Big Companies Start Small

Ready to raise funds?

Build Your COMPANY, Dream Big

0 M+

Eligible investors in the U.S., and many more globally, who would love to get in early on the next unicorn.

Why We’re Different

Title3Funds allows the everyday investor to get in on the next big thing.

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:

We want our investors to feel confident with their investment options on Title3Funds. Our offerings are highly curated, thoroughly vetted to provide investors with the best opportunities.

Our Offering

Raise up to $5M* annually on Title3Funds.com. Our team will help you craft your investment pitch into a unique web page, and raise capital from investors online. Ultimately, funding the next phase of your growth with a bigger and stronger community behind you.

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.
  • We do not charge any upfront fees. 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

Our account managers help you prepare for your offering, which will then be reviewed by the Title3Funds team.

Campaign Strategist

We want you to have the best results possible, our strategists will work closely with you to maximize your offering.

SEC Filings

Title3Funds will work with you to submit your Form C to the SEC in order to raise funds via Regulation Crowdfunding.

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

Investors can pay for their investment via ACH, check, wire transfer, credit card, or by transferring funds from their retirement account.

Future Raises

We manage the logistics of fundraising, so you can continue raising capital year after year.

Dashboard

Investment History

Stay up to date with your campaign by tracking the number of investors and followers your campaign has day–to–day.

Investor Information

Share the success of your campaign to your investor community with access to contact information for updates and promotional purposes.

Campaign Visibility

Title3Funds works with leading digital marketing agencies that help companies raise capital from both our investor community and targeted audiences.

Your Path To Funding

Ready to raise funds?

Learn more about raising capital

Getting Started

What Title3Funds Does

Title3Funds helps startups and small businesses receive funding so they can fulfill their company vision. In short, we manage the logistics of fundraising, so you can focus on what you do best — growing your business.

What is Crowdfunding?

Crowdfunding is a financing method in which money is raised through soliciting small individual investments or contributions from a large number of people. Over the last few years, crowdfunding websites like Kickstarter have become a popular way to solicit donations and to raise money for artistic pursuits like films, music, and creative performances.

Why did you start Title3Funds?

In essence, we wanted to level the playing field for startups and investors. We set out to create a FAIR and equitable place where these two entities can come together for a common cause.

Is it legal for startups to use Crowdfunding?

Yes, but it’s fairly new. Under rules adopted by the SEC in 2015, startup and early-stage businesses may raise capital with crowdfunding. This new regulation allows companies to use securities-based crowdfunding to offer and sell securities to the investing public. Learn more here.

How are you different than Kickstarter?

Title3Funds lets investors own a small stake in a business, while Kickstarter only allows investors to purchase products. This makes the investing process exciting, but investing in startups is also VERY risky. Educate yourself thoroughly and know the risks before you get started. You should never invest so much that it would impact your lifestyle or retirement plans if your entire investment is lost. Only invest what you can afford to lose.

Why raise funds from the crowd?

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.

I am new to Crowdfunding. Where should I begin?

Welcome! We are happy to guide you through the Crowdfunding process and strongly believe that the first step is self-education. We suggest you start by reading through all of our Frequently Asked Questions for Businesses and also reviewing our Glossary of Terms. Once you are familiar with the logistics, you may want to 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)
    • SBA (Small Business Association)

Learn more about crowdfunding: Click Here.
Read the SEC Investor Bulletin: SEC Investor Bulletin: Crowdfunding (February 16, 2016)

How can I join Title3Funds as a business?

Once you are ready, we encourage you to submit an application for your first fundraising campaign. We will review and evaluate your company profile and campaign objective, as detailed on your application. If your campaign is approved for the Title3Funds website, you will be assigned a company profile and will be able to activate your first round of fundraising.

Can I have a profile even if I’m not fundraising?

No. We will only accept fundraising applications and create a company profile if your campaign is approved.

How will you evaluate my business?

We are highly selective about choosing businesses that represent our values and mission. For us, it’s about quality over quantity; we would rather have 10 exceptional businesses on our platform, than 1000 mediocre ones.
Our evaluation process is extensive. We will review your team, traction, market size, value proposition, and other factors to determine if your company is a good fit for our platform. Your fundraising campaign will be evaluated based on objective, budget, plan, feasibility, and additional criteria.

We ultimately want to showcase businesses that have a unique idea or a new spin on an old concept. And we will only consider companies with a track record that indicates they will be able to effectively manage the newly acquired funds. We prefer to work with founders have already demonstrated accountability by investing their own capital in the business.

How are you better than your competitors?

