Welcome to our “Gauge Investor Interest” information section, officially known in the Jobs Act as Testing-the-Waters. This process allows Issuers to test various assumptions and gauge investor interest before they have committed all the time and money required to launch a full-blown regulation crowdfunding campaign. You can launch your pitch, spread the word, and have supporters reserve spots in your offering. It’s free to start raising capital. Pay nothing to us until you successfully raise some money.
Below Is How This Process Works On Rise Up Crowdfunding.
First, you must be an Issuer. Issuers are any entity that seeks to raise money through the issuance of stock or other securities to raise money from investors. An issuer must be “organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
The Issuer ( Entrepreneur ) starts by registering here:
When complete, you will land on our Welcome Page and see a box that says
2. Then the Issuer fills out our Application Form
If accepted, we will provide you with our contract. Once you have signed it, you will see the Gauge Investor Interest- box the next time you enter your Welcome page.
3. Once you click on it, you will be able to start the process of creating your Gauge Investor Interest presentation.
The presentation page will consist of your Pitch Deck and an optional Link to your Video if you have one.
Marketing to Your Community Before Your Launch Your Regulation Crowdfunding Offering
In nearly every Regulation Crowdfunding offering, a large amount of your initial capital raised will come from people who know you, your team, and your company. By far, the audience most likely to invest are people who are already a part of your marketing and messaging ecosystem. This generally means your customer base, your e-mail lists, your social media followers, your friends and family and teammates, and even existing investors who may be interested in increasing their investment.
Getting these people lined up in advance and into the Rise Up Crowdfunding system before your launch can lead to a more successful first few days of your offering once your Form C is filed.
What is a “Gauge Investor Interest” or Testing The Waters campaign on Rise Up Crowdfunding?
A “Gauge Investor Interest” or Testing The Waters campaign allows a company that is considering raising capital to see how much interest exists in their Regulation Crowdfunding offering before they officially file with the SEC. For an issuer, the benefits include gauging the interest in your upcoming offering and getting your initial investor base of close contacts (friends, family, co-workers, social media followers) engaged and into the Rise Up Crowdfunding system for easier investment processing later when you go live.
What are the requirements for a company to “test the waters” using a Gauge Investor Interest campaign on Rise Up Crowdfunding?
Only companies who have filled out our initial information form, been accepted by our review process, and signed a contract to list their offering on Rise Up Crowdfunding are eligible to run a Gauge Investor Interest campaign.
Are there any legal requirements for a company testing the waters using a Gauge Investor Interest campaign on Rise Up Crowdfunding?
Yes. It is very important to ensure you follow certain rules to avoid any non-compliance issues later for your company.
“All marketing and communications you make (e-mails, website pages, social media posts, etc.) must include a disclaimer containing the following.”
NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, IT WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED, AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT IS FILED AND ONLY THROUGH AN INTERMEDIARY’S PLATFORM. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND. “RESERVING” SHARES IS SIMPLY AN INDICATION OF INTEREST.
You must also be sure your marketing and communications are fair, balanced, and not misleading. Avoid comparisons to public companies, statements that suggest future positive returns or growth statements promising any return on investment, suggestions that this is a low risk, or any promises to provide liquidity. Be careful about statements that cannot be verified with a citation or are difficult to prove. Any statements you make about your company, your products or services, or your management team must be supported by proof.
Any non-compliant marketing or communication made before you file your Form C could be construed as an unregistered offer of securities that may prevent you from being able to use Regulation CF or other securities laws.
What’s a reservation on my “Gauge Investor Interest” page?
A reservation is a potential investor’s non-binding commitment to investing. It becomes official after you file your Form C and the investor converts their reservation into an investment.
How do reservations become investments?
Once your Form C is filed, Rise Up Crowdfunding will email everyone who has made a reservation directing them to your Offering Page so they can formally make their investment.