Crowdfunding - funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.
Crowdfunding Offering - a crowdfunding campaign with details regarding the sale of securities and additional information needed by the investor to make a decision.
Due Diligence - The review of a potential investment that serves to confirm all material facts by a prospective buyer.
Funding Portal - is an online website-intermediary that is registered with the SEC and FINRA as a funding portal and facilitates the sale of securities under the JOBS Act Title III Regulation Crowdfunding.
Investor Limitations - under the Crowdfunding rules, investors, or purchasers, are limited to the amount they are allowed to invest in the 12-month period.
Issuer - the company or entity that issues the security is known as the issuer.
JOBS Act Title III - also referred to as Regulation Crowdfunding - permits individuals to invest in securities-based crowdfunding transactions. The rules limit the amount of money an individual can invest and the amount of money an issuer can raise using the crowdfunding exemption. The rules also have disclosure requirements on issuers for certain information about their business and securities offering, and create a regulatory framework for the broker-dealers and funding portals that facilitate the crowdfunding transactions.
Material Change - any change in the offering, including updated terms that would have an adverse effect on the company’s operations.
Purchaser - the individual or an entity that is purchasing the security sold by the issuer is called the purchaser.
Revenue Sharing - distributing company sales revenue among investors until the predetermined amount is reached or until maturity date.
SEC - the U.S. Securities and Exchange Commission (SEC) is an agency of the United States federal government. It holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States.
Security - is a financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value. Securities are typically divided into debts and equities.
Target Offering Amount - the total fundraising amount that the issuer is looking to raise under the offering.
Traction - data that reflects progress of the company, such as profitability, revenues, active users, registered users, engagement, partnerships/clients, traffic.