Title3Funds has established itself as an excellent option for startup crowdfunding. There are several factors that make us unique.

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. Our team of advisors carefully chooses partners to work with based on the needs and wants of our investors.

Accountability: We are committed to improving the process. Collectively, our team has processed nearly $500 million in transactions and we use the latest technology to improve efficiency and accountability in the Crowdfunding Space.

Startup Services: Each startup will be paired with an Title3Funds advisor who may personally connect you with industry-appropriate attorneys, accountants, website developers, marketing consultants, and more. There is a suggested investment of $5-10K in services to ensure that your campaign is a success, and we can help facilitate connections with people who get the job done.

Fundraising 101

When am I ready to start fundraising on Title3Funds?

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, a good track record, and maybe even some paying customers.

We also suggest at least one experienced investor that publicly endorses your company to help set the terms of your fundraise.

What kind of businesses can get funded?

We are open to working with for-profit U.S. Corporations or LLCs across most industries — from retail, to entertainment, to technology, and more.

What legal issues do I need to be aware of?

Prior to fundraising, you should do your own due diligence and research potential legal issues with Crowdfunding platforms.

What fundraising exemptions do you support?

We support Regulation Crowdfunding.

What investment contract can I use?

We support raising funds with any security, such as a loan, convertible note, SAFE, revenue share, or priced stock. You can upload your own investment contract, or, if you’d rather not hire a lawyer, we include several investment contracts you may use free of charge.

How do I set my valuation or terms?

If you have already raised capital from at least one professional investor, they will help set the terms. Otherwise, you will be assigned a Title3Funds advisor who may be able to provide assistance.

How much does it cost to fundraise on Title3Funds?

$0 listing fee + 5-7% cash and/or securities on the gross 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.

Do you group all investors into one shareholder?

We have created several options for Crowdfunding SAFEs that proxy all voting power to a Lead Investor and the CEO. When you use our SAFEs, you only need to deal with one person if you ever need a signature during your follow-on financing.

Do all those investors have voting rights?
No, small investors also don’t have any voting rights if you use the Crowdfunding SAFE.
How does the investment process work?

An investor will review your profile and current round of fundraising, and if interested, submit an application to invest. When an investor applies to invest, they digitally sign the investment documents and enter their bank account information. Once accepted, the investment is sent to an escrow account. The money will be transferred to your corporate account 7-10 days after the round closes, provided your fundraising target has been met.

Fundraising with Title3Funds

How can I create a good campaign?

First, 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.

Second, support everything with numbers; statistics and dollar amounts help tell your story and build support around your business.

Third, make sure your profile is 100% true. You are legally liable for every piece of information you include on your profile. 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.

Are there any legal issues to consider with my campaign/profile?

Yes. You are legally responsible for providing accurate information to the investors. This means your company profile must contain factual information that is 100% accurate, without any vital omissions.

When you fundraise with Title3Funds, you are legally liable for every statement on your profile, so make sure it is 100% truthful and accurate, without omitting information investors should know about (i.e., a lawsuit).

When building your profile, avoid future promises and forward-looking numbers like “we plan to make $7 million next year.” Instead try, “We hope to continue growing by doing x, y, and z.”

How should I set my fundraising target?

The short answer is to set your target at the lower end of your range.

When you fundraise with Regulation Crowdfunding, you must hit your funding target in order to get funded at all. But, you are allowed to accept over-subscriptions.

Our best recommendation is to set the funding target to the lowest dollar amount that would benefit your business, and then outline how you would use any extra money received. If it costs $40,000 to purchase a new machine, but you could use $800,000 to buy more equipment, set $40,000 as your funding target then indicate what you would do with the $800k. This should maximize your chance of receiving funds.

What is the minimum I can raise?

The minimum you can raise with Title3Funds.com is $100,000.

What is the maximum I can raise?

Regulation Crowdfunding dictates that you can raise a maximum of $1,070,000 per year.

I submitted my funding request. What happens now?

Once your submit your application, our team of consultants will analyze your business information and funding request. We will review your team, traction, market size, value proposition, and other factors to determine if your company is a good fit for our platform. Your fundraising campaign will be evaluated based on objective, budget, plan, feasibility, and additional criteria. We will prepare a comprehensive funding report for our Investment Committee and they will make a final decision regarding your approval.

How long does the funding process take?

It’s pretty quick. It generally takes 6 weeks from the time of your application submission to final approval with an actual funding date. Once fully funded, you should expect to receive your funds within 2 weeks.

When does my business receive the money from investors?

You will generally receive the money 30 days after funding is completed. Title3Funds will complete the investment process and disburse the funds.

How long is an investor required to hold my shares?

