Frequently Asked Questions
What is SVX US?
SVX US is a secure, online platform that allows you to invest in organizations, companies and funds that have a positive social and/or environmental impact alongside the potential for financial return. We provide a marketplace for raising capital and making investments. We work across sectors including cleantech, health, education, food, and social inclusion to help issuers raise capital so they can focus on their business. We work with all investors, from foundations and family offices to everyday investors, to help them make good impact investments through education, due diligence, advice, and transaction support and management. SVX US is your single access point if you want to align your investments with your values or if you want to connect with investors seeking impact alongside return. The SVX US website is operated by SVX US LLC. All securities related activity is conducted through Bequia Securities, LLC., a SEC and FINRA registered Broker-Dealer and member of FINRA | SIPC.
How does SVX US work?
SVX US is a market enabled by good technology, a solid team, and well established rules. SVX US leverages the right financial technology and expertise alongside available state and national securities regulations to support capital raising by impact ventures, funds and organizations and impact investing by individuals and institutions. This involves traditional private placements as well as innovative approaches to engage community through direct public offerings. These are considered exempt securities (more information on that below). Investors and issuers can manage their investments on the platform, have 24-hour access to all documents in one place, and make transactions through the platform.
For entrepreneurs, SVX US allows you to list your company and its securities, tailor your fundraising page, and bring on investors. You can manage investments and communicate with your investors directly, all through the platform. You decide the entry level, raise amount, and investment terms and keep all of your funding needs in one place. We manage the interested investor transactions via the platform. Simple! SVX US is all about putting control back into the hands of the investors and entrepreneurs to create opportunity.
For investors, you can log in online and view active investing opportunites. You are able to view information about the company, including financial history and traction, and decide if you are interested in investing. If you are, we will walk you through the process and then you can make the transaction directly online. You are able to keep in touch with your investees through our investor dashboard. Streamlined, simple, and straightforward.
What do you mean by "Impact"?
We seek to advance social and environmental change in the United States and around the world. We want to live in a world that is both sustainable and provides equal opportunities for all its citizens. For more about how we define impact and how the opportunities on our platform are screened, please visit our Impact page.
Is the website secure?
SVX US is a very secure platform. We use 128 bit encryption, the very same encryption that is used by major banks all over the world. We also set a time limit of 15 minutes for inactivity, so that your membership cannot be accessed without your knowledge if you forget to log out.
Where can I find a glossary that helps me understand all of these investment terms?
Glad you asked! We created a full Glossary of Terms for your interest. You can access the glossary any time by finding it in the footer of the website. Happy reading! There will be a pop quiz later, so study hard.
How can we get in touch with you to ask a question that's not listed here?
We'd love to hear from you! Please write to us at firstname.lastname@example.org.
What are the rules and regulations that govern this work?
Investing in the United States is governed by state and national securities laws and regulations. These rules are overseen by national regulators like the Securities and Exchange Commission (SEC), local state regulators and governments, and industry self-regulatory organizations like FINRA. The kinds of offerings on our platform have particular rules and requirements that are called exempt transactions (see below). As SVX US is operated in conjunction with a Broker-Dealer, we have a important duty to ensure suitability of the issuers' offerings and for investors, and to follow all the U.S. rules of capital raising and investing.
What is a Broker-Dealer and what does it mean to be registered?
You're probably familiar with the idea of investing in the public capital markets (e.g. stock exchange). Here at SVX US, we are doing something a bit different. We are offering you opportunities in the "private market" or investments that aren't typically available on public stock exchanges like the New York Stock Exchange and the NASDAQ. The financial products on SVX US are organizations, enterprises and funds that have not filed a prospectus. They tend to be smaller, have less liquidity (not like water, but more in your ability to sell them), and they can be riskier. There's more on that in the rest of the FAQ.
In the US, Broker Dealers are important players in supporting transactions in the private market. FINRA has a really good breakdown of their role, so let's take a look at what they have to say:
"A broker dealer is a person or company that is in the business of buying and selling securities — stocks, bonds, mutual funds, and certain other investment products — on behalf of its customers (as broker), for its own account (as dealer), or both. Individuals who work for broker dealers — the sales personnel whom most people call brokers—are technically known as registered representatives.
Who regulates them?
