Frequently Asked Questions

questionInvestor Frequently Asked Questions

What is crowdfunding about?

Crowdfunding is the funding of a project or venture through a large number of people contributing a small amount of money. Securities Crowdfunding is where contributors receive equity (e.g. stock) in return for their funding. It can also be that individuals provide a loan to the company; therefore the company is in effect selling debt. Currently Securities Crowdfunding is legal for intrastate offerings in a handful of states, including Wisconsin.

How do I know the offering is legitimate?

There are a couple of preliminary reviews that must be met before an offering is listed on  First, in order to use the crowdfunding exemption, the Company must file a disclosure document and an escrow agreement with the Wisconsin Department of Financial institutions at least 10 days before starting the offer. Second, the “bad actor” disqualification of federal Rule 506(d) applies. It is critical for you as the potential investor to review all the documents and to perform your due diligence on any company that you are looking to invest in. That review should include the Company’s management and principal owners. You are ultimately responsible for your investment decision. By law, Equity For Business, Inc. dba is barred from providing any investment advice.

Is investing in a start-up safe?

You should not invest more than you can afford to lose.  In fact to purchase an offering the issuer is required to have you sign the following statement:

I am investing in a high-risk, speculative business venture. I may lose all of my investment, or under some circumstances more than my investment, and I can afford this loss.

This offering has not been reviewed or approved by any state or federal securities commission or division or other regulatory authority and that no such person or authority has confirmed the accuracy or determined the adequacy of any disclosure made to me relating to this offering.

The securities I am acquiring in this offering are illiquid, that there is no ready market for the sale of such securities, that it may be difficult or impossible for me to sell or otherwise dispose of this investment, and that, accordingly, I may be required to hold this investment indefinitely.

I may be subject to tax on my share of the taxable income and losses of the company, whether or not I have sold or otherwise disposed of my investment or received any dividends or other distributions from the company.

Bottom line is there are definite risks. Many start-ups fail for a wide variety of reasons and it is hard to predict which will fail and which will succeed.

Why should 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.

How does work? 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  The portal works strictly on a fee for service model. offers businesses looking for capital the opportunity to post their actual offerings on our portal. An investor registers and creates an account at  After an account is created, the investor can review actual offerings.  If the investor identifies and an interesting offering and, upon completion of their due diligence, decides that they wish to invest; will facilitate the transaction between the investor and the listing company. At the beginning of an offering all 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.

If I buy a company’s offering, what do I get in exchange?

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 the due diligence and consult with your outside advisors on any of the posted investments. The posting of an investment opportunity on is not, nor does it imply, and endorsement, recommendation or vetting of the issuer or its offering by Equity for Business, Inc.

How are the issues priced?

Prices for issues are determined by the issuer. They are fixed in the offering and can’t be negotiated. Generally, an issuer will project future cash flows to the business given the proceeds of a successful offering. Equity will be priced against those projections on the given what the issuer feels is an appropriate return of return for money invested in the business.   Interest rates for debt are generally set against comparable market rates plus a risk. Revenue Participation Notes will have a fixed percentage of the top-line revenue that is shared with the RPN owners plus a Payout Cap.

Who can invest through

You must be a Wisconsin resident and 18 years old to invest in exempt offerings on How much you can invest depends on what type of investor you are.  There are three types of investors in Wisconsin: non-certified, 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 obtain evidence that sales conform to the Wisconsin exemption.

How much can I invest in an offering?

If you are an accredited investor (net worth of $1 million or more or annual income over $200,000) or a certified investor (net worth of $750,000 or more or annual income over $100,000), you have no investment cap. If you are not a certified or accredited investor, you can invest a maximum of $10,000 in a single offering.  Issuers are limited to sales of $1 million (or $2 million with audited financials) to investors who are neither certified nor accredited. (Note sales to certified and accredited investors are not capped individually nor in total.)

When a company meets its target is a company, do we receive our securities and the money released to the Company?

Money that is collected through sales is sent to a third-party escrow institution.  In Wisconsin-only offerings, this escrow institution must be a Wisconsin chartered financial institution.   The institution holds these funds until the target raise amount is met. It is not simply the amount of the funds but these funds must have been raised by investors that have evidenced their Wisconsin residency and their investor status (if their investment is over $10,000.)  Funds will only be released when the three conditions are met.

If I want the community to know I am helping fund a business, how can I let them know?

You can have yourself identified as a supporter of a business on business’s website, if you wish.  But that is entirely up to you.  You retain public anonymity if you don’t want to be identified, other than with the business owners and their agents.