What is a Select Online Public Offering?
When a Small Online Public Offering raises more than $1,070,000 on StartEngine Capital LLC, it is possible to convert some of the additional capital into a Select Public Online Offering or known by the SEC as a 506(c) offering on StartEngine Crowdfunding, Inc.
This offer is only for accredited investors. These are investors who earn $250,000 or more per year, or have at least $1M in personal net assets outside of the value of their principal residence.
Instructions on how to create a Select Public Online Offering through StartEngine Crowdfunding, Inc:
- Prior to starting the Small Online Public Offering, StartEngine will specify in the Form C document that the company will have the flexibility to decide which investments to accept in the Regulation Crowdfunding offering.
- Email email@example.com to setup a call with a StartEngine service person to start the process.
- Sign the Select Public Online Offering Posting Agreement.
- Ask legal counsel to help draft a private placement memorandum (“PPM”) to provide investors.
- Pay either a $200+warrants per investor who funds the escrow fee or a fixed, one-time $20,000+warrants fee in advance to StartEngine Crowdfunding, Inc. for hosting this offering. This fee is non-refundable and paid regardless of how much capital is raised in this select offering.
- StartEngine Crowdfunding, Inc. will create a new campaign page with a new web address to display the Select Public Online Offering. This page will feature an "Invest Now" button.
- StartEngine Capital LLC. will, on behalf of the company, extract the accredited investors from the existing Small Online Public Offering, keeping the total as close as possible to $1,070,000.
- StartEngine Crowdfunding, Inc. will direct the StartEngine Capital LLC to instruct the qualified third party to release investor funds from the offering under Regulation Crowdfunding to the company.
- FundAmerica will send each investor the link to the Verify Investor website. The investor needs to provide one of the following: a letter from their Attorney or CPA confirming they meet the accredited investor financial requirements, their latest tax returns, or a statement from any of their bank accounts with more than $1M in liquid assets.
- StartEngine Crowdfunding, Inc. will send an email to the accredited investors with a link to the new campaign page. The investor clicks on the "Invest Now" button to sign the subscription agreement. The selected accredited investors are not required to invest in this separate offering.
- Once the investors have either signed or withdrawn from the offer, the offering is closed and escrow is released to your company.
- Pay the transaction fees to FundAmerica. FundAmerica is the transaction and escrow provider.