With few exceptions, broker dealers must register with the Securities and Exchange Commission (SEC) and be members of FINRA. Individual registered representatives must also register with FINRA, pass a qualifying examination, and be licensed by a state securities regulator before they can do business with you. You can obtain background information on broker dealers and registered representatives—including registration, licensing, and disciplinary history — by using FINRA BrokerCheck or by calling FINRA toll-free (800) 289-9999.
What services do they offer?
Broker dealers vary widely in the types of services they offer, falling generally into two categories — full-service and discount brokerage firms. Full-service firms typically charge more for each transaction, but they tend to have large research operations that representatives can tap into when making recommendations, can handle nearly any kind of financial transaction you want to make, and may offer investment planning or other services. Discount broker-dealer firms are usually cheaper, but you may have to research potential investments on your own — though the broker dealer websites may have a lot of information you can use. Registered representatives are primarily securities salespeople and may also go by such generic titles as financial consultant, financial advisor, or investment consultant. The products they can sell you depend on the licenses they hold. For example, a representative who has passed the Series 6 exam can sell only mutual funds, variable annuities, and similar products, while the holder of a Series 7 license can sell a broader array of securities. When a registered representative suggests that you buy or sell a particular security, he or she must have reason to believe that the recommendation is suitable for you based on a host of factors, including your income, portfolio, and overall financial situation, your tolerance for risk, and your stated investment objectives."
The SVX US website is operated by SVX US LLC. All securities related activity is conducted through Bequia Securities, LLC., a U.S. SEC registered Broker-Dealer and member of FINRA | SIPC.
What do you mean by exempt transactions?
Our issuers are able to raise money in many ways through our platform through exempt transactions. Some securities that corporations offer may be exempt from the full registration requirements of the Securities Act of 1933 due to the nature of the sale. The Securities Act of 1933 has a number of requirements for companies that raise capital including specific documentation and criteria to make an investment available, which make include qualifiying to list on a public stock exchange. This does not mean that these offerings have no requirements, but the requirements they have are different from the standard for a company listing on the stock market. Exempt transaction types include: intrastate offerings (Section 3[a] and Rule 147), Regulation A offerings (Reg A offerings), Regulation D offerings (Reg D), and Rule 144 offerings. Visit our How It Works page to understand all of the different ways an issuer can offer securities; from private placements to direct public offerings. You can also learn more by reading the handy documents in the footer below, or by visiting the Investor or Ventures and Funds FAQ sections.
Do exempt transactions eliminate all offering requirements for companies and organizations, including antifraud provisions?
There are still many rules that govern exempt transactions to protect investors. There is more about those rules below. And even securities exempt from registration are subject to antifraud rules. All securities are subject to antifraud provisions of the Securities Act of 1933, which requires issuers to provide accurate information regarding any securities offered to the public.
What is an intrastate offering?
An intrastate offering is an offering of securities within one state. For such an offering to be exempt from SEC registration, the company must be incorporated in the state in which it’s selling securities, 80 percent of its business has to be within the state, and it may sell securities only to residents. The securities still require registration at the state level. Don’t confuse intrastate offerings (securities sold in one state) with interstate offerings (securities sold in many states). Interstate offerings do need SEC registration. To help you remember, think of an interstate roadway, which continues from one state to the next.
What is a Regulation A offering?
An offering of securities worth $5 million or less within a 12-month period is Regulation A. Although this company may seem large to you, it’s relatively small in market terms. Regulation A offerings are exempt from the full registration requirements but the issuer still has to file a simplified registration or abbreviated registration statement. There are also Regulation A+ offerings with slightly different characteristics. One of our first issuers is utilizing this exemption, so we have included handy information below on it.
What is a Regulation D offering?
Also known as a private placement, a Regulation D offering is an offering to less than 35 unaccredited investors per year. Companies who issue securities through private placement are allowed to raise an unlimited amount of money but are limited in terms of the number of unaccredited investors. Sales of Reg D securities are subject to the sales limitations set forth under Rule 144.
An accredited investor is generally one with a net worth of $1 million or more or an investor who has had a yearly income of at least $200,000 (for an individual investor) or $300,000 (for joint income with spouse) for the previous two years and is expected to earn at least that much in the current year.
What is Regulation A+?
