Big Companies Start Small
Ready to raise funds?
Why We’re Different
Regulation Crowdfunding Experts:
Title3Funds specializes in Regulation Crowdfunding (Reg CF). Under Reg CF, you can raise a maximum of $5M* from both accredited and non-accredited investors annually.
Startup Ecosystem:
Our Title3Funds advisers are committed to your success and help facilitate connections with experts who get the job done.
Selection Process:
Regulation Crowdfunding (Reg CF)
- Our full–service plan to raise up to $5M* from a crowd of investors.
- We assist and advise on every aspect of your capital raise – from storytelling and video production, digital marketing to escrow services, SEC filings and legal counsel.
- Our fees are based on the total amount of capital you raise, and only if you successfully meet your fundraising goal.
Title3Funds: Your Partner in Funding
Onboarding
Account Manager
Campaign Strategist
SEC Filings
Funding
Rolling Close Withdrawals
After reaching your minimum funding goal, you can withdraw funds to utilize newly raised capital while continuing to raise up to $5M*.
Payment Processing
Future Raises
Dashboard
Investment History
Investor Information
Campaign Visibility
Your Path To Funding
Learn more about raising capital
FAQ Categories
FAQ Categories
Fundraising 101
Crowdfunding is a financing method in which money is raised through soliciting small individual investments or contributions from a large number of people. Under rules adopted by the SEC in 2016, businesses may raise capital with Regulation Crowdfunding which allows companies to offer and sell securities to the investing public. Learn more here.
Through the process of crowdfunding, you will gain a passionate squad of evangelists who are rooting for your success. This group of devotees could provide you with a steady stream of feedback, a ready-made focus group, an expanded network, free PR, and deeper connections to the people who matter most. By turning your customers into owners, you are opening the door for assistance and maximizing your chances of success. Someone with a vested stake in your company is a much more valuable asset than a standard customer.
You can raise anywhere between $100,000 and $5,000,000.
We work with for-profit U.S. Corporations or LLCs across most industries.
No. This is not an advertising platform. It is legally and ethically required that we sort companies based on objective measures only.
Why Title3Funds?
We set out to create a fair and equitable marketplace where startups and investors can come together for a common cause, leveling the playing field for both parties.
Title3Funds helps businesses receive funding so they can fulfill their company vision. We manage the logistics of fundraising, so you can focus on what you do best — growing your business.
Title3Funds has established itself as the only investment crowdfunding portal specializing exclusively in Title III of the JOBS Act — Regulation Crowdfunding (Reg CF). We work closely with entrepreneurs during every step of the process and have assembled a best-of-breed ecosystem of successful crowdfunding partners and experts.
Selection process: We want our investors to feel confident with their investment options on Title3Funds, so we put substantial effort into vetting companies who apply with us.
Accountability: We are committed to improving the process. Collectively, our team has reviewed more than $500 million in deal flow across thousands of startups. We use the latest technology to improve efficiency and accountability in the crowdfunding space.
Startup Services: Each startup will work closely with the Title3Funds team who will connect you with industry-appropriate attorneys, accountants, digital marketing services, and more.
There is no listing fee. We charge a Success Fee of 7% cash plus 2% securities on the amount raised. Our Success Fee is subject to the successful completion of the closing round in which the issuing business meets its minimum funding goal.
Getting Started
You can use Title3Funds to raise $100,000 or more. We fund companies at all stages but the more established you are, the more likely you are to receive funding. It helps to have a business plan, a prototype, traction, some paying customers, social media proof, lead investors, and a marketing budget.
There are some upfront legal fees, escrow fees, and variable marketing costs. We’ve negotiated deals with the entire ecosystem of successful crowdfunding partners on your behalf and will introduce you at the appropriate time.
Submit an application for review right here.
Once you submit your application, our team will review it and contact you if we think there may be a good fit for our platform. Once approved we will work with you every step of the way to success.
We are highly selective about choosing businesses. For us, it’s about quality over quantity. Our evaluation process is extensive. We ultimately want to showcase businesses that have a good story to tell, a unique idea, or a new spin. We will only consider companies we believe will be able to effectively manage the newly acquired funds. We prefer to work with founders who have invested their own capital in the business.
The first step is self-education. We suggest you start by reading through all of our Frequently Asked Questions and review our Glossary of Terms. Once you are familiar with the logistics, dig deeper and learn more about both crowdfunding and investing. We also recommend reading through the wealth of information offered on the following websites:
- FINRA (Financial Industry Regulatory Authority)
- SIPC (Securities Investor Protection Corporation)
- SEC (US Securities and Exchange Commission)
Learn more about crowdfunding: Click Here.
