Investment Agreement Sec

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Crowdfunding usually refers to a method of financing that raises money by recouping relatively modest individual investments or contributions from a large number of people. In May 2016, the SEC adopted rules under the Jumpstart Our Business Startups Act (JOBS Act) allowing individual investors to participate in securities-based crowdfunding. It is important to understand the terms of each SAFE in which you invest through a crowdfunding offer. Here are five things to know about a safe offer. Some issuers have offered a new type of collateral as part of some crowdfunding offerings – which they have called safe. The acronym stands for Simple Agreement for Future Equity. These securities carry risk and are very different from traditional common shares. As the Securities and Exchange Commission (SEC) states in a new Investor Bulletin, a SAFE offering, whatever its name, cannot be “simple” or “safe.” For more information on SAFE securities, see the SEC Investor Bulletin. For the latest Investor Alerts and other important investor information from FINRA, sign up for Investor News….

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