Frequently Asked Questions

Investing

How does InfraShares work?

InfraShares is an online investment platform that uses the internet to pool investors to raise capital for infrastructure development projects and start-ups. Investors have access to information on a variety of investment opportunities and can invest as little as $500 into each such opportunity. Execution of investor documents and fund transfers are handled securely through our platform as well, in partnership with FundAmerica, allowing you to complete the entire transaction through our website.  All paperwork is signed electronically via Docusign and funds are transferred electronically via FundAmerica.  FundAmerica also serves as escrow agent to meet all regulatory requirements.

Investor Education Guide - Regulation Crowdfunding?

Pursuant to Rule 302(b) of Securities and Exchange Commission (“SEC”) Regulation Crowdfunding under the Securities Act of 1933 (Title III of the JOBS Act), as amended (the “Securities Act”), all potential investors who open an account on InfraShares.com and/or commit to purchasing securities are required to receive and acknowledge certain educational information from InfraShares related to the posting of securities offerings on InfraShares, including: (i) how securities on InfraShares are offered and purchased; (ii) the types of securities offered and any resale restrictions on such securities; (iii) the risks of investing in such securities; (iv) investment limits for certain investors; (v) the disclosure generally required to be made available by issuers offering securities on InfraShares (“Issuers”); and (vi) the relationship between InfraShares, posted Issuers and investors. Please review the important information below before you begin to register on InfraShares and before you make any investment commitment.

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Under recently adopted rules, companies can use crowdfunding to offer and sell securities to the investing public, and anyone can invest in a crowdfunding securities offering. Since May 16th, 2016, the general public has had the opportunity to participate in the early capital raising activities of start-up and early-stage companies and businesses.

About InfraShares

InfraShares is a funding portal designed to connect issuing companies with investors through equity crowdfunding.  In order to provide these opportunities, InfraShares has registered with the SEC and become a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) as a funding portal.

As a registered funding portal, InfraShares cannot and will not:

Offer investment advice or make recommendations; solicit purchases, sales or offers to buy securities; compensate promoters and other persons for solicitations or based on the sale of securities; and hold, possess, or handle investor funds or securities.

Allow companies to list securities on our platform that we have a reasonable basis for believing have the potential for fraud or raise other investor protection concerns.

Have a financial interest in a company that is offering or selling securities on our platform under Regulation Crowdfunding outside of financial interest paid as compensation for the services.

Compensate any person for providing us with personally identifiable information of any investor or potential investor.

Please note – following the completion of an offering conducted through the intermediary, there may or may not be an ongoing relationship between the issuer and intermediary.

Investment Considerations and Risks

Prior to registering on InfraShares and before making an investment commitment, you must consider the risks of investing in crowdfunded securities offerings and determine whether such an investment is appropriate for you. InfraShares and its employees are prohibited from offering advice about any offering posted on InfraShares and from recommending any investment. No SEC review is involved in Regulation Crowdfunding offerings.

This means the decision to invest must be based solely on your own individualized consideration and analysis of the risks involved in a particular investment opportunity posted on the InfraShares.

Potential investors acknowledge and agree that they are solely responsible for determining their own suitability for an investment or strategy on InfraShares and must accept the risks associated with such decisions, which include the risk of losing the entire amount of their principal. Investors must be able to afford to lose their entire investment.

InfraShares has no special relationship with, or fiduciary duty to potential investors, and investors’ use of the funding portal does not create such a relationship. Potential investors agree and acknowledge that they are responsible for conducting their own legal, accounting, and other due diligence reviews of the investment opportunities posted on InfraShares.

Investment in small, especially start-up and early stage, companies is speculative and involves a high degree of risk. While targeted returns on the amount invested should reflect the perceived level of risk in the investment, such returns may never be realized and/or may not be adequate to compensate an Investor for risks taken. Loss of an Investor’s entire investment is very possible and can easily occur. Even the timing of any payment of a return on an investment is highly speculative.

Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of startups can be difficult to determine and is often subjective. You may risk overpaying for the equity stake you receive.

There may be additional classes of equity or derivatives with rights that are superior to the class of equity being sold through crowdfunding.  Additionally, investments are subject to dilution, which is when early investors see a reduction in ownership percentage as new stock is issued.

A regulation crowdfunding investment may actually need to be held for an indefinite period of time.  Unlike investing in companies listed on a stock exchange where you can quickly and easily trade securities on a market, you may have to locate an interested buyer privately when you seek to resell your crowdfunded investment even after the one-year restriction expires. There is no assurance these securities will ever be publicly tradable.

An early-stage company may be able to provide only limited information about their business plan and operations because they do not have fully developed operations or a long history to provide more disclosure.

Publicly listed companies generally are required to disclose information about their performance at least on a quarterly and annual basis and on a more frequent basis about material events that affect the issuer.  In contrast, crowdfunding companies are only required to disclose their results of operations and financial statements annually. Therefore you may have only limited continuing disclosure about your crowdfunding investment.

Investment opportunities posted on InfraShares, the adequacy of the disclosures, or the Fairness of the terms of any such investment opportunity have not been reviewed or approved by a state or federal agency.

The Issuer in all likelihood will not have an internal control infrastructure and there cannot be any assurance of no significant deficiencies or material weaknesses in the quality of the Issuer’s financial and disclosure controls and procedures. Indeed, if it were necessary to implement such financial and disclosure controls and procedures, the cost to the Issuer might even have a material adverse effect on the Issuer’s operations.

A portion of your investment may fund the compensation of the issuer’s employees, including its founders and management. Due to inexperience, management may not be able to execute on its business plan. Additionally, unless the issuer has agreed to a specific use of the proceeds from the offering, the Issuer’s management will usually have considerable discretion over how to use the capital raised. You may not have any assurance the Issuer will use the proceeds appropriately. You should pay close attention to what the issuer says about how offering proceeds are to be used.

Because the Issuer’s founders, directors and executive officers may be among its largest stockholders, they may be able to exert significant control or influence over the Issuer’s business and affairs and may even have actual or potential interests that diverge from those of other Investors.  This may worsen as time goes on if the holdings of the issuer’s directors and executive officers increase upon vesting or other maturation of exercise rights under options or warrants they may hold, or in the future be granted. In addition to holding or controlling board seats and offices, these persons may well have significant influence over and control of corporate actions requiring shareholder approval, separate from how the Issuer’s other stockholders, including Investors, may vote in a given offering.

The issuing company may have serious risks specific to its industry or its business model. Demand for a product or service may be seasonal or be impacted by the overall economy. Small businesses, in particular, often depend heavily upon a single customer, supplier, or upon one or a small number of employee(s). It may have difficulty competing against larger companies who can negotiate for better prices from suppliers, produce goods and services on a large scale more economically, or take advantage of bigger marketing budgets.

In light of the relative ease with which early-stage companies can raise funds through crowdfunding, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that crowdfunding investments will be immune from fraud.

Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the issuer’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans.  An early-stage company primarily financed through crowdfunding may not have the benefit of such professional investors.

Audited financial statements are not required for regulation crowdfunding offerings under $535,000.00. The issuer is not required to provide you with annual audited financial statements or quarterly unaudited financial statements, except as explained above. The Issuer may not even have its financial statements audited, or even reviewed by outside auditors.  Your decision to make an investment in the Issuer will be based upon the information the Issuer provides in its offering materials, which may not completely or even accurately represent the financial condition of the issuer.

As explained above, an Investor may not be able to obtain the information it wants regarding a particular Issuer on a timely basis, or at all. It is possible that the investor may not be aware of material adverse changes that have occurred to the Issuer. An Investor may not be able to get accurate information about an Issuer’s current value at any given time.

Federal securities law requires securities sold in the United States to be registered with the U.S. Securities and Exchange Commission (“SEC”), unless the sale qualifies for an exemption. The securities offered on InfraShares have not been registered under the Securities Act, and are offered in reliance on the crowdfunding exemptive provisions of Section 4(a) (6) of the Securities Act [and/or Regulation S promulgated thereunder]. Securities sold on InfraShares are restricted and not publicly traded, and are therefore illiquid. No assurance can be given that any investment opportunity will continue to qualify under one or more of such exemptive provisions of the Securities Act due to, among other things, the adequacy of disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change of any securities law or regulation that has retroactive effect.

The risks highlighted above are non-exhaustive. Investors must carefully review each issuer’s offering materials for a more complete set of risk factors specific to the investment. You should only invest an amount of money you can afford to lose without impacting your lifestyle

Types of Securities Offered

The most common forms of securities an issuer can offer are equity or debt. The securities we offer include the following:

Common Stock: Conveys a portion of the ownership interest in the company to the holder of the security. Stockholders are usually entitled to receive dividends when and if declared, vote on corporate matters, and receive information about the company, including financial statements. This is the riskiest type of equity security since common stock is last in line to be paid if a company fails. You should read our discussion of the risks of early-stage investing here, and pay special attention to the fact that your investment will only make money if the company’s business succeeds. Common Stock is a long-term investment.

Preferred Stock: Stock that has priority over common stock as to dividend payments and/or the distribution of the assets of the company. Preferred stock can have the characteristics of either common stock or debt securities. While preferred stock gets paid ahead of common stock, it will still only be repaid on liquidation if there is money left over after the company’s debts are paid. In certain circumstances (such as an initial public offering or a corporate takeover) the preferred stock might be convertible into common stock (the riskiest class of equity). You should review the terms of the preferred stock to know when that might happen.

Debt / Revenue Share: Securities in which the seller must repay the investor’s original investment amount at maturity plus interest. Debt securities are essentially loans to the company and the major risk they bear is that the company does not repay them, in which case they are likely to become worthless.

Convertible Note: This form of investment is popular with technology startups because it allows investors to initially lend money to the company and later receive shares if new professional investors decide to invest. The sort of convertible note that is most often offered on InfraShares may limit the circumstances in which any part of the loan is repaid, and the note may only convert when specified events (such as a preferred stock offering of a specific amount) happens in the future. You will not know how much your investment is “worth” until that time, which may never happen. You should treat this sort of convertible note as having the same risks as common stock.

Learn more about how to choose the terms of your offering.

Submission and Posting of Form C

Prior to launching a Title III equity crowdfunding campaign, the issuer is required to complete and submit a Form C to the SEC together with required attachments. Companies that file a Form C are required to disclose certain information to the public which can be used to understand an investment and that helps determine whether a particular investment is appropriate for a specific person.

This includes general information about the issuer, its officers and directors, a description of the business, the planned use for the money raised from the offering, often called the use of proceeds, the target offering amount, the deadline for the offering, related-party transactions, risks specific to the issuer or its business, and financial information about the issuer.

Annual Filing Obligation of Issuers

Each Issuer that successfully completes a Title III Regulation Crowdfunding securities offering is required to annually file with the SEC a Form C-AR and financial statements. This must be done no later than 120 days after the end of the Issuer’s fiscal year covered by such filing. Each Issuer must also post its Form C-AR and financial statements to its own website, and that link must be provided along with the date by which such report will be available on the issuer’s website.

The Form C-AR contains updated disclosure substantially similar to that provided in the Issuer’s initial Form C, including information on the Issuer’s size, location, principals and employees, business, plan of operations and the risks of investment in the Issuer’s securities; however, offering-specific disclosure is not required to be disclosed in the Form C-AR.

Investors should be aware that an Issuer may no longer be required to continue its annual reporting obligations under any of the following circumstances:

The issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;

The issuer has filed at least one annual report pursuant to Regulation Crowdfunding and has fewer than 300 holders of record and has total assets that do not exceed $10,000,000;

The issuer has filed at least three annual reports pursuant to Regulation Crowdfunding;

The issuer or another party repurchases all of the securities issued in reliance on Section 4(a) (6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or The issuer liquidates or dissolves its business in accordance with state law.

In the event that an Issuer ceases to make annual flings, investors may no longer have current fnancial information about the Issuer available to them

Investment Limitations

Because of the risks involved with this type of investing, you are limited in how much you can invest during any 12-month period in these transactions. The limitation on how much you can invest depends on your net worth and annual income. If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the lesser of your annual income or net worth.

If both your annual income and your net worth are equal to or more than $107,000, then during any 12-month period, you can invest up to 10% of annual income or net worth, whichever is less, but not to exceed $107,000 or all crowdfunding offerings in any 12 month period.

Required Disclosures

The required type of financial disclosure depends on how much an issuer has already raised within a year, and how much they intend to raise next.

$107,000 or less: If current offer plus previous raises amounts to $107,000 or less, the issuer provides information from the its tax returns (but not the tax returns themselves) certified by the principal executive officer. If financial statements are available they must be provided, too, and again certified by the principal executive officer.

$107,000.01 to $535,000: If the current offering plus previous raises is between $100,000 and $535,000, financial statements are required and must be reviewed by a CPA. If audited financial statements are available, they must be provided.

$535,000.01 to $1.07 million: If current offer plus previous raises amounts to $535,000.01 or more, the required financial statements must be audited by a CPA. However, if the issuer has not previously sold securities under Regulation Crowdfunding, the financial statements will only be required to be reviewed by a CPA.

Note: An audit provides a level of scrutiny by the accountant that is higher than a review.

The required information is filed with the SEC and posted at the start of the ofering on InfraShares and available to the public throughout the ofering on the InfraShares and SEC sites. It is available to the general public on both websites throughout the ofering period – which must be a minimum of 21 days.

Calculating Net Worth

Calculating net worth involves adding up all your assets and subtracting all your liabilities. The resulting sum is your net worth. For purposes of crowdfunding, the value of your primary residence is not included in your net worth calculation.

The SEC’s Investor Bulletin Crowdfunding for Investors contains detailed and useful information about how to perform these calculations and examples here.

Cancellations

As an investor, you will have up to 48 hours prior to the end of the offering period to change your mind and cancel your investment commitment for any reason.

Changing Your Mind

If you do not cancel an investment commitment 48 hours prior to the offering deadline or a rolling close, the funds will be released to the Issuer by the escrow agent upon the close of you will then receive securities in exchange for your investment.

If you do cancel an investment commitment before the 48 hour deadline, InfraShares will direct the return of any funds that have been committed by you in the offering.

However, once the offering period is within 48 hours of ending, you will not be able to cancel for any reason, even if you make your commitment during this period.

Restrictions on Resale

The securities offered on InfraShares are only suitable for potential investors who are familiar with and willing to accept the high risks associated with high risk and illiquid private investments.

You are generally restricted from reselling your shares for a one year period after they were issued, unless the shares are transferred:

to the company that issued the securities;

to an accredited investor;

to a family member (defined as a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships.);

in connection with your death or divorce or similar circumstance;

to a trust controlled by you or a trust created for the benefit of a family member;

as part of an offering registered with SEC

Material Changes

If the issuer makes a material change to the offering terms or other information disclosed to you, including a change to the offering deadline, you will be given five business days to reconfirm your investment commitment. If you don’t reconfirm, your investment will be canceled and the funds will be returned to you.

Frequently Asked Questions

Can I Buy A Title III Regulation Crowdfunding Securities Directly From A Company?

No. Companies may not offer crowdfunding investments to you directly. They must use a crowdfunding intermediary, such as a funding portal like InfraShares or a broker-dealer Each must be registered with the Securities Exchange Commission and a member of the Financial Industry Regulatory Authority (FINRA).

Do investors pay any fees?

Depending on the offering, an investor might pay a 2.5% fee to InfraShares for any investment they make on the platform. This is subject to change at any time and is disclosed in the offering document of the company.

How Does InfraShares Make Money?

InfraShares makes money by charging a commission on the amount of investments raised by the issuer. The commission is 6% of the capital raised. This is subject to change at any time and is disclosed in the offering document of the company.

What Ways Can I Invest?

On InfraShares you can invest in four ways: Individually; as a self-directed IRA; as a Trust, or as an entity like a corporation or Limited Liability Company. If you are interested in learning more about what a self -directed IRA is, or how to convert your IRA to a self -directed IRA, click here.

What Is My Proof of Ownership?

Electronic records will be held with the issuing company’s transfer agent or cap table management service. Once your purchase of stock is complete, you will receive a confirmation email with details of your investment which will include a Countersigned Subscription Agreement. As the offering is “Book Entry” this will operate as your proof of purchase.

What If The Issuing Company Reaches Its Target Investment Goal Early?

InfraShares will notify investors by email when the target offering amount has been met. If the issuing company hits its goal early, it can create a new target deadline at least 5 business days out. Investors will be notified of the new target deadline via email and will then have the opportunity to cancel up to 48 hours before the new deadline. Campaigns must be live for a minimum of 21 days regardless of their progress in meeting their funding target.