Regulation A was revised in March 2015 (now known as "Reg A+) to implement Section 401 of the Jumpstart Our Business Startups (JOBS) Act. Unlike IPOs, which require a registration with the Securities and Exchange Commission ("SEC"), Reg A+ is an exemption from registration for public offerings, but the disclosures required under this exemption are similar to those required in registered offerings.
Reg A+ includes two offering tiers: Tier 1, for offerings of up to $20 million in a 12-month period; and Tier 2, for offerings of up to $50 million in a 12-month period.
What securities can be sold via a Reg A+?
The securities that may be offered under Regulation A+ are equity securities (e.g. stocks), warrants, debt securities, and debt securities that are convertible into or exchangeable into equity interests, including guarantees of such securities.
How Can Reg A+ Securities be Offered?
Reg A+ can be used in a direct public offering ("DPO") via general solicitation to everyone. This allows a venture to offer an investment opportunity to their whole community and not limit investors to only the wealthiest in their networks. Companies can also advertise and market their offering in any manner they desire to have the greatest potential reach. Reg A+ has some advantages over other DPO strategies: Unlike the intrastate strategy, investors can come from multiple states; and unlike Rule 504, it can be used to raise more than $5 million.
A Reg A+ can also be offered via a registered placement agent (a.k.a. a broker-dealer), which then becomes responsible for ensuring "know-your-customer," "bad actor," and "suitability" standards on behalf of the issuer company.
Which companies are eligible to use Reg A+?
The exemption is generally available to any non-public U.S. and Canadian company. However, the following issuers are not eligible to use the exemption: (1) an investment company registered or required to be registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940; (2) a blank check company; and (3) an issuer that is disqualified under the SEC's "bad actor" disqualification rules.
What About State Preemption and State Registration?
Tier 2 offerings, once approved by the SEC, are nationwide and issuers are not required to register or qualify their offerings with state securities regulators (i.e. no "Blue-Sky" registration). Tier 2 preempts state registration laws, but states will continue to require issuers to file and pay a filing fee before offering in their states. With Tier 1 offerings, states still require companies to register or qualify their offering in any state in which they seek to offer or sell securities. Registration requirements vary by state.
What are the Investor limitations in a Reg A+ Offering?
Both accredited and non-accredited investors may invest in Tier 1 and Tier 2 offerings. However, additional limitations apply on the amount of money a non-accredited investor may invest in a Tier 2 offering. A company seeking qualification pursuant to Tier 2 is required to limit the amount of securities that a non-accredited investor to no more than:
- 10% of the greater of annual income or net worth (for natural persons); or
- 10% of the greater of annual revenue, or net assets at fiscal year-end (for non-natural persons)
What is the general process for a Reg A+ offering?
The Reg A+ offering process is initiated when a company submits an offering statement and other information, known as Form 1-A, with the SEC. Assuming SEC review finds nothing problematic or objectionable, the Form 1-A offering statement is declared "qualified" by a "notice of qualification" (as opposed to "effective" in a traditional IPO context).
How Does "Testing the Waters" Work?
The "Test the Waters" provisions of Reg A+ allow companies to solicit interest in their contemplated securities offering before filing an offering statement with the SEC, or before the filing has been qualified. This gives companies the opportunity of being able to determine whether enough market interest in their securities exists before they incur the full range of legal, accounting, and other costs associated with preparing and filing an offering statement with the SEC. Companies that "test the waters" under Reg A+ are required to include certain language ("legends"), in their solicitation materials that generally notifies investors that no money for securities is currently being solicited or will be accepted if sent, and that any indications of interest received by the company from potential investors are non-binding. If the "Test the Waters" provision is used, issuers may only proceed with Tier 2 offerings.
What are the Disclosure and Financial Requirements for a Reg A+ Offering?
Tier 1 and Tier 2 issuers are required to provide balance sheets and other required financial statements for the two most recently completed fiscal years or for such shorter time that the company has been in existence. Issuers in Tier 2 offerings are required to include 2 years of audited financial statements (or for such shorter time that the company has been in existence).
What are the Ongoing Reporting Requirements for a Reg A+?
Issuers of Tier 1 offerings are required to update certain issuer information not later than 30 calendar days after termination or completion of an offering. Issuers of Tier 2 offerings are required to file ongoing annual reports and semi-annual reports, current event updates as well as a filing after the termination or completion of an offering.
