EquityDoor was founded by a small team with a big vision. Started as real estate crowfunding portal with a a vision to make investing in the income-based real estate market a reality for every potential investor, the company has expanded to a wider number of industries such as tech and consumer goods startups.

EquityDoor believes that by eliminating the traditional cost, complexity and reliance on big banks and insiders, EquityDoor opens the door to build equity for anyone.

EquityDoor is a private, safe, and user-friendly online platform for crowdfunding that connects equity investors, issuers, creators, and innovators. Investors can invest as little as $1,000 in various investment opportunities. Using the platform, investors can evaluate investment offers and materials, such as legal documents and due diligence materials, enabling them to make informed investment decisions in the listed projects.

EquityDoor offers secure and streamlined document handling, signature capture, and electronic fund transfers so that investors and issuers can complete their entire transaction through our secure website.

EquityDoor, LLC: Is an EquityDoor entity that handles the Reg CF projects.

EquityDoorCap, LLC: Is an EquityDoor entity that handles Reg D 506C and Reg A+ campaigns.

Investor: Any person who commits capital to an issuer’s project.

Issuer: Project owner, creators, and innovators, also known as the “Issuers” are the project or crowdfunding proponents who offers equity share to its investors.

Investor: Browse and view projects details on the portal. Once you have are ready to invest create an account and a profile to invest.

Issuer: Register and Create a password. Fill out the Initial Review application and an EquityDoor representative will contact you for other details.

Investor: No, free to invest

Issuer: No sign-up fees, but there are costs and commissions in setting up a project for crowdfunding.

Reg CF: Regulation Crowdfunding or Reg CF is a means for startups to raise funding from the general public. Reg CF was created by Title III of the JOBS Act that allows companies to raise money by soliciting investments from groups of people.

Under the SEC’s new rules, companies can now raise up to $5 million under Reg CF over the course of 12 months. The new regulations allow non-accredited investors to contribute up to $2,200 or $107,000 per year depending on the individual’s net worth. The company must file detailed disclosures with the SEC and provide audited financial statements to potential investors.

Reg D 506C: Rule 506(c) of Regulation D is a type of exemption that allows issuers to raise capital and broadly solicit and generally advertise an offering, provided that:

1. All purchasers in the offering are accredited investors.
2. The issuer takes reasonable steps to verify purchasers’ accredited investor status and certain other conditions.

Reg A+: Regulation A is an exemption from registration for public offerings. Regulation A has 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 $75 million in a 12-month period. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier 1 or Tier 2.

These offerings are known as “Mini IPOs,” and they allow companies to raise capital from both accredited and non-accredited investors (subject to some limitations) without having to go through the full IPO process. This means that companies can avoid the cost and time associated with having to file with the SEC, as well as other regulatory requirements, in order to get their business off the ground.

No, EquityDoor is neither a broker/dealer nor affiliated with any broker/dealer.

EquityDoor is a crowdfunding portal that offers its services to any issuers and investors as long as they met the regulatory requirements.

Projects are posted to the portal once they are reviewed and checked by Crowdcheck for BAD actor.

Complete listing information will include general information about the specific project and also the associated legal documents that contain detailed “risk factors”.  Each investment project has a funding target that has been determined by the project owner, but the final combined investment made may be more than the target amount based on the success of the raise and the other capital commitments of the project owner.

EquityDoor’s escrow service typically will not collect funds until the project is approaching the time of the expected closing.

If the project falls significantly short of attaining targeted funding, or the transaction otherwise fails to close, 100% of your investment commitment will be returned to you.  If there is a material change to the terms of an offering or to the information provided by the issuer, EquityDoor must notify investors of the material change and each investor must reconfirm his or her investment commitment within five business days of receipt of the notice. If an investor fails to reconfirm his or her investment commitment with those five business days, EquityDoor will direct the refund of investor funds.

EquityDoor can not guarantee the performance of any investment.  There is always the risk that returns may fail to meet projected amounts and even that investors may lose all of their invested capital.  Investors should review closely the information provided on each investment opportunity that is of interest, including the “risk factors” described in the investor package of legal documents.

EquityDoor is committed to breaking down the barriers and enabling as many people as possible to invest in equity market and the projects/ventures they believe in. As such, we keep our minimum investment requirement, $1,000, amongst the lowest in the industry.

Note: Minimum investment amounts may vary as legal limitations could affect the number of investors in any one opportunity and thus might also impact minimum investment amounts.

Anyone can invest in a Title III crowdfunding securities offering. However, due to the risks involved with securities-based crowdfunding, you are limited in how much you can invest during any 12-month period in these transactions. The limitation on how much you can invest depends on your net worth and annual income. Following are the inflation-adjusted investment limits. If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the greater of your annual income or net worth. If both your annual income and your net worth are equal to or more than $107,000, then during any 12- month period, you can invest up to 10% of annual income or net worth, whichever is greater, but not to exceed $107,000.