The Investment Process on InfraShares

In order to invest, to commit to an investment or to communicate on our platform, you must open an account which entails providing certain personal and non-personal information to InfraShares and its affiliates and/or service providers, including information related to your income and net worth, and other investments. This information is used to verify you as a potential investor who is qualified to invest in investment opportunities posted on InfraShares. For further information on investment limitations, please see “Investment Limitations” above and for information on handling your personal information, please see our Privacy Policy

Additional Resources

InfraShares is required by the SEC to post educational materials on our site. While those educational materials are a great start to educating yourself and understanding the risks of making crowdfunding investments, it is really only the beginning of your journey. Be sure to investigate the issuing company and to participate in our online forum where you can interact with other investors, weigh in on the pros and cons of an opportunity, and ask the issuing company questions.

If you or someone you know wants information about raising capital for a company, feel free to continue exploring our help section or reach out to a InfraShares team member at contact@InfraShares.com

To learn more about crowdfunding, see the adopting release and complete text of Regulation Crowdfunding.

How do I contact the company (Regulation CF)?

To contact the company directly, please leave a comment for them on their campaign via the comments section and a member of their team will be able respond to you shortly.  Please note that you cannot use or leave your personal email address as the company can only communicate with investors through the InfraShares platform.

Why should I use InfraShares to invest in infrastructure?

InfraShares allows you to passively invest in infrastructure investments for as little as $500, from the convenience of your living room. You will have access to investment opportunities in a variety of asset types and geographies, giving you the ability to create a portfolio of infrastructure investments that meet your specific investment goals. You will also have access to an investor dashboard where you can securely monitor your investments and any potential cash distributions.

How does InfraShares screen investments?

Before placing any investment opportunity on our platform, the InfraShares team reviews aspects of the proposed transaction, such as: financials, geography, asset type and quality, and investment structure. In order to decrease fraud, we also perform background and credit checks on the individuals managing the project or company. Once an investment opportunity is listed on the platform, investors have full discretion as to whether to personally invest in the opportunity, and if so, how much.

When I invest on InfraShares, what do I own?

In an equity offering, you will own shares of the company making the offering.  The class of shares is dependent on each offering.

What will the return on my investment be?

InfraShares assists companies in raising capital and is not involved with the next steps after a campaign has ended. We are not able to make any assurances about investment returns, or whether or not the company chooses to list shares on a secondary market. We recommend that you refer to their campaign page and Offering Details document to learn more about the company’s next steps, financial projections, and any other specific questions that you have.
For Regulation Crowdfunding offerings, you are also able to ask questions to the company through the “Comments” section of their campaign page.
As a reminder – investing in equity crowdfunding offerings is very risky. You should not invest more than what you are able to afford losing.

Can I invest using an IRA?

You may use your IRA, Trust or company to invest. Just specify that you are investing as an IRA, Trust or company instead of as an individual during the investment process by creating an investment account as a non-person legal entity such as a company, trust, or self-directed IRA.
It won’t be as an ACH — it has to be either a check or wire, depending on how the IRA company sends funds. You will need to request it from the IRA as they will be the vesting entity.  We’ll be sent funds that say something like:  Big IRA Company, Custodian for (or FBO), sometimes they add an account number.

What does it mean when a company is conducting a "close"?

For Regulation Crowdfunding, after 21 days if the Company has reached their minimum funding goal, they are able to conduct a “close” on their offering. The Company is required to give at least 5 business days notice to their investors before conducting a close. After that period, all cleared and received investments will be moved to the Company’s account and cannot be refunded.

If I am included in this “close” can I later cancel my investment?
No, you cannot. If your investment has “cleared” the necessary 10 day ACH clearing period as well as any Anti-Money Laundering or Background checks, you will have up until 48 hours prior to that updated close date to cancel your offering. If you do not cancel before the close, you will not be able to cancel your investment later as the funds will have been moved to the company’s acco

Can I cancel my investment?

Investors may for any reason cancel an investment commitment until 48 hours prior to the deadline identified in the issuer’s offering materials. Once the funding round has closed, you will not be able to cancel your investment. If you’ve already submitted payment, you should expect a refund within 10 business days.

Can I modify my investment?

No, you cannot modify an investment after you’ve completed your commitment to invest. If you wish to invest a different amount or make other such modifications, you may cancel your previous investment and make a new investment.

Can the issuer or the portal cancel my investment?

Yes, as long as your funds are still in escrow, or haven’t yet been received, your investment may be canceled. Once the funding round has closed, your investment cannot be canceled.

How are contracts signed?

