What if you could invest like Mr. Wonderful? The face of ABC’s Shark Tank?
Would you invest in startups like Airbnb or Uber before their IPO’s and went public?
Take a second and imagine if you did.
You would be proud of yourself for making such a savvy investment choice and be thrilled your portfolio is seeing such a large return on investment.
Prior to 2013, everyday investors like you and I couldn’t invest in pre-IPO companies like Uber and Airbnb. Meaning you couldn’t invest in these companies until they went live on the stock market. Only angel investors had access to these awesome investment opportunities.
But not anymore.
With the passage of the Title III of the JOBS Act, equity crowdfunding became a viable option for companies like RYSE, where anyone can invest like a shark through equity crowdfunding campaigns—like a Kickstarter campaign, but instead of supporting brands in exchange for products, you can invest in brands in exchange for equity, or shares.
In the past, start-ups had to raise capital through venture capital firms and other corporate avenues. This created a high barrier to entry, and many promising start-ups were not able to raise essential seed capital.
Equity crowdfunding allows RYSE and other companies to raise funds from everyone—improving the democratization of investment opportunity, eliminating investment complexity, increasing access to capital, all while preserving and enhancing the investor community.
We are raising money under the Reg A+ provision of the JOBS Act to fund the expansion of our company. By breaking down equity crowdfunding, we hope to inspire you to build your portfolio with innovative businesses with a bright future, such as RYSE.
Equity Crowdfunding 101
Equity crowdfunding is a relatively new phenomenon, having only been around in American since 2012. In 2012, then-President Barack Obama signed the JOBS Act into law. One of the many provisions in this landmark legislation allowed private companies to raise capital from private investors. Initially, this legislation only allowed private companies to raise capital from accredited investors, a select group mostly made up of the wealthiest 2% of Americans. This type of raise was called Reg D raise.
In 2015, Title IV of the JOBS Act (also known as Regulation A+ or Reg A+ for short) went into effect. This expanded the group of potential investors from accredited investors to all investors. An equity crowdfunding campaign under Reg A+ is often called a “mini-IPO.” Though Reg A raises allowed businesses to expand their investor pool, the SEC clearance, paperwork, filing, and fees to be qualified to run a Reg A raise were steep and created a barrier to entry for many startups. Shortly after, Reg CF raises went into effect, which still allowed startups to raise money for accredited and non-accredited investors, however, required a much lighter pre-clearance from the SEC.
Here’s a quick breakdown of the three types of equity crowdfunding raises:
- Reg CF
- Cap: $5M starting 3/15 2021 (it’s currently $1.07M)
- Non-Accredited and Accredited Investors
- MUST be done through a funding platform
- SEC filing required, light pre-clearance
- Reg A+
- AKA: The Mini-IPO
- Cap: $75M starting 3/15 2021 (it’s currently $50M)
- Non-Accredited and Accredited Investors
- Significant SEC filing and pre-clearance
- Reg D
- No cap on what a startup can raise
- Investors must be Accredited
- Does not require a broker-dealer or platform
- The only kind of crowdfunding available before the JOBS Act in 2012.
RYSE is currently live with a Reg A+ raise, so let’s go into a little more detail on this specific type of crowdfunding raise.
More on The Reg A+
As previously mentioned, Reg A+ of the JOBS Act allows everyone to invest in a private company in return for equity in the company. A company is allowed to raise up to $50 million under Reg A+. An equity crowdfunding campaign under Reg A+ is similar to a company going public through an IPO, which is why the term “mini-IPO” is often used. It is important to note that equity crowdfunding campaigns under Reg A+ must be qualified by the Securities & Exchange Commission (SEC). Though Reg A+ equity crowdfunding campaigns like ours must still be SEC-qualified, we do not have to pay the high fees or follow the strict disclosure requirements that companies must follow if they want to offer a traditional IPO.
RYSE’s Reg A+ Goals
We have several ambitious goals in mind that we can reach with the support of a successful equity crowdfunding campaign. We plan to expand our product line in the near future, releasing several new products in the smart home space within the next few years. One of the products we’re currently developing will be designed to work with drapes, which are often found in commercial buildings like hotels, and making a comeback in multi-family (e.g. condos/apartments). This product will be part of our planned push into commercial markets, an expansion that will be funded by our equity crowdfunding campaign. We are also planning to expand our retail footprint and distribution into the dealer channels. We have already sold our product in retail stores in Los Angeles and New York, and plan to expand to other cities and countries in the near future.
Here’s our product roadmap:
Why RYSE’s Equity Crowdfunding Campaign is a Smart Investment
Equity crowdfunding offers you the opportunity to invest in a company that is in an early growth stage. This opportunity was previously hard to come by if you did not have a personal connection with the company. By investing in RYSE at a relatively early stage, you will be able to support our exciting technology and benefit from the exponential growth that we foresee in our near future.
At a glance here are some of the top reasons to consider investing:
For more detailed information, download RYSE’s pitch deck.
Related: The Market Potential of Smart Shades Part 1 & The Market Potential of Smart Shades Part 2
Don’t Miss The Opportunity to Invest in RYSE Inc.
If you want to invest in a company with exciting growth and a bright future, join our equity crowdfunding campaign. Your investment will garner you a piece of our company so that you can profit from our growth in the future. The support from our investors will allow us to expand into new markets and develop new technology. Our equity crowdfunding campaign has been SEC-qualified and our founder and advisors have a long track record of success, so you can invest with confidence. Download RYSE’s pitch deck and invest in RYSE today.