Investor return potential varies by project and are agreed upon between the project and investor as part of the investment process. Equity investments have the potential to provide quarterly distributions while debt and preferred equity investments have the potential to provide monthly payments. Distributions are generally transferred directly into the same linked bank account that was initially used by the investor when investing in the project.

Preferred equity investments have the potential to have “current” payments made on a monthly basis and the potential to have an “accrued” payout that is payable at the expiration of the investment period. Normal equity investments have the potential to have investors receive quarterly distributions, dependent on cash flow and at the full discretion of the sponsor. In addition to quarterly distributions, investors have the potential to participate in any net appreciation realized when the property is sold. An investor’s share of any of these distributions will be deposited directly into the linked bank account designated by such investor.

Payout schedules cannot be guaranteed, of course, nor can there be any guarantee as to return rates or the return of investor capital generally, regardless of the structure of any investment opportunity.

If target funding amount is not met, 100% of any funds collected for the project will be returned directly to investors. Given we do not collect funds until a project a project is fully funded, we typically know in advance whether the investment subscription is going to be accepted by the project owner and can avoid any unnecessary movement of funds.

Any forms of investment carries inherent risk. As such, EquityDoor cannot guarantee any of the investment projects listed on our platform. Actual return rates may not meet those that were projected and some or all of the invested capital could be lost during the project. Investors should review closely the “Risk Factors” described in the investor package for each specific investment opportunity.

Funds are held in an escrow account until closing.

There is always a risk that a particular project will require more money than projected. EquityDoor generally attempts to negotiate provisions in the sponsor’s operating agreement so that the EquityDoor investment vehicle will not be obliged to participate in any request for additional capital (a “capital call”). We also try to limit the amount of dilution, or interest rate payable, that may occur where some sponsor-level investors contribute additional funds and we do not. Investors should review the applicable investor package for more information as to the potential consequences of not participating in a sponsor’s capital call.

Investors in equity or preferred equity opportunities will generally receive quarterly (sometimes monthly) updates from the project owner as to the progress of the business plan and any developments related to the subject property. Updates are generally sent by email and are also posted directly to the online “dashboard” of participating investors.

Debt investments do not generally involve any periodic updates.

Investors will also receive timely tax documents for each calendar year in which there was a distribution or other taxable income from a real estate investment made through EquityDoor. However, if the project owner is delinquent in providing tax-related information, there can be no assurance that investors will not need to file an extension request with the IRS.

In real estate, EquityDoor provides loans secured by residential properties (1-4 units) and commercial properties like apartment buildings. Most of these loans are rehab or construction loans with maturities ranging from 3 to 18 months. We require that the Borrower have a minimum credit score of at least 600 and that the loan meet the following criteria:

(1) Loan to cost (LTC) is less than 80%; and

(2) The estimated loan to after repair value (once the property is rehabbed) is less than 65%

For second position or mezzanine loans, we may lend up to 90% LTC.

Investment offerings are illiquid and involve significant risks, including no guarantee of returns and possible loss of principal invested.

Cancellation Rights. You have the right to cancel your investment commitment in an offering at any time until 48 hours prior to the deadline identified in the issuer’s offering materials. After that, your investment will be final.

If the issuer does not complete an offering (e.g., the target was not reached or the issuer decided to terminate the offering), EquityDoor shall, within five business days, (1) give or send to each investor who had made an investment commitment a notification disclosing the cancellation of the offering, the reason for cancellation, and the refund amount that the investor should expect to receive; (2) direct the refund of investor funds; and (3) prevent investors from making investment commitments with respect to that offering on EquityDoor’s platform.

Investing in startups and other private companies is highly speculative and should only be done by investors who can bear the complete loss of their investment without any change in their lifestyle. Risks include, but are not limited to an issuer’s:

• Limited operating history
• Lack of liquidity or any market for the resale of your investment,
• Possibility of fraud or misrepresentation,
• arbitrary valuation of the company,
• Limited shareholder rights and the possibility of dilution (meaning the reduction in the ownership percentage of a company caused by the issuance of more shares),
• Inability to generate revenue or raise additional capital to fund operations,
• Inability to continue its relationship with EquityDoor or to publish annual reports where an investor obtains the most current financial information about an issuer, and
• Distributions, interest payments, and other returns are not guaranteed.

You will not be able to resell securities acquired through Crowdfunding for a period of one year, subject to certain limited exceptions, including sales back to the issuer, to accredited investors, to family members under certain circumstances (i.e. death or divorce). However, even after the restricted period, there is no guarantee that there will be a market for the securities.