Read the SEC Investor Bulletin: SEC Investor Bulletin: Crowdfunding (February 16, 2016)
Campaign Logistics
We support raising funds with convertible notes or equity financing. We do not permit SAFE, KISS, or other esoteric investment vehicles on our platform.
For a definition of Convertible Notes and Equity Financing visit our Glossary of Terms.
If you have already raised capital from at least one professional investor, they can help set the terms. There are valuation services available for hire, and convertible notes do not require that you set your valuation at this time.
The minimum you can raise with Title3Funds.com is $100,000.
The SEC currently dictates that an issuing company can raise a maximum of $5,000,000 per year via the Regulation Crowdfunding (Reg CF) exemption.
It generally takes 6 weeks from the time of your application submission to final approval with an actual funding date. The amount of time can be accelerated and is dependent on how fast you work.
According to SEC rules, an investor is required to hold shares for a minimum of one year.
Yes, for Regulation Crowdfunding, you are only allowed to promote after your SEC Form C is filed. Advertisements must be factual, avoiding qualifiers like ‘the best’ and ‘the greatest’. By law, all advertising must link to your campaign on Title3Funds.com. There are no restrictions on the type of advertising vehicle.
Yes, for Regulation Crowdfunding, you are allowed to tell the public that you are fundraising, but you may only talk about the terms of your fundraise on Title3Funds.com. In other words, if you meet someone who may be a potential investor, talk to them, answer their questions about your business but point them to your offering page on Title3Funds.com to review terms and make an investment.
Building Your Campaign
We’ll help you with all this but basically you have to be able to tell a compelling story. Talk about your motivations for starting the business, your detailed qualifications, your vision, team, goals, how far you have come, and how far you have left to go. Be specific about your current goals and why you need the money to take things to the next level.
It’s best if you can support everything with numbers; statistics and dollar amounts help tell your story and build support around your business.
You are required to file SEC Form C, and after that Title3Funds requires anti-fraud and Bad Actor checks.
Be truthful. You are legally liable for every piece of information you include on your offering page. Avoid future promises and forward-looking numbers, eliminate exaggerations, and be sure you haven’t omitted anything vital that investors should know about the business or your team.
An investor will review your offering on Title3Funds and invest if interested. Investors need to start an account, enter bank account information, and digitally sign investment documents. Investment dollars are held in an escrow account and will be transferred to you after the round closes, provided your minimum fundraising target has been met.
According to SEC rules, the amount issuers can raise with Reviewed Financials increased from $1.07M to $1,235,000. You can raise a maximum of $5,000,000 in a 12-month period with a Financial Audit.
After Your Campaign
You must wait until your minimum funding target has been met, and at least 21 days have passed, before initiating the close of your campaign.
If a material change in your business has occurred during your fundraising, you must disclose it to your investors before you close the round. All investors must then reconfirm their investment within 5 days of receipt of the notice.
A material change is anything a reasonable person would think should be disclosed to investors because they might change their minds, such as your co-founder quitting, a deal falling through, or an unexpected drop in sales.
If your campaign fails, investors get a refund. You can run a new campaign 60-days after the original campaign closes. You can use this time to gain more interest, improve your numbers, and do anything that might boost your investments for the new campaign.
Yes, under certain circumstances, this is possible. However, extending your deadline is a material change that requires all of your investors to reconfirm their investment. But it is still a better option than having a failed campaign.
We do not hand out your contact information, but there is an online Q&A tool built into your offering page that you will be using to answer investor questions.
Ongoing communication with investors and regular updates are important to keep your investors happy about their investment in you and your company. The better you communicate the happier they will be and more likely to invest more and tell others about you — so do this often and do it well!
The funds get wired to you within 10 days after your round closes. You may also do a rolling close or a series of rolling closes, and have funds start being wired to you at predetermined increments starting after you reach your minimum funding goal.
Yes, you need to file an annual report with financial statements and a discussion of your business, no later than 3 months after the end of the fiscal year. If you neglect to file a report, you will be unable to fundraise with Regulation Crowdfunding again until you file the annual report.
Not quite ready? Stay in touch.
*SEC proposal to increase current $1.07M funding limit.
Title3Funds is a funding portal owned and operated by Fundivations, Inc, which is registered with the US Securities and Exchange Commission (SEC) as a funding portal (Portal) and is a member of the Financial Industry Regulatory Authority (FINRA).
Investments in private companies and securities sold under Title III are speculative, generally illiquid, and are particularly risky and may result in total loss of invested capital. The past performance of a security or a company does not guarantee future results or returns. Only investors who understand the risks of early-stage investment and who meet the investment criteria outlined by Title3Funds.com may invest.
Title3Funds is not a Registered Investment Advisor (“RIA”) nor do we make specific security recommendations. It is the investors’ responsibility to conduct their own due diligence or seek help from their financial advisor.
