Investing on Bolstr is really easy. Once you’ve reviewed the businesses campaign overview, simply click on “Invest" and follow the wizard through the investing process. Once the business successfully reaches their goal, funds will be pulled from the account you linked and placed into an escrow until the closing process is completed.Back to top
To link your account, simply click on the gear box in the upper right corner of your screen, and select "My Linked Accounts" from the dropdown. Then follow the steps to add your account.Back to top
Account verification is done via micro-deposits. Micro-deposits are two small deposits that Bolstr sends to your investment account within 1-2 days of the linking of your account. Once the micro-deposits have posted to your bank account, you will login to Bolstr and navigate back to the "My Linked Accounts" section found in the settings drop down. Select "Verify" next to your linked account, and enter the amounts that posted to your bank account.
Once you've entered the micro-deposit amounts your account will be verified!Back to top
To make an investor commitment in the Bolstr Marketplace, you must first verify that you are an accredited investor. If you were invited to a private Bolstr Community funding raise, and you have a pre-existing relationship with the business owner, you may not have to be an accredited investor.Back to top
An individual accredited investor is defined by the Securities and Exchange Commission ("SEC") as the following:
1. A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; or
2. A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
For the complete definition, including other types of accredited investors, such as investment companies please see the SEC's website.
On Bolstr, you can privately, and securely verify your accredited investor status in three simple steps:
1. Login to your account and click on the "Verify My Status" button from your settings dropdown
2. Enter contact information for a person who may verify you. This can be anyone who has direct knowledge of your annual income or net worth, such as your Investment Advisor or Certified Public Accountant.
3. Click on the "Send Verification Letter" button.
After you hit send, we will email your Verifier a letter for electronic signature, where they will have the ability to confirm your status. To expedite your verification, please email your Verifier separately, and let them know you're awaiting their sign-off. If you would like to self verify your accredited status please email us at firstname.lastname@example.org.Back to top
To certify that your investment company is an accredited investor, please email email@example.com one of the following:
1. Proof of registration with the SEC.
Acceptable Documentation may include:
2. Proof that the investment company is a partnership with $5 million+ in assets
Acceptable Documentation may include:
3. Proof that all equity owners of the Investment Company are accredited Investors ( Please see FAQ question # 5 for how to verify the accredited investor status of an individual)
If you have more questions about what an Investment Company is, or would like a complete list of acceptable documentation that proves your Investment Company is an accredited investor, please visit the SEC's website.
When a business reaches their funding goal, the Bolstr campaign will be locked to any new commitments. Investor funds will be pulled from their linked account and placed into a secure escrow until the business countersigns each revenue sharing agreement. Once documentation is complete, funds will be transferred from escrow into the businesses account, and you will be able to access the fully executed agreement via the "download investment agreement" link on your account dashboard.Back to top
That’s right. The business owner is only able to access funding if they successfully reach their goal.Back to top
Each month the business will report the amount of gross sales they generated. We’ll then calculate what portion of the share is attributed to you, and send you a notification when a payment has been made. Payments will be directly deposited into your linked account.Back to top
We require each business to upload a bank statement confirming the amount of revenue they generated during the month of each payout. At the end of the year, each business must also upload their year end tax return, and true investors up for any discrepancies.Back to top
If a business fails to make a payment for more than 15 days greater than the payment due date, the agreement will be considered to be in default. In a default event, the Issuer shall deliver the entire Investment amount to the Investor within ninety (90) days. For security purposes, each Issuer is required to provide a personal guarantee on capital raised. In some cases a business will be required to provide collateral to protect investors in a default event scenario.Back to top
A Revenue Sharing Agreement is a contract between a business and their investors. Through a Revenue Sharing Agreement, the business agrees to share a percentage of their gross revenue with their investors (paid monthly), until a predetermined Multiple on their investment is achieved. Investors will not own any equity in the business.
What is an investment multiple?
An Investment Multiple determines the amount of profit earned over an investors initial investment.
For example: If an investor were to make an investment of $1,000 into a local ice cream shop, and the predetermined Investment Multiple on the Investment was 1.20x, the investor would receive a percentage of each ice cream cone sold until they were paid back $1,200 ($1,000 X 1.20).
Once the Investment Multiple is achieved, investors no longer have an investment interest in the business.
How are the payout amounts determined?
Payouts to investors are based on a predetermined Percentage of Revenue, set by the business owner. Each month, investors will receive a payout based on this predetermined percentage, which is calculated by multiplying the gross revenue generated by the Percentage of Revenue.
The Percentage of Revenue represents the total share of gross revenue investors are collectively paid each month. Individually, each investor is entitled to a pro-rata share of the Percentage of Revenue based on the amount of money they contributed towards the Fundraising Goal.
Investor Payout = (Investor Investment Amount / Fundraising Goal) X (Monthly Revenue X Percentage of Revenue)Back to top
No. Bolstr does not guarantee the repayment of revenue sharing agreements. Investing in startups and early stage small businesses is very risky, and anyone considering making an investment on Bolstr should only do so if they can afford the loss of their entire investment. You should carefully consider the specific information and risks disclosed by the issuer of the securities. You should not invest any funds in an offering unless you can afford to lose your entire investment.Back to top
Campaigns on Bolstr last for 30-60 days. Once the business reaches its funding goal, the campaign will close and no further commitments of interest will be accepted.Back to top
If a campaign does not reach its funding goal in the allotted time, the campaign will close unsuccessfully. In this scenario, any investor commitments will be automatically canceled.Back to top