Big Companies Start Small
Ready to raise funds?
Build Your COMPANY, Dream Big
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
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.
Our Title3Funds advisers are committed to your success and help facilitate connections with experts who get the job done.
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)
Title3Funds: Your Partner in 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*.
Your Path To Funding
Ready to raise funds?
Learn more about raising capital
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.
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.
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.
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.
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.
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.
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)
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.
No. We will only accept fundraising applications and create a company profile if your campaign is approved.
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.
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.
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.
We are open to working with for-profit U.S. Corporations or LLCs across most industries — from retail, to entertainment, to technology, and more.
Prior to fundraising, you should do your own due diligence and research potential legal issues with Crowdfunding platforms.
We support Regulation Crowdfunding.
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.
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.
$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.
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.
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
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.
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.”
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.
The minimum you can raise with Title3Funds.com is $100,000.
Regulation Crowdfunding dictates that you can raise a maximum of $1,070,000 per year.
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.
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.
You will generally receive the money 30 days after funding is completed. Title3Funds will complete the investment process and disburse the funds.
An investor is required to hold shares for a minimum of one year, according to SEC regulations.
We recommend working with your accountant and using a Cap Table for reference.
We are happy to discuss additional funding options, should they be required.
Sorting & Curation
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.
We use a complex algorithm that sorts offerings by objective metrics.
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
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.
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.
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.
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.
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
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.
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.
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.
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.
We wire the funds to your corporate account within 10 days after your round closes on Title3Funds.
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.
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.
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.
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.
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.
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.