TechSoup Risk Capital - 5%

Question and Answer

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I just went through the SVX registration and accreditation process. There's a lot of personal financial information that is required. Is this shared with TechSoup?

The information provided for the onboarding process is 100% confidential and is not shared with TechSoup. The information submitted in the subscription agreement (where bank information is provided for repayment) is shared back with TechSoup. Information such as income sources, risk tolerance, investment portfolio size, net worth, etc., are not shared beyond the SVX.US compliance team.

As a nonprofit, how do you plan on providing 2-5% interest on my investment?

TechSoup is a nonprofit social enterprise that gets approximately 90% of its revenue from earned income, instead of donations. This earned income structure enables us, as a nonprofit, to receive investment in the form of debt securities and invest it to grow our revenue and operating efficiencies through 5 strategic initiatives, so we can repay investors after five years with interest. Much of our earned income comes from fees we charge to the nonprofits we serve to cover the cost of our operations and from fee-based services we provide to our corporate and foundation partners. For more information about our growth strategy, please review the executive summary which describes TechSoup's use of proceeds in greater detail. You can also review our full offering circular and related documents qualified by the Securities & Exchange Commission, and background on TechSoup's Growth Capital Campaign.

What makes TechSoup uniquely positioned to do this type of DPO? In other words, why haven’t other nonprofit organizations attempted this before?

There have been changes in securities laws over the last three to four years that make it easier for nonprofits and smaller businesses to raise capital through crowdfunded investments. Some nonprofits are doing offerings regulated by state governments to raise capital from community members in their region. Because we have stakeholders in all 50 states, we wanted to do a nationwide offering. We're the first nonprofit to do the type of Reg A+ Tier 2 offering qualified by the SEC that enables us to engage members of our community in all 50 states.

Is it possible to invest more than once in the DPO?

Yes - investors may invest more than one time.

I've never heard of this type of investment before. Why should a small investor like me be interested in trying out this new type of social/financial investment? Why would I choose this over a CD, for example?

There are several reasons why investing $50 or more in TechSoup's DPO might be done: (1) Significant social impact. A $100 investment enables us to provide an additional $47,000 in value to nonprofits around the world. (2) Typically, amounts this low must be donated, but now investors can actually invest this amount. They'll get their money back after five years, plus 2 percent annual interest, unlike a donation. Investors will be able to either recycle the funds into another investment or charitable purpose after five years (getting even more social impact from that money), or repurpose the money as savings or personal funds. (It's also important to note that these investment notes are not guaranteed, so investors need to be aware of the financial risks associated with investing in an unsecured investment).

I made an investment, and my status shows as "pending." What does this mean, and how long does is take for investments to be reflected on the SVX dashboard?

Please note that processing may take several days on the SVX platform; and SVX intends to process all of the week's investments as one batch every Friday. Investments will be reflected on the dashboard when payments are processed.

I understand the financial return I will reap from investing in TechSoup, what will be the social return, what will my investment enable?

TechSoup's work enables civil society organizations and changemakers around the world to gain effective access to the resources they need to design and implement technology solutions for a more equitable planet. Investments will enable us to increase the resources we distribute globally from $1.995 billion (last year) to $4.8 billion by 2021. We intend to increase our reach to serve 1.7 million organizations around the world. For every $100 invested, we will distribute over $47,000 of additional resources (retail value) to the nonprofit sector.

In regard to the countdown timer on the investment page, I assume that this correlates to the investment window. Does that mean that folks who invest today will not start earning interest until the goal is met, or do they start earning interest immediately?

The SEC qualified our offering for a one year period starting end of September 2018. That period drives the countdown timer. Investors start earning interest immediately after investing (not starting at the end of the countdown timer). At the end of September 2019, if we haven't raised the entire $11.5M amount, we will likely submit an application to the SEC to renew the offering period for another year.


Raised in This Offering Of $3,350,000.00 Goal

Days Remaining 178
Hours 16
Mins 19
Debt Offer. Structure
5% Ann. return
5 Years Term

Year 2 of TechSoup's Growth Capital Campaign
(See chart below* for total Campaign raise to date)