Before an Investor can see your Capital Raise Deal Page, the Capital Raise must be in one of these two statuses:
Status: Upcoming - allowing Soft Commitments only
Status: Active - allowing full Commitments including signing legal documents and funding
TIP: Use this article to learn more about Capital Raise Statuses: Capital Raise Statuses Explained (VIDEO)
This article describes the basic steps investor will take to make:
Making a Soft Commitment (Capital Raise Status: Upcoming)
Soft Commitments are made for a Capital Raise when the Investor submits the Soft Commitment form. The system will add the Soft Commitment to the Opportunities tab of the Fundraising section and associate it to the Capital Raise.
SOFT COMMITMENTS are used to capture the Investor's expected investment. These are non-binding and are used by the Sponsor to gain an understanding of an Investor's Interest. Once an Investor has a Soft Commitment in a Capital Raise, when the Capital Raise Status is changed to Active, you will have the option to send a notification to all investors with a Soft Commitment in the Capital Raise to log into their portal and click on Invest Now to complete their full Commitment.
Investors will follow these basic steps when making a Soft Commitment:
STEP 1: Click on the Offering (Deal Page) link the Sponsor has provided.
NOTE: Investors will experience one of the following workflows when navigating to your Deal Room page.
Workflow 1:
If the Access settings for the Capital Raise have the 'Allow unregistered investors to view the deal room' setting enabled:
Then when the investor clicks the 'Soft Commit' button, the Soft Commitment Form will display for the Investor to fill out and Submit.
Workflow 2:
If the Access settings for the Capital Raise does NOT have the 'Allow unregistered investors to view the deal room' setting enabled:
The Investor must log in to the Investor Portal, click on the 'Offerings' tab, click the 'Soft Commit' button, and proceed through the steps below.
STEP 2: After clicking the Soft Commit button, the investor will enter their Soft Commitment:
STEP 3: After clicking the 'ENTER SOFT COMMITMENT' button, this message will display:
STEP 4: When the Investor clicks the 'DONE' button, they will be taken back to the Dashboard of their Portal.
Making a Full Commitment (Capital Raise Status: Active)
When all the legal documents and funding instructions have been added to the Capital Raise and you are ready to have the investors make their FULL Commitment, you will change the status of your Capital Raise to Active. This will change the button on the Offering page (Deal Room) from 'SOFT COMMIT' to 'INVEST NOW'.
Investors will follow these basic steps when making a FULL Commitment:
STEP 1: Log into the Investor Portal:
NOTE: Even if the Access for the Capital Raise has this option checked: Allow unregistered investors to view the deal room, the investor must log in to their portal to complete their FULL commitment.
STEP 2: Click on the 'Offerings' tab.
STEP 3: Click on the 'INVEST NOW' button for the Capital Raise Offering. This will launch the step-by-step workflow that will guide the investor through the Commitment Flow:
STEP 4: Enter the 'Commitment Amount' and click 'NEXT':
STEP 5: Select your investing Account (if it already exists) or create a new investing Account. Click 'NEXT':
If the Investor selected 'Create a new account', this New account form displays. The investor must select a legal entity type that they will be using to invest in the deal:
The Investor will be required to fill out the details for the Investing Account.
NOTE: The 'DONE' button will only display after all the information is entered in the required fields:
STEP 6: After selecting the Investing Account or adding a new Investing Account, the investor is taken to the 'Investment Disclaimer' page:
The investor will click: I CERTIFY THAT I HAVE READ AND UNDERSTOOD THE INVESTMENT DISCLAIMER
IMPORTANT: If the investor exits the Commitment Flow before completing the 'Investment Disclaimer' step, their progress will not be saved and they will need to re-enter their commitment.
If the investor completes the 'Investment Disclaimer' step, and then exits the Commitment Flow, upon returning to the portal, they will see a 'Unfinished Investment' card prompting them to continue their investment. See the example below:
NOTE: As soon as an investor submits a Commitment, the Sponsor can view the Opportunity card under the 'Committed' column on the Fundraising pipeline:
As they progress through the Commitment Flow, their Opportunity card will automatically move from column to column.
STEP 7: If the Accreditation feature is being utilized for the Capital Raise:
The investor will be asked if they are Accredited or Non-Accredited:
If they respond, "Yes":
They are asked to upload their current accreditation certification letter, or...
They can select to use the integrated accreditation verification service.
If No, - and Accreditation is required:
They are not allowed to complete the Commitment.
IMPORTANT:
When an investor is providing documents for the accreditation process, please note the following:
There is a 25MB size limit per file. Typically, investors trim much larger files so they’re only sharing the first few pages. For example, an Experian credit report has a summary, usually 3 pages in, that highlights all of their debts. That is all Accredd needs to see.
Similarly, for real estate documents, Accredd needs to see the address and that it’s owned by the investor so they can look up its fair market value.
This article explains the Accreditation feature for a Capital Raise: Accreditation: Adding to a Capital Raise
STEP 8: The 'Document Sequence' stage will display the E-Signature documents you've created and guide the Investor through the required fields:
STEP 9: After the Investor completes their documents, they are taken to the 'Funding' stage:
Depending on the funding options available for this Capital Raise, the investor can:
Add their Banking Information through Plaid by clicking on Fund Now for InvestNext to receive the funds.
Click on the Wire Instructions to download and wire their funds directly from their bank to your bank.
Click on Check Instructions to mail a check to you.
IMPORTANT: After the Investor has completed their full Commitment, the Sponsor is notified to countersign the legal documents.
For InvestNext Portal 1.0:
Investors will follow the basic steps below when making a Commitment in InvestNext Portal 1.0:
STEP 1: Log into the portal
STEP 2: Click on the Offerings tab.
STEP 3: Click on the Learn More button for the Capital Raise offering.
STEP 4: Click the Reserve Now button.
This will launch the step by step workflow that will step the investor through the Investment process.
STEP 4: Enter the Commitment Amount:
IMPORTANT: If the investor steps away before completing the 'Investment Disclaimer' step, their progress will not be saved and they will need to re-enter their commitment.
If the investor completes the 'Investment Disclaimer' step, and then walks away, upon returning to the portal, they will see a blue banner prompting them to continue their investment. See the example below:
Alternatively, if the investor navigates to the 'Offerings' section, they will see their unfinished commitment, as shown in the following example:
NOTE: As soon as an investor submits a Commitment, the Sponsor can view the Commitment under the 'Committed' column on the Fundraising pipeline, as shown in the example below:
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