EquityDoor does not provide any investment advice or recommendations. The posting of an offering on the portal is neither a recommendation, solicitation or endorsement of the offering by us. Any decision to invest shall be based solely upon your own evaluation and analysis of the offering and is made at your own risk. You are strongly advised to consult with your investment advisor and/or legal counsel before making any investment.

You are responsible for conducting legal, accounting and other due diligence review on the issuer’s and offerings posted on the Portal and to determine whether the investment is suitable for your investment needs.

Ongoing Issuer Relationships and Annual Reports. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

Investing in startups and other private companies is highly speculative and could result in the complete loss of the investment. In addition, you will not be able to resell securities acquired through Crowdfunding for a period of one year, subject to certain limited exceptions, including sales back to the issuer, to accredited investors, to family members under certain circumstances (i.e. death or divorce). However, even after the restricted period, there is no guarantee that there will be a market for the securities.

An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statements must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

The transaction between the issuer and the investor will be completed through the EquityDoor online platform, by registering an account, submitting an investment commitment, signing subscription documents, and providing information to fund your investment.
Any shares will be issued as securities and records will be centralized and recorded electronically in a system managed by the escrow agent.

EquityDoor simplifies the process of raising money for your project and saves you valuable time. Our platform allows you to list your investment opportunity, get approval and secure funding from crowd of many investors who are looking to invest.

Each opportunity is unique and the time it takes to complete funding will vary.

While we have streamlined the costly process typically associated with banks and traditional financing, there are still specific expenses related to establishing and managing the fund that invests in your project. These costs typically include legal, accounting and compliance expenses and EquityDoor requires reimbursement for these expenses.

Reimbursement expenses are not identical and will depend on the specifics of your investment opportunity. Please contact us here for more details.

We evaluate each potential project and meet with each potential issuer before listing a project to identify that the project fits certain criteria and to learn more about the sponsor’s experience and business history.

We perform background and credit checks on project sponsors and may also review sponsor’s pro forma financial projections, proposed investment structure and property-specific details related to age, quality and general market where the project is located.

Our intent is to provide investors with the best available information to make their personal investment decision. As such, the EquityDoor platform brings together the relevant investment details (typically provided by the project owner) to help investors research, compare and consider the many details behind various projects in a simple, single platform.

EquityDoor does not seek to provide a screening service or act as a legal, investment or tax advisor. Nor can we guarantee any investment. Listed projects generally involve securities that are not easily transferred and typically are to be held for extended periods of time and therefore carry significant risk. Final investment decisions lie with each investor. Investors should consult with their professional advisors with respect to any listed investment opportunity.

Listing your investment opportunity is fast and efficient. Simply create an account and submit an application here, and we will review it and respond within 24-48 hours. Once accepted, we will follow up to obtain additional information relative to your specific project to determine whether it is a good fit for EquityDoor members.

Reg CF: Regulation Crowdfunding or Reg CF is a means for startups to raise funding from the general public. Reg CF was created by Title III of the JOBS Act that allows companies to raise money by soliciting investments from groups of people.

Under the SEC’s new rules, companies can now raise up to $5 million under Reg CF over the course of 12 months. The new regulations allow non-accredited investors to contribute up to $2,200 or $107,000 per year depending on the individual’s net worth. The company must file detailed disclosures with the SEC and provide audited financial statements to potential investors.

Reg D 506C: Rule 506(c) of Regulation D is a type of exemption that allows issuers to raise capital and broadly solicit and generally advertise an offering, provided that:

1. All purchasers in the offering are accredited investors.
2. The issuer takes reasonable steps to verify purchasers’ accredited investor status and certain other conditions.

Reg A+: Regulation A is an exemption from registration for public offerings. Regulation A has 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 $75 million in a 12-month period. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier 1 or Tier 2.

These offerings are known as “Mini IPOs,” and they allow companies to raise capital from both accredited and non-accredited investors (subject to some limitations) without having to go through the full IPO process. This means that companies can avoid the cost and time associated with having to file with the SEC, as well as other regulatory requirements, in order to get their business off the ground.

We review each project internally and complete background and credit checks on you and your company. Upon favorable review, we will post your investment project on EquityDoor.

An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statements must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

An issuer that has offered and sold securities through the portal must file with the SEC and post on the issuer;s Web site an annual report along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects, and a description of the financial condition of the issuer, unless the issuer has financial statements that have been reviewed or audited by an independent certified public accountant, in which case, the audited or reviewed financial statements should be posted. This report must be filed no later than 120 days after the end of the issuer’s fiscal year. An issuer is not required to continue filing annual reports if:

(1) The issuer is required to file reports under section 13(a) or section 15(d) of the Exchange Act ( 15 U.S.C. 78m(a) or 78o(d));
(2) The issuer has filed, since its most recent sale of securities pursuant to this part, at least one annual report pursuant to this section and has fewer than 300 holders of record;
(3) The issuer has filed, since its most recent sale of securities pursuant to this part, the annual reports required pursuant to this section for at least the three most recent years and has total assets that do not exceed $10,000,000;
(4) The issuer or another party repurchases all of the securities issued in reliance on section 4(a)(6) of the Securities Act , including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) The issuer liquidates or dissolves its business in accordance with state law.

Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

Crowdfunding is a method of raising funds for a project, cause, or venture by connecting to a large number of individuals who share the same interest (the “Crowd”) and contribute (“Funding”) to the project’s success.

A crowdfunding campaign typically involves three parties: the project creator who launches the campaign, the backers who pledge money to fund it, and a platform that hosts the fundraising campaign. The platform can be either an equity-based site like EquityDoor, which lets people invest in projects they believe in, or a reward-based site that gives people perks for funding ideas.

Equity crowdfunding is the next evolution of financing an entrepreneurial venture. It’s a new way to finance your project without going through traditional financial institutions.

At EquityDoor, we help build equity to get your project started.

Regulation Crowdfunding or Reg CF enables eligible companies to offer and sell securities through crowdfunding. The rules:

• require all transactions under Regulation Crowdfunding to take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal
• permit a company to raise a maximum aggregate amount of $5 million through crowdfunding offerings in a 12-month period
• limit the amount individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period and
• require disclosure of information in filings with the Commission and to investors and the intermediary facilitating the offering

Securities purchased in a crowdfunding transaction generally cannot be resold for one year. Regulation Crowdfunding offerings are subject to “bad actor” disqualification provisions.

U.S. Securities-based Crowdfunding Under Title III of the JOBS Act Abstract: Title III of the JOBS Act created a new exemption from registration for Internet-based securities offerings of up to $5,000,000 over a 12-month period. The SEC adopted securities-based crowdfunding rules on October 30, 2015.

The JOBS Act is a legislation passed by the United States Congress in 2012. It stands for Jumpstart Our Business Startups and was designed to help businesses raise capital. The law loosened reporting, oversight, and advertising regulations for companies seeking investor capital. In addition, The JOBS Act also allowed non-accredited investors to invest in startups through crowdfunding and “mini-IPOs.”

A crowdfunding intermediary registered with the Securities and Exchange Commission (SEC) as a broker or as a funding portal and a member of a national securities association (FINRA).

Issuers on EquityDoor’s Regulation Crowdfunding platform will be offering debt or equity investments in entities that own commercial or residential real estate. A debt is a promise by a borrower to repay money to a party (the lender, creditor or investor) that has loaned it money, usually with interest. Debtholders have no ownership rights in the issuer. Debt is generally issued for a fixed period of time, at the end of which (the maturity) the issuer must repay the money borrowed. On the other hand, an equity interest in an issuer will represent an ownership interest in the entity and may be in the form of stock of a corporation or a membership interest in a limited liability company. There usually is no time limit of when an investor may receive its investment or any return on investment.

Both types of investments carry risks of investing. Investing in startups and other private companies is highly speculative and should only be done by investors who can bear the complete loss of their investment without any change in their lifestyle. Risks include, but are not limited to an issuer’s: (i) limited operating history, (ii) lack of liquidity or any market for the resale of your investment, (iii) possibility of fraud or misrepresentation, (iv) arbitrary valuation of the company, (v) limited shareholder rights and the possibility of dilution (meaning the reduction in the ownership percentage of a company caused by the issuance of more shares), (vi) inability to generate revenue or raise additional capital to fund operations, and (vii) inability to continue its relationship with EquityDoor or to publish annual reports where an investor obtains the most current financial information about an issuer. An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statement must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

Reg CF: Regulation Crowdfunding or Reg CF is a means for startups to raise funding from the general public. Reg CF was created by Title III of the JOBS Act that allows companies to raise money by soliciting investments from groups of people.

Under the SEC’s new rules, companies can now raise up to $5 million under Reg CF over the course of 12 months. The new regulations allow non-accredited investors to contribute up to $2,200 or $107,000 per year depending on the individual’s net worth. The company must file detailed disclosures with the SEC and provide audited financial statements to potential investors.

Reg D 506C: Rule 506(c) of Regulation D is a type of exemption that allows issuers to raise capital and broadly solicit and generally advertise an offering, provided that:

1. All purchasers in the offering are accredited investors.
2. The issuer takes reasonable steps to verify purchasers’ accredited investor status and certain other conditions.

Reg A+: Regulation A is an exemption from registration for public offerings. Regulation A has 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 $75 million in a 12-month period. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier 1 or Tier 2.

These offerings are known as “Mini IPOs,” and they allow companies to raise capital from both accredited and non-accredited investors (subject to some limitations) without having to go through the full IPO process. This means that companies can avoid the cost and time associated with having to file with the SEC, as well as other regulatory requirements, in order to get their business off the ground.