How Does Confidentiality Work with Reg A+ Offerings?
Companies that have not previously sold securities under a qualified Reg A+ offering may submit a draft offering statement for confidential SEC staff review. The non-public draft offering statement and any amendments to it must be publicly filed on SEC's EDGAR system no less than 21 calendar days prior to the qualification of the public filing. In addition, companies may request confidentiality of certain information or documents by filing the appropriate forms with the SEC - a procedure by which persons submitting information may request that it be withheld when requested under the Freedom of Information Act.
Are There any "Integration" Issues with Reg A+ Offerings and Other Offerings?
Reg A+ has several safe harbors so that a Reg A+ offering will not be considered "integrated" with any previously closed offerings, a subsequent crowdfunding offering and in cases where the issuer can comply with the terms of both offerings independently, such as conducting a simultaneous Reg D, Rule 506(c) offering.
Are there Resale Restrictions for Reg A+ Offerings?
Securities sold in a Reg A+ offering are not considered "restricted securities" for purposes of aftermarket resales. "Restricted securities" are securities issued in private offerings that must be held by purchasers for a certain period before they may be resold.
If there are Many Shareholders in a Reg A+ Offering, Will the Company Need to Register its Class of Securities Under Section 12(g) of the Securities Exchange Act of 1934 (i.e. Become a "Publicly Reporting Company")?
Section 12(g) of the Securities Exchange Act of 1934 provides that an issuer must register a class of equity securities with the SEC if, on the last day of the issuer's fiscal year, the issuer had total assets in excess of $10 million and a class of equity securities held of record by either (i) 2,000 persons or (ii) 500 persons who are not accredited investors.
Reg A+ provides a limited exemption for securities issued in a Tier 2 offering from this Section 12(g) holder of record threshold when the issuer is subject to, and current in, its Reg A+ periodic reporting obligations. To benefit from this conditional exemption, an issuer must retain the services of a transfer agent and have a public float of less than $75 million or, in the absence of a float, revenues of less than $50 million.
An issuer that exceeds the Section 12(g) threshold will have a two-year transition period before it is required to register its class of securities under Section 12(g) of the Exchange Act.
Can the company also list its securities on the NYSE or Nasdaq trading?
Yes. Reg A+ permits an issuer in a Tier 2 offering to voluntarily register a class of Reg A+ securities under the Exchange Act.
With some exceptions, an issuer that completed a Reg A+ offering and sought to list a class of securities on a national securities exchange will incur the costs and the timing delays associated with preparing and filing a separate registration statement on Form 10. A company engaged in a Tier 2 offering that has provided disclosure in Part II of Form 1-A that complies with Part 1 of Form S-1 (or for REITs, Form S-11) is permitted to file a Form 8-A short form registration statement to list its securities on a national securities exchange. This short form registration statement process is similar to a traditional IPO where a Form 8-A is filed along with a Form S-1 (or S-11 for REITs). A company that follows this path would thereafter be subject to Exchange Act reporting requirements and enters the reporting regime as an emerging growth company.
Does it cost anything to be a part of the SVX US investor community?
No! You can sign-up for free to be a part of our investor community and to view investment opportunities on SVX US. There is also no cost to you when you invest in an offering. Issuers pay a modest up-front fee to set-up their campaign and a small percentage transaction fee to pay the cost of capital raising.
Where in the US is SVX US available?
SVX US is currently accessible for investors across the United States. The state(s) or territories that an offering is available depends on where a particular offering is filed. Please review each profile to determine whether it is available to residents in your state.
How do you verify my identity?
We will do a quick check to verify your identity using a secure tool called Trulioo to comply with anti-money laundering and know your customer regulations. Trulioo is a fintech company based in Vancouver, British Columbia that offers identity verification services for businesses and organizations worldwide using government and private databases. In general, we will collect your name and date of birth, and that information is checked against a large database to confirm you are, well: you. If, for some reason, we can't confirm your identity using Trulioo, we'll be in touch to try to use one of the other methods approved by regulators.
Why do you need to verify my identity?
Unfortunately, some people may want to take advantage of securities exemptions and online platforms to launder money earned through nefarious practices. We want to make sure the folks on SVX US are real people, living in the United States. This helps us protect the integrity of the platform for both the investor, and venture and fund community.
