Glossary
Review our glossary to find explanations on
different terms used throughout our platform
and the investment community.
Private Placements
Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption from registration is available. Many securities offerings exempt from registration with the SEC are conducted as a private placement or an unregistered offering.
Generally speaking, private placements are not subject to some of the laws and regulations that are designed to protect...
Risk Tolerance
Risk tolerance is your ability and willingness to lose some or all of your original investment in exchange for greater potential returns. An aggressive investor, or one with a high-risk tolerance, is more likely to risk losing money in order to get better results. A conservative investor, or one with a low-risk tolerance, tends to favor investments that will preserve his or her original investment. All investments on this site carry a high...
Rule 506(c)
Rule 506(c) of Regulation D is an exemption from the securities laws governing the issuance of securities. Offerings relying on this exemption are a type of Private Placement.Recognizing the need for small and early-stage businesses to be able to access capital. In 2013, this new rule and associated SEC regulations was adopted and implemented to allow issuers to broadly solicit and generally advertise their offering. However two investor...
Investment Risk
All investments involve some degree of risk and each individual investor must determine the level of risk with which he/she is comfortable. Generally, the greater the risk of the investment, the greater the potential for profit as well as loss. All investments on this site carry a high degree of risk. Investors must understand there is a risk of losing an entire investment. If you are uncertain or uncomfortable with this level of risk,
Accredited Investor
Under the federal securities laws, a company or investment fund may not offer or sell securities unless the transaction has been registered with the SEC or an exemption from registration is available. Certain securities offerings that are exempt from registration may only be purchased by persons who are accredited investors. One principal purpose of the accredited investor concept is to identify persons who can bear the economic risk of...
Net Worth
To qualify as an accredited investor under the net worth test, you must have a net worth that exceeds $1 million, either alone or with a spouse. If calculating joint net worth with a spouse, it is not necessary that property be held jointly. Calculating net worth involves adding up all your assets and subtracting all your liabilities. The resulting sum is your net worth.
The value of your primary residence is not included...
Liquidity
Liquidity refers to how easily a security (common or preferred stock, LLC membership interest, LP interest, notes) can be converted into cash. Regulation D securities are highly illiquid, and sales are often restricted for a year or longer. As an investor, you should understand that your funds will be difficult to access for a long period of time, or a liquidity event may never occur, resulting in the loss of your entire investment.These...
Investment Time Horizon
An investor with a longer time horizon may feel more comfortable taking on a riskier, or more volatile, investment because he or she can endure selling restrictions on private placements, including the absence of liquidity events over the life of the investment, slow economic cycles, the inevitable ups and downs of investing and possible loss of the entire investment. By contrast, an investor saving up for a teenager's college education would...
Reg A
Traditionally, growth stage companies relied on Broker Dealers to connect the issuer with Institutions and introduce investors to raise capital through a securities offering. The JOBS Act and amendments to Regulation A modernized the investment process, and we aim to transform the investment community.
In a Regulation A Offering, investors may participate regardless of their Accredited status and should be prepared to hold...
Investment Suitability
In order to process investments, we collect an investor’s suitability information such as: