Regulation Crowdfunding Education Center
Companies fundraising under Title III on the MicroVentures platform are required to provide the following information to potential investors:
- General information about the company and a description of the business
- The names of the company’s officers and directors
- The “use of proceeds” – how the company plans to use the money raised from the offering
- The target offering amount
- The deadline for the offering
- Risks that are specific to the company and its business
- Financial information
The type and depth of the financial information the company is required to provide varies depending on the amount of the target offering and whether or not the company has raised money under Title III before:
- Raising $107,000 or less: Companies must provide investors with financial statements and certain specific line items from income tax returns, both of which must be certified by the principal executive officer of the company.
- Raising $107,000.01 to $535,000: Companies must have their financial statements reviewed by an independent public accountant. The accountant’s review report must be certified by the principal executive officer of the company and provided to investors.
- Raising $535,000.01 to $1.07 million: Companies that are raising under Title III for the first time must have their financial statements reviewed by an independent public accountant, and any resulting review report must be provided to investors. Companies raising under Title III for a second or subsequent time must have their financial statements audited by an independent public accountant, and the accountant’s audit report must be provided to investors. An audit provides a higher level of financial scrutiny than a review.
If you would like more information about a company, each offering on the portal has a discussion forum where you should ask any questions you have and review the questions other investors have asked.