Can I register to make an investment on SVX without using the online form?
You can! Please Contact Us and we would be happy to send you a fillable electronic form, mail you a paper copy, or complete your registration over the phone.
What are the risks of investing in exempt transactions, including early stage companies?
Investing in exempt transactions, including early stage companies, has significant risk. It is not like investing in the stock market, a GIC, or a mutual fund. You shouldn't allocate a large percentage of your retirement savings or your general investment portfolio to investing in these opportunities. Sometimes these investments don't turn out as planned, so you need to be in a financial position to handle the hit and be aware that you are not guaranteed a return. Also, private market securities are less liquid than public market securities, so you need to be able to put that investment away for a while without needing access to the cash immediately.
How can I manage my risks?
Investing in exempt market offerings has significant risk. You can't eliminate risks in investing, but you can find ways to manage them. You may consider investing in sectors or companies that you know well, and particularly those ventures you may support as a customer or user. Investing in what you know and believe in will help you better manage risk. You should also consider diversifying your portfolio of issuers, and spreading your risk across a number of potential investments.
Can I re-sell my investment?
You should assume you cannot re-sell your investment. Most of these investments have resale restrictions, as private companies and funds carefully manage the number and type of shareholders they have as investors. Moreover, there is no liquid secondary market for private companies and funds, which means there is no known platform for you to re-sell your investment to other investors.
Will my investments have voting rights?
It is unlikely that you will be offered voting rights, and you should presume that your investment does not include these voting rights unless it is outlined in your investment agreement.
Making an Investment
What types of investments are offered on SVX US?
We bring on social and environmental ventures of all types - from early-stage, scaling ventures, to funds that invest directly themselves, to nonprofits offering debt opportunities. Every opportunity is vetted by the SVX US team and an issuer review committee. We review the financials, business model, and team members to make sure it's a viable investment product. Then we share this diligence with our investors. That way, we have deals that investors can get behind, and we take a load off the investor's back in terms of evaluation.
What documentation and information is provided to support my decision making process?
Make sure you are well-informed before you make any investment. On SVX US, every issuer has completed a profile including background on the business, organization and/or fund and key documentation such as business plans, financials, pitch decks, term sheets, and subscription agreements. Before you invest, you will be asked to review and sign a subscription agreement or other similar documentation that clearly outlines the terms of the investment.
Is the website secure for investors?
Secure Socket Layer (SSL): Our platform has a 2048 bit Extended Validation (EV) SSL Certificate installed from our preferred provider, which uses the highest level of authentication.
Secured Hosting: We use Amazon Web Services’ (AWS) infrastructure for the security certifications. AWS has obtained including ISO 27001 certification.
Payments: Payments are made through ACH on our secure platform after being approved by the SVX US team or the associated broker dealer if one is used. Some offerings may also use an escrow account to hold funds before the campaign closes.
What is the difference between debt and equity?
The basic differences between the debt and equity markets include the type of financial interest they represent, the way in which they generate profits for investors, how they are traded, and their respective risk levels. Both debt securities and equity investments have the potential to deliver significant returns.
Equity financing often means issuing additional shares of common stock to an investor. With more shares of common stock issued and outstanding, the previous stockholders' percentage of ownership decreases.
Debt financing means borrowing money and not giving up ownership.
Do I have to pay a fee to the SVX US to see these deals or at the time of investments?
No, investors are not charged for using the platform. As an investor, your money goes directly to the issuer who is raising money so they can use it as effectively as possible. They pay a small fee to access the platform and a small transaction fee (e.g. 2.5-7%) to process every investment that is made on SVX US.
How do I apply to invest?
If you are eligible to invest, click on the Invest button on the issuer's profile. Indicate how much you'd like to invest, choose your payment method, then sign the contract. If this is your first investment, we may need to get a bit more background information from you to confirm your eligibility and help you make the investment. Once we have reviewed this information, we will contact you to ask a few questions, to confirm the investment, or to let you know that we cannot process the investment at this time.
How long does it take for you to review my investment?
We will contact you within two (2) business days, unless there are special circumstances. To ensure the funds are available for the investment, our payment gateway will withdraw the amount you've invested and will hold it in trust while we review your eligibility to make the investment. As a regulated platform, we want to make sure you understand the risks, and can afford to make your desired investment. The size of your investment may be reduced to a lower amount or may be rejected, in which case all funds will be returned to your account with no fees.
