Collinson Crowdfunding makes it easier for “wholesale” investors to invest in an offer. Investors may be “wholesale” because of their relationship with the company making the offer (e.g. relatives) or because of characteristics of the investors (e.g. an experienced investor, a large investment, investor has high net worth).
The key benefit for your company of using Collinson Crowdfunding’s licensed equity crowdfunding platform is that the company can make a public offer without the prescriptive disclosure and other regulatory obligations that usually apply to a public offer. However, if the offer is made under our license you can only raise up to $2m per company each 12 months and there are some restrictions on share classes (e.g. convertible shares, some preference shares) and use of funds (e.g. funds raised cannot usually be passed on to a third party). We provide support for offers to some types of wholesale investors, who are not subject to those limitations. Some extra process and forms are required to allow wholesale investors to invest – we help you with that. Please contact us for more information.