Questions & Answers

  • What is SeedingU?

    SeedingU is a Regulation Crowdfunding ("Reg CF") funding portal where Issuers can offer equity securities and US residents can invest in companies.

  • How can I raise capital for my business?

    To create a new offering on SeedingU, submit your application info using the 'Raise' button in the top menu. Just fill in all the fields following the instructions on-screen, click the 'Save' button, and we will review it with 1 week and let you know.

  • How do I receive funds from my successful Offering?

    SeedingU will direct the escrow agent to release funds from escrow after the offering has met the minimum target per the terms of the offering and escrow agreement. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.

  • How much does it cost to raise capital on SeedingU?

    SeedingU has two fee structures. Option one: flat fee of 7% from the total successful raise. Option two: flat fee of 7% from the total successful raise plus 2% equity as well as reimbursement of any upfront fees paid on the startups behalf.

  • Does SeedingU accept any business that applies?

    No. Each application must meet preliminary business requirements set by SeedingU and strict legal requirements under Regulation Crowdfunding. Additionally, SeedingU reviews every proposed offering. In some instances, SeedingU will choose not to list offerings because of the characteristics of the business or the funding request. For example, SeedingU does not accept businesses that promote illegal activities or offensive behavior (e.g., hate speech, encourage violence toward others) through its business or via the products or services offered for sale.

  • Does SeedingU offer SAFEs?

    Yes

  • Are there restrictions on types of companies to raise funds on SeedingU?

    Yes. Only US registered companies can raise funds on SeedingU.

  • Are there upfront fees?

    No and yes, it depends. SeedingU pays for all escrow set up fees and does not charge a fee to list. However, depending on the fee structure chosen, you may be required to cover the costs of upfront legal, accounting and marketing expenditures.

  • Is there a Max amount I can raise?

    Yes, we only offer Reg. CF raises and at this time the max raise is set at $1,070,000 USD.

  • Is there a minimum amount an issuer can raise?

    Yes, the minimum amount is $50k USD.

  • How do I receive payment?

    During the creation of your project, you will be required to provide information to the portal for escrow. Carefully review all instructions to ensure that you provide sufficient information. Once the campaign has reached its target goal, escrow will release the funds to the company’s bank account as determined when setting up the escrow account. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.

  • How do my investors receive signature documents?

    During the creation of your project, you will receive instructions to upload the signing instructions. Different types of offerings have different types of signature requirements, so it is important that you carefully review all instructions during the project creation process. If you are not given an opportunity to provide signature instructions during the project creation process, you will be contacted by our customer support to ensure that the signature documents are correctly associated with your offering.

  • May I cancel an investment on my offering?

    Yes, as long as the investment are still in escrow, or haven't yet been received, you may cancel any investment. Once the funding round has closed, investments cannot be canceled.

  • What happens if an offering doesn't reach its funding goal?

    If an offering hasn't reached its minimum funding goal by the end of a funding round, the offering will close, and committed funds will be refunded. SeedingU will pay for escrow fees, transaction fees and related legal fees associated with the setting up of the campaign if unsuccessful.

  • When will the offering close?

    An offering closes when either the maximum amount of funding has been reached, or the end date of the funding round has been closed. Remember, the offering must be open a minimum of 21 days and if the offering date is changed, investors must be notified 5 days before the closing.

  • Can I extend an offering?

    Yes, as long as your offering has not already closed. If you wish to extend an offering, please contact our support team.

  • Are there legal issues I need to be aware of?

    We will be doing bad actor checks on all company officers and shareholders of 20% or more within your startup. As far as what’s shown in your campaign on SeedingU, you are legally liable for every statement in your campaign and that it’s 100% true, and that you have not omitted any important information investors should know about (for example, a lawsuit or known patent infringement).

  • Do I need to supply reviewed financial statements before raising funds under Reg. CF?

    Yes, rules mandate reviewed financial statements for offerings between $107,000 and $535,000, and audits of financial statements for offerings greater than $535,000 (noting a maximum offering of $1,070,000).

  • Do I need to have clearance from the SEC before raising funds under Reg. CF

    No. SEC review or clearance of your offering statement is not required. However, you must submit to the SEC your offering statement prior to raising funds on SeedingU (Form C). Our securities lawyer will do that for you at no upfront charge and we will only be reimbursed if your campaign is successful.

  • Simply put, what information must be provided by law under Reg. CF rules?

    Supply Information about officers & directors as well as owners of 20% or more of the company (3 years back-data). A description of the company’s business and use of funds raised from the offering. Price and number of the securities being offered. Campaign raise targets (min raise, target raise and max raise). Certain related-party transactions or lawsuits. Description of the financial condition of the company and financial statements during a 12-month period prior to offering with a copy of 3rd party audit.

  • Can anyone raise funds on SeedingU?

    We only list campaigns that meet the following criteria: 1: Must be a US registered company. 2: Must be a company offering products and services within the Extended Reality, Esports and Cannabis industries. 3: Must have a minimum raise requirement of $50k USD. 4: Must have a maximum raise requirement of $1,070,000. 5: Must meet all fraud prescreening requirements.

  • What do I have to do?

    Click the “Raise Funds” link and register. Answer the next few questions and submit your campaign and contact details. From there, let’s have a call to discuss your needs and our requirements and fees.

  • How long does this process take before I see the money?

    Campaign setup should only take a week but that depends on what you have done already and how fast you take to execute on the deliverables. As far as how long the campaign will run, the offering must be open a minimum of 21 days. If the date is changed, investors must be notified at least 5 days prior to the closing. Most campaigns last no more than 90 days and all funds are held in escrow until you hit either your minimum target, your maximum target or the campaign expiry date. If successful, the funds are released from escrow and should hit your account within 10 business days.

  • Can you create a campaign for us?

    Yes, we can do everything for you from soup to nuts but it will come at additional costs. If this is something you are interested in, let’s have a call to discuss.

  • Do I need to create an investment contract or do you have a template I can use?

    You can create and then upload your own or use our template.

  • How can I raise more than $1 million?

    Yes but not with us. We only offer Reg. CF offerings at this time which limits raises to $1,070,000 or less within a 12 month period. However, the rules state you can have congruent campaigns through Reg. D and Reg. A+ offerings. But at this time we do not offer such services.