How do I make a payment for my investment?
All transactions are made through the platform, so money is quickly and easily transferred online. Payments on platform are processed via an ACH transfer. You will be asked to input your banking information via a secure portal to make your investment. We can also manage offline payments via check or wire transfer.
What is escrow?
Escrow is when an impartial third party holds on to something of value during a transaction. Funds are only transferred to the company when approved by the SVX US team. This may be when a campaign is closed and meets its fundraising target.
How are documents signed?
We want to make this process as simple and easy as possible, so we work to ensure everything is signed electronically. Once you have signed a contract or document, it will be emailed to you in a .pdf file or placed on your investor page on SVX US.
How much can I invest?
The amount you can invest depends on your investor status and the type of investment.
When do I get my investment document (eg. the securities)?
Once an investment is successfully executed, you will get an email with your investment contract (e.g. shareholder agreement). This will typically take place at the end of the campaign. You may also be able to view this document on your online investor profile.
What if I change my mind about my investment?
If you decide to change your mind about your investment, you have 48 hours to cancel or withdraw the investment. You also have the right to withdraw your investment within 48 hours of the funding portal informing you of an amendment to the offering document.
Can a venture, fund, or SVX US cancel my investment?
It is unlikely that your investment will be cancelled, but it can happen. A venture or fund may cancel your investment for any reason, such as your involvement with a competitor. SVX US may also cancel an investment if we have a reasonable concern with the status of an investor or issuer. Your investment cannot be cancelled once the capital raise campaign has closed and your funds have been transferred to the issuer. If an escrow agent is used by an issuer or broker dealer and your investment is cancelled while held by the escrow agent, your funds will be returned by that escrow agent.
What happens if a campaign fails to reach its fundraising target?
Does SVX US charge a fee to companies and funds for each investment?
As an investor, you don't pay anything. Our issuers pay an up-front fee and a fee for support of their transactions. The up-front fee ranges between $5,000 - $50,000 for review and support depending on what is needed, and then we charge a transaction fee for each investment of between 2.5-7%.
Do I have any liability as an investor in a particular company?
You should always review investment documentation to understand your role, requirements, and liability as an investor. However, we request that companies raising equity financing issue shares with limited liability. This means that you would not be accountable for legal actions against the company, bankruptcy, fees of the business, or any other liabilities. Your liability is limited to the amount of money that you invest.
How will my investment be used by the companies I invest in through SVX US?
When you are reviewing the offering materials, please look carefully at the Use of Funds section. This should outline how all investment dollars will be spent and, ideally, in what priority or proportion of the capital raised. Also, under the crowdfunding and offering memorandum exemptions, the issuer has to let you know on an annual basis how the funds are being used.
Can I make a return on my investment?
The type of return you can make depends on the type of financial product you invest in.
- If your investment is a fixed income product like debt (a loan), the venture will arrange to pay you in regular installments as laid out in the agreement.
- If you make a direct equity investment, the company can return capital in a few different ways. If they are acquired by another company, you can sell your equity shares to make money. Or, if they go public, you can sell your shares on the open market. The company may also decide to pay a dividend to their shareholders. There may be many terms and conditions on the shares you are purchasing so we encourage you to have a lawyer review your investment to ensure you fully understand your rights as an investor.
- If you make a fund investment, your return depends on the performance of the fund and the contract you sign with the partnership.
- And sometimes, you can also sell your investment to other buyers in the private markets.
Each deal you make will lay out the terms so you can understand the upside and risks. All that said, remember that private markets investment returns are not guaranteed.
How do I make a return on my investment?
In the case of a traditional equity investment (e.g. a common share), if the company is successful, the value of the stock can increase with each subsequent round of financing, until the company is acquired or goes public. This is known as an "exit." At this point, you can sell your stock. In the case of a debt investment, you would be scheduled to receive regular payments on your investment over a pre-defined term (e.g. 5 years). At the end of that term, you would receive the principal back on your investment (e/g. the amount you invested when you put money into the issuer on SVX US).
When will I receive a return on my investment?
The timeline for your return depends on the type of investment and it is different for each company or fund. In the case of an traditional start-up equity investment, you may not receive a return on your investment for many years, and you may not receive a return at all. Many start-up or early stage venture investments take seven (7) or more years to earn a return, while you wait for the company to go public, get acquired, or buy-out certain investors.
