies an interesting offering and, upon completion of their due diligence, decides that they wish to invest; MoolaPitch.com will facilitate the transaction between the investor and the listing company. At the beginning of an offering all investor funds will be held in a third-party, escrow account. If the business does not get commitments for a minimum funding, all investors’ funds are returned to them in full. Alternatively with a successful raise, each investor will receive a specified amount of equity shares in the business or debt obligation notes from the business when the minimum funding level is reached. Additional sales of the offering beyond the minimum are completed without escrow up to the total amount of the raise.
Why would I invest in a startup?
Most investors are looking to make a return on their investment. Beyond that, many investors want to help local companies, the local economy or a product or service they feel has promise and deserves to be supported.
If investors back a crowdfunding startup, what do they get?
Although companies (i.e, issuers) can sell securities that fit their needs, MoolaPitch urges entrepreneurs to list revenue participation notes. (See What are revenue participation notes?) However, companies may sell some form of equity—stock in a corporation or membership interests in a LLC. Alternatively, an issuer may sell some other form of interest bearing debt. In addition, other issuers may provide additional incentives such as invites to special events or discounted product. All investors must understand that these types of investments are risky and any investor should be willing and able to accept the possibility of losing their entire investment. You need to exercise caution, perform your due diligence and consult with your outside advisors on any of the posted investments. Equity for Business is prohibited by Wisconsin statute from providing any investment advice. The posting of an investment opportunity on www.MoolaPitch.com is not, nor does it imply, any endorsement, recommendation or vetting of the issuer or its offering by Equity for Business Inc.
Who can invest through MoolaPitch.com?
You must be a Wisconsin resident and 18 years old to invest in exempt offerings on MoolaPitch.com. How much you can invest depends on what type of investor you are. There are three types of investors: non-accredited, certified and accredited. We will ask you to fill out a simple information form when you get started so we can determine which type you are. Your Wisconsin residence and investor type will also be confirmed by the issuer who is required to confirm that sales conform to the Wisconsin exemption.
How does MoolaPitch.com protect my secure personal and company information?
MoolaPitch.com recognizes the importance of keeping information confidential. We use 256-bit encryption through SSL True Business ID with Extended Validation. This is the highest level of SSL authentication.