An investor is required to hold shares for a minimum of one year, according to SEC regulations.

Who determines the value of outstanding shares?

We recommend working with your accountant and using a Cap Table for reference.

How can I request additional funding?

We are happy to discuss additional funding options, should they be required.

Sorting & Curation

Are certain companies given preferred placement on the Title3Funds portal?

No. We do not give preferential treatment to any startups and we do not offer prime placement to any business. We do, however, screen companies for signs of fraud and ensure that our presentation of investment options is both legal and fair.

How are companies auto-sorted on Title3Funds?

We use a complex algorithm that sorts offerings by objective metrics.

Can I pay to be featured more highly?

No. This is not an advertising platform. It is legally and ethically required that we sort companies based on objective measures only.

Promoting a Campaign

Am I allowed to promote my fundraising campaign?

Yes, especially if you want it to be successful. Tell everyone you know and shout it from the rooftops! The most successful campaigns are those with the best promotion.

Are there legal restrictions on advertising?

Yes. For Regulation Crowdfunding, you are only allowed to promote/advertise after your Form C is filed with the SEC.

Advertisements must be limited to factual information, so avoid qualifiers like ‘the best’ and ‘the greatest’. By law, all advertisements must also include a link to your Title3Funds profile and it is recommended that you avoid any reference to the SEC having “approved” your offering.

There are not any restrictions on advertising type, so you are free to advertise in whatever way is best for your business – PPC ads, email, Facebook, social, print, whatever.

Are there legal restrictions on 'real life conversations' or public talks?

Yes. For Regulation Crowdfunding, you are allowed to talk to the public about the facts of your business or products, provided you do not mention the terms of your fundraise. The SEC specifically states that their rules do not restrict an issuer’s ability to communicate other information that might occur in the ordinary course of its operations and that does not refer to the terms of the offering.

In other words, if you meet someone in the coffee shop who may be a potential investor, you should still talk to them. You can answer their questions about your business and point them to your Title3Funds profile page to review terms and make an investment. You should only state true facts during your conversation and do not discuss or reveal the terms of your fundraise.

How much work do I have to do to raise funds?

Make an impact on the first day, and it will make the rest of your campaign that much easier. When investors see other people making contributions, it makes them feel more comfortable investing themselves.

How much money can I raise with Title3Funds?

The minimum amount you can raise is $100,000 and your maximum limit is $1,070,000, via Crowdfunding regulations. The success of your campaign will hugely depend on the quality of your profile and the power of your following. You get out what you put in.

After the campaign

How do I close my fundraising campaign?

You must wait until your funding target has been met, and at least 21 days have passed, before initiating the close of your campaign. If you choose to close your fundraising campaign, it is required that a notice of cancellation is sent to the investors and that all investments are refused. In the case that you wish to close your fundraising campaign within 5 days of the target end date established by the issuer, than the offer must be extended to allow five (5) full business days for the investor to reinvest funds to the offering. All Investors have the right to cancel investment commitments for any reason until 48 hours prior to the offering deadline.

What happens if a material change occurs?

If a material change in your business has occured during your fundraise, 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 notice.

A material change is anything a reasonable person would think should be disclosed to investors because they might change their mind, such as your co-founder quitting, a deal falling through, or an unexpected drop in sales.

What if my campaign fails?

If your campaign fails, 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.

Can I extend my funding deadline?

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 is still a better option than having a failed campaign.

How long does it take to get the money?

We wire the funds to your corporate account within 10 days after your round closes on Title3Funds.

Will investors contact me directly?

No. We do not hand out your email address, phone number, or any other contact information. All communications with investors are handled on your company feed.

How often should I update investors?

Keep your investors in the loop, in a way that works for you. We update our investors regularly and many of our businesses send monthly or quarterly updates.

Do I need to file an annual report?

If you do a Regulation Crowdfunding offering, you need to file an annual report once a year 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 (however, you may still raise funds from accredited investors with Regulation D)

Companies are not obligated to file annual reports if they file for an IPO, are acquired by a purchaser, repurchase all crowdfunded investments, file for bankruptcy, have fewer than 300 shareholders after 1 year, or have less than $10 million in assets after 3 years.

How much does it cost to use Title3Funds after my fundraising campaign is over?

Once your campaign is completed, you may want to continue using our platform to communicate with your investors. We charge a nominal fee of $99/month to maintain your profile, collect followers, and submit ongoing updates to your current investors.

Should I update investors?

YES! On your dashboard is a form to send updates out to the Title3Funds community. We recommend updating often and offering a personal look into the business with videos, photos, and more!

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.