What happens after my campaign closes?

Once a company has disbursed or closed their funding campaign, the next step is to send an update to the shareholders announcing the company was successfully funded. At the end of the offering, StartEngine will file the Form C-U with SEC within 5 days.

Send an update through StartEngine to announce the successful funding. This is an example:

We are happy to announce that <company name> has successfully raised <amount>. We want to thank everyone who has invested. Please be patient because it can take up to two weeks to clear all of the investments. You will receive an email directly from StartEngine containing a copy of the fully executed Subscription Agreement. This is your proof you own shares in <company name>.

Please note: Your shares are cannot be sold or traded for one year from the date of the Subscription Agreement.

If you have any questions or have not received the email after four weeks, send an email to contact@startengine.com.

 

Example of the email StartEngine sends to investors

This email will be sent to your investors every time you make a disbursement or successfully close the offering. This email contains an attachment which is the Subscription Agreement signed by the investor and the company.

Hi *|USER_FIRST_NAME|*,

Congratulations on your investment in *|STARTUP_NAME|*! Your investment is complete and we have attached your signed subscription agreement as proof of purchase.

Company: *|STARTUP_NAME|*

Securities Type: *|SECURITIES_TYPE|*

Your Investment: *|INVESTMENT_AMOUNT|*

Investor Information:

*|INVESTOR_NAME|*

*|INVESTOR_ADDRESS|*

*|INVESTOR_CITY|*, *|INVESTOR_REGION|* *|INVESTOR_POSTAL_CODE|*

Phone: *|INVESTOR_PHONE|*

Date: *|DATE_OF_DISBURSEMENT|*

If you have any questions or concerns, please do not hesitate to reach out to a StartEngine team member at contact@startengine.com.

Congratulations again!

The StartEngine Team

 

Oversubscription (special case)

In the case that the total investment in escrow exceeds the maximum amount, then disbursing or closing the campaign can take an extra few weeks. This is because the investments placed in escrow in excess of the maximum amount need to be refunded. This process takes extra time. A partial disbursement is not permitted. Therefore, the company must first wait until the closing deadline has been reached and then depending on when someone committed the investment, StartEngine and the issuer will determine who needs to be refunded.

It is important to keep communicating with the prospective investors. Use the update feature to send a message to explain the oversubscription and the expected delay.

Example:

We are happy to announce that <company name> has successfully raised <amount>. We were oversubscribed over the maximum limit of <amount>. We want to thank everyone who has invested. Please be patient because it can take up 3 weeks to clear all of the investments and refund those who were in excess of the limit. You will receive an email directly from StartEngine containing a copy of the fully executed Subscription Agreement. This is your proof you own shares in <company name>.

Please note: Your shares are cannot be sold or traded for one year from the date of the Subscription Agreement.

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