The Crowdsphere Crowdfunding Process
One of the most common questions entrepreneurs have is ‘how does it work?’. Well, here are the main stages of a typical Crowdsphere pitch process (click them for more information):
1. Pitch application
2. Pitch creation
3. Pitch activation
4. Pitch funded
5. Seven day email
6. AML checks completed
7. Resolution and board meeting
8. Funds captured and transferred to you
9. Investor schedule draft
10. Share certificates generated and issued
You complete the Pitch Application process where you provide information including a summary of the investment opportunity your information memorandum three year financial forecasts, business plan, constitution and shareholders agreement if you wish to have one.
We’ll assess whether your business is right for Crowdsphere (and vice versa) and investment ready considering our investors’ requirements and historical successes. We will also undertake AML/CFT checks on the directors and senior managers
If you’re ready, you can move to the next step. If not, we’ll recommend what steps you need to take to enhance your application and introduce you to some helpful partners.
With your application approved you can start to complete your pitch page, including adding your video and getting your information memorandum and financial documents approved.
It’s at this point you should start telling everyone you know that you’re coming on Crowdsphere.
To be successful you need to have a marketing plan in place before you go live. Our Pitch Marketing Checklist has plenty of tips.
When your pitch has been created and we’ve fully vetted everything we’ll activate it. Investors can then say how much they’re willing to invest and over a period of time (usually 60 days) investments accumulate until the target amount is reached.
If you can create early momentum and interest your pitch has a much greater chance of success so lining up investors before you go live is imperative.
Once you’ve hit your target, or indeed your overfunding target, we’ll close your pitch and mark it as funded.
Investors are emailed to confirm their investment and review the Constitution and Shareholders Agreement and have seven working days to review everything. Once the seven working days have passed the investment will become a binding order for investment in the company.
We conduct in-depth Anti-Money Laundering and may do background checks on investors that commit to an investment and entrepreneur to ensure all parties are protected.
If required, the ‘Waiver of Pre-emption Rights’ and Board Resolution documents are signed by relevant investors and board of directors. You may need to ensure that 75% of the shareholders sign the special shareholders resolution.
We instigate the capture of the funds from your investors via a payment provider. After removing all fees (theirs and ours) the funds are passed to you! This part of the process usually takes around seven days.
It is important that a share calculation is carried out at this stage so we will confirm the number of shares to be issued to your new shareholders (taking current shareholders into account) and provide you with the investor schedule.
Your solicitor or company secretary needs to update your share register and the Companies Office. All you need to do now is run an awesome business!
Feeling inspired to start your pitch?