During the investment process, you will receive specific instructions about how you are to sign any documents. Each offering may use it’s own method of signing, so review instructions carefully during the investment process.

How do I pay?

During the investment process, you will receive specific instructions for that offerings method of payment. The method of payment is specific to each project, so carefully review each step of the investment process.

How much can I invest?

The amount of funding you can invest depends on your status as an investor, the governing regulation, and limits the issuer has chosen to place. When you begin your investment, you will be shown both the maximum and minimum investment limits.

With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $107,000, are limited to invest a maximum of 5%. For those with an annual income or net worth greater than $107,000, he/she is limited to investing 10% of the lesser of the two amounts.

What happens if an offering doesn't reach it's funding goal?

If an offering hasn’t reached it’s funding goal by the end of a funding round, the project will close and your committed funds will be refunded. You should expect to receive a refund within 10 business days.

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.

Will I pay a fee for investing?

InfraShares makes its money by charging fees to issuers, the company selling shares. That being said, issuers can opt to offset the costs by having investors pay a percentage in the form of a processing fee. This fee will be charged to investors on top of the price of shares. Your total amount charged and shares will be stated clearly on the investment form as a 2.5% processing fee.
If you are paying via ACH transfer, there are no additional fees to investing. If you are paying via a wire transfer, there may be additional fees charged by your bank related to the transfer of funds. In the event that you make a wire transfer, please be sure to talk to your banking institution about the fees involved, so that you can pay any additional transfer fees needed.
In the event the offering does not reach its minimum funding goal, the total amount invested (including the fee if applicable) will be returned to the investor within 10 business days.

Will I receive project updates after I invest?

Because there may not be any relationship between InfraShares and the issuer after the offering is completed, you may or may not receive updates from the project issuer on the status and progress of the project or company. If you do receive updates, you will be notified directly of these updates, and they may be viewed on the project/company itself under the update section.

Opportunity Zone Funds

What is the process?

Individuals who are realizing a capital gain across all asset classes can invest those monies on a tax deferred basis, as long their gain is invested in a qualified opportunity fund within 180 days of the sale or exchange.  The process is very easy:

  1. Agree to the subscription agreement;
  2. Transfer funds to our third-party trust administrators;
  3. Receive membership interest certificate and tax statement.

The whole process is usually completed within 48 to 72 hours.

In certain situations where an individual is facing the expiration of the 180 day window we can expedite the process to same day.

What are the investment restrictions?

The capital gains must be invested in qualified opportunity funds that have 90% of their assets invested in qualified opportunity zones.

How do I qualify?

All capital gains on the sale, or exchange of any asset to an unrelated party invested within 180 days, are eligible for the tax benefits.

Can I put my 1031 money in?

Yes. Opportunity Funds are designed to be easier with less hassle than 1031 Exchanges.

What can I invest in?

Qualified opportunity zone business stock or LLC membership interest, or opportunity zone property are all eligible investments.

How long is the investment period?

Opportunity Zone rules allow for a stepped-up basis depending on the holding period. A 5-year hold will grant the investment a 10% stepped up basis. A 7-year hold grants the investment an additional 5% of stepped up basis, totaling 15% on original basis. Finally, after 10 years, investors permanently avoid any capital gains tax on any gains from the opportunity zone fund investment.

What is the investment rollover period?

Investors have 180 days to invest realized capital gains.

Do I have to pay the original deferred taxes?

In part. The original taxes are deferred until December 31, 2026 (or the date of a sale, whichever is earlier). Investors will have to recognize a portion of the deferred gains that year. Investors may benefit from the step up in basis at years 5 (10%) and 7 (another 5%) if they reach either holding period before December 31, 2026.

Where are the opportunity zones?

Opportunity zones are currently being designated by the governors of each state. Each state may designate 25% of the eligible census tracts in their state. As of right now, all 50 states and Puerto Rico have submitted and have been approved for designated Opportunity Zones.

Promote An Investment

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.

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.

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 it’s funding goal by the end of a funding round, the offering will close, and committed funds will be refunded. If you have directly received any funds, you should issue refunds within 10 business days.

What happens once I submit my offering?

Once your offering has been created, we do a thorough check to see if your offering meets all of our requirements, then we validate you and your information. We work closely with you until your investment meets our criteria. When it has met the criteria for an offering on our site, we’ll approve the project and it will automatically go live on the start date you’ve selected.

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.