Will I receive updates from the issuer?
The requirements for updates by issuers varies per exemption type. Under some exemptions, the investor can expect to receive annual financial statements, a notice of key events that took place, and information of how the funds were used. Please read the offering materials and contact us if you have any questions before you make the investment to ensure you have a full understanding of the frequency and type of reporting made by issuers. There is also handy information on reporting requirements in our General FAQs section for certain types of offerings.
Can I contact the issuer directly?
Yes, you may contact the issuer directly or through our portal.
Ventures and Funds
What is the process to sign up?
It's easy! If you're a venture, simply click on the link to Sign Up. We will need to learn about your venture and investment offering through your application. We will be in touch to go over the details of your submission and ensure you know the ins and outs of raising capital. After a review with our Issuer Review Committee, made up of experts and investors, we will process a background check of your directors and senior officers and your offering will be ready to be listed online!
How long does the registration and review process take?
We will guide you through the process of onboarding and review. It can take between a few weeks and a few months to get a campaign set-up, depending on your level of investment readiness. We want to make sure you are ready to go to market and have all the ingredients for success before you start. You can take a look at our criteria below or contact us for more information at email@example.com.
How does the SVX US support me?
SVX US supports impact ventures by helping you:
- Prepare or review offering documents ahead of your raise;
- Raise capital through our network of investors committed to companies that deliver strong financial and social/environmental return; and
- Complete regulatory obligations to investors and the securities regulatory authority by acquiring and preparing requisite forms and documentation via the SVX US platform. We hope to help and reduce costs of reporting and legal obligations for issuers throughout the lifetime of an investment.
What other services do you offer for ventures?
In addition to our online platform, we can provide off-line programming for selected impact ventures to help build their business and offering. Contact us for more information or check our website and social media regularly for new program topics and calls for applications.
What features of the SVX US website will help me market my opportunity?
Our platform offers a number of ways to support your capital raise and manage investors. Here is just a taste of what you'll get if you register:
- Video and picture integration
- Real-time project progress bar
- Track received funds
- Track investor information
- Automatic notifications
- Campaign email updates
- Customizable automated email confirmations
- Email and online support
- Document management system (quarterly filings, compliance filings)
- Investment photo gallery
- Investment capital stack (capital structure)
- Investment offering and documentation
- Management team bios and experience
- Investment updates
This isn't all. You also get the support of the SVX US team actively working to share your offering with the SVX US Investor Community. Sign up to get started and see everything the platform has to offer!
How much does it cost to use SVX US?
Our mission is to increase access to capital for impact ventures, funds and organizations at a reasonable cost. Our fee schedule is as follows:
- Review and Set-up Fee: Ventures pay an up-front fee to cover our review and support costs to get on the platform, including background checks and due diligence. We also charge a monthly fee to maintain offerings on the platform.
- Transaction Fee: Once on the platform, ventures pay a transaction fee to process every investment that is made on SVX. The fees are between 2-7% of capital raised.
How do I know whether I am a fit for SVX US?
It is important for you to meet both our platform and industry standards. There are a number of industry requirements of investment offering exemptions by securities regulators in the United States of America. You can read more about those requirements in our regulations document. Our platform standards are simple. We work with companies at a variety of stages, from start-up to growth to scale, and we look for the following:
- Sector Alignment: Clean technology, work and learning, health and wellness, food, and social inclusion
- Incorporated: Incorporated for-profit or not for-profit (includes co-operatives)
- Operating History: Minimum one (1) year operating history
- Market Traction: Existing revenue, customers, and/or investment
- Business Plan: Business plan that demonstrates understanding of long-term finances, operations, and strategy
- Impact: Ventures must be a B Corp or reach 80 on the B Impact Assessment and provide five (5) key impact metrics
- Team: Full time team member(s) with evidence of relevant expertise on leadership team
- Coachability: Management is coachable and responsive to feedback
- Scalability: Potential for deep local or national/global scale
- Sustainability: Entity and investment are sustainable with reasonable profitability
- We will also ask you for important documents including financial statements, articles of incorporation, a term sheet, background check forms, and business references.
What fundraising exemptions can you use on SVX US?
