Frequently Asked Questions
what you need to know about investing in Our funds
create your Financial destiny
investor faq's
Before crowdfunding, startups were limited to raising capital through friends & family, accredited investors ($200k+ annual income or $1mm+ net worth), and traditional venture capital rounds. Passed in 2012, the Federal JOBS Act opened up the US for true equity crowdfunding by allowing non-accredited investors to invest in private companies. The SEC has three major types of crowdfunding, all of which allow for general and online solicitation:
Regulation CF: Companies can raise up to $5mm from unaccredited investors*
Regulation D: Companies can raise unlimited money from accredited investors*
Regulation A: Companies can raise up to $75mm from the general public, including institutional investors*
We believe that for too many years profitable investment opportunities were hidden behind the veil of exclusivity. Equity crowdfunding represents the democratization of venture investing, and we want the general public to have access to invest in the exciting group of curated offerings we have listed here on WAX!
*You can read more about the JOBS Act on the SEC’s website here.
Anyone 18 year of age or older can invest on Veracor’s Investor engine.
Individuals are defined as accredited investors if their net worth (excluding their primary residence), either alone or with their domestic partner, exceeds $1,000,000, or if their annual household income exceeds $200,000 (or $300,000 including that of their domestic partner).
A minimum investment is the minimum amount of capital that you need to invest in order to purchase shares in a company. Minimum investments vary across offerings, as each company can determine what the threshold is for their campaign.
An investment reservation is a commitment made before a campaign goes live to purchase a set amount of securities. When the campaign opens, investors with reservations are given priority to confirm and fund their commitments. No funding is required to make a reservation, and you have the ability to adjust the amount reserved before the launch of the raise.
No, international citizens can invest in opportunities offered by Veracor, but you will be asked to provide additional documentation in order for us to comply with existing regulations.
We supports payments via credit card, debit card, an automated clearing house (ACH), wire transfer, or physical check. This fee is waived for investments larger than $3,000.
Investments greater than $10,000 must be completed via ACH or wire transfer while investments greater than $20,000 must be completed via wire transfer.
Liquidation events are events that allow for those with equity in a company to cash out some or all of their shares. These events are typically initial public offerings (IPOs), acquisitions by another company, or a merger.
While your ownership stake may be diluted if the company you have invested in issues more shares for another round of fundraising, the value of the shares you own will increase if the new round comes with a higher valuation for the company.
Banking regulations, along with anti-fraud and money-laundering laws, require us to ask for and verify your personal information before we can allow you to make an investment.
The majority of offerings are common stock, but some opportunities raise capital through offering, general partnerships, convertible note, debt, and revenue share. You can invest in companies from several different industries.
Investing with confidence?
Given heightened economic risks, we believe investors should consider adding exposure to assets that may benefit from higher inflation or potentially hedge against recession.
Asset allocation - economic risks are rising
We believe that economic activity is likely to slow down considerably in the near term due to elevated inflation and economic weakness. Given this expected shift, investors should, in our view, consider increasing their exposure to asset classes that could benefit from higher inflation—including “real assets” like energy, materials, and real estate equities—and to longer-duration1 growth income assets that could potentially provide a hedge against recession.
Real Estate - Bottom Line
Bottom Line 2023 is shaping up to be a very good year for the sophisticated investor who understands the trends accelerated by the current market challenges and knows how to take advantage of them. Unsettled and volatile markets always present some of the best opportunities—but also present some of the highest risks to those unaccustomed to taking new trends into account. Those interested in this market will need to take note of these trends and how they evolve in the coming year.