Our platform supports a variety of offerings including Reg D, Reg A/A+, DPOs, and more. Please contact for more information.
What kind of issuers can use SVX US?
We are sector agnostic. We work with for-profits and non-profits, including co-operatives.
What are the geographic requirements for SVX US issuers?
At this time we're only able to service US-based companies and organizations. However, we're delighted to have partners in the Canada and Mexico who can help you if you're based there. Please contact us for more details at firstname.lastname@example.org
What kinds of securities can I offer?
How much work do I have to do to promote my campaign?
We will work really hard to help you raise capital! However, simply putting an offering on a website and waiting for the money to roll in won't get your campaign across the line. Your job will be to bring your community on board, and to combine it with our networks.
Do you have any template investment contracts?
We do! Please email us at email@example.com and we can provide you with a bit of guidance and a few examples that we hope will help.
Do investors have voting rights?
What is the minimum and maximum I can raise?
The minimum you can generally raise on the platform is $5,000,000. The maximum raise is dependent on the type of investors and exemption that you are using for your offering.
Can I complete my entire raise on the platform?
How do I receive an investment?
All transactions are made through the platform, so money is quickly and easily transferred online. Funds may be held in escrow until the campaign is complete, until a milestone is met, or on a schedule agreed before the campaign starts. If you reach your campaign target, the funds are directly transferred to your bank account.
Is there a time limit on my investment offering?
Your campaign time period is dependent on the exemption you are employing to carry out the capital raise campaign.
Why should I raise capital here instead of raising capital by myself?
We definitely encourage you to continue actively raising capital with your own network. We think of raising capital with the SVX US as simply expanding that reach and network. We have spent a lot of time getting to know our community and it is growing everyday. With the SVX US platform, you get access to a community of engaged investors that are actively seeking to invest in strong ventures with compelling social and/or environmental impact built into their business model.
What information and documentation is shared with investors on the platform?
We can help you compile and prepare your materials to help you meet regulatory standards and to help investors with sufficient information for effective decision-making. And we have templates to guide you along the way. In general, investors would be able to view your profile page with background on the organization, management, business, and an offering summary. The profile page will also include links to key documentation that is accessible based on the investor type and ability of documentation to be made available.
What if my campaign fails to reach its target?
This depends on the type of campaign. Some offerings are "All or Nothing". This means if your target is not reached, all funds collected will be returned to investors. These types of campaigns would require an escrow account to hold funds in trust until the campaign has been successful. But you can re-launch a new campaign.
Other campaigns will have rolling closes, accepting investments as they are made and having them transferred to the issuer, regardless of the target being met.
The SVX US team will work with you to figure out the right campaign style for your offering.
How do I close my campaign?
Once your fundraising target has been met, you can close your capital raising campaign. If you close your campaign before the target close date, you should notify your investors.
Can you help me manage my cap table for investors on platform and investors I have secured on my own?
Can I extend my campaign period?
Yes, you can extend your campaign period. This is relatively easy for a private placement campaign. In the case of a Reg A+, DPO or other campaign made available to the general public, this would be a "material change" requiring confirmation from all of your investors. This does require a bit of work, but it can be easier than failing at a capital raise campaign.
What are the limits on advertising and promoting my capital raise campaign?
You may advertise and promote your product on SVX US but you just want to make sure that it complies with securities legislation and that material is always presented in a fair and blanced way, ensuring it is not misleading and does not contain any material that cannot be reasonably supported. In terms of general promotion, you may inform customers and clients that you are proposing to offer your securities under a particular exemption and then refer them to the SVX US funding portal. Promotional material outlining any detailed terms of the offering can only be posted on the platform and channels as approved by the appropriate regulators.
How long does it take to get my campaign funds?
How often do I need to provide investor updates?
At minimum, you should provide investors with annual updates. Many investors would appreciate or require more regular updates, either on a semiannually or quarterly basis.
Do I need to file an annual report?
You may need to! You have to file annual financial statements with your investors and notify them about how you use the funds. Please refer to appropriate regulations before the campaign starts to ensure you understand and can fulfill your reporting obligations. We have some handy information on requirements for certain exemptions in our General FAQs section.
How can you help me keep investors updated?
You can use the SVX US platform to keep your investors updated by sharing your financials, annual impact reports, and interesting updates on your business.