Answers to common questions about the offering. Tap a question to expand.
Why invest in startups?
Regulation CF allows investors to invest in startups and early-growth companies. This is different from helping a company raise money on Kickstarter; with Regulation CF offerings, you aren't buying products or merchandise — you are buying a piece of a company and helping it grow.
How much can I invest?
Accredited investors can invest as much as they want. But if you are NOT an accredited investor, your investment limit depends on either your annual income or net worth, whichever is greater. If the number is less than $124,000, you can only invest 5% of it. If both are greater than $124,000 then your investment limit is 10%.
How do I calculate my net worth?
To calculate your net worth, just add up all of your assets and subtract all of your liabilities (excluding the value of the person's primary residence). The resulting sum is your net worth.
What are the tax implications of an equity crowdfunding investment?
We cannot give tax advice, and we encourage you to talk with your accountant or tax advisor before making an investment.
Who can invest in a Regulation CF Offering?
Individuals over 18 years of age can invest.
What do I need to know about early-stage investing? Are these investments risky?
There will always be some risk involved when investing in a startup or small business. And the earlier you get in the more risk that is usually present. If a young company goes out of business, your ownership interest could lose all value. You may have limited voting power to direct the company due to dilution over time. You may also have to wait about five to seven years (if ever) for an exit via acquisition, IPO, etc. Because early-stage companies are still in the process of perfecting their products, services, and business model, nothing is guaranteed. That's why startups should only be part of a more balanced, overall investment portfolio.
When will I get my investment back?
This offering is a SAFE (Simple Agreement for Future Equity), not a share of stock. A SAFE is not a loan and does not pay interest or dividends, and it does not represent an ownership stake in Finlete, Inc. (the “Company”) unless and until it converts into equity. Your SAFE will convert into shares of the Company's stock upon a future triggering event – most commonly a qualified equity financing, but also potentially a change of control or a dissolution of the Company. There is no fixed timeline for when (or whether) a triggering event will occur, and the Company is under no obligation to raise additional equity financing or to be acquired. Because the Company is not publicly traded, any shares you eventually receive upon conversion cannot be easily traded or sold. Your return on this investment, if any, will depend on the Company's future success and a future liquidity event (such as an acquisition or IPO), or the value of shares if a trading market develops. There is no guarantee your SAFE will ever convert, that any shares issued will have value, or that you will get your investment back.
Can I sell my shares?
Shares sold via Regulation Crowdfunding offerings have a one-year lockup period before those shares can be sold under certain conditions. Exceptions to limitations on selling shares during the one-year lockup period: In the event of death, divorce, or similar circumstance, shares can be transferred to: (1) The company that issued the securities; (2) An accredited investor; (3) A family member (child, stepchild, grandchild, parent, stepparent, grandparent, spouse or equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships).
What happens if a company does not reach their funding target?
If a company does not reach their minimum funding target, all funds will be returned to the investors after the close of the offering.
How can I learn more about a company's offering?
All available disclosure information can be found on the offering pages for our Regulation Crowdfunding offering.
What if I change my mind about investing?
You can cancel your investment at any time, for any reason, until 48 hours prior to a closing occurring. If you've already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To submit a request to cancel your investment please email:
info@dealmakersecurities.com.
How do I keep up with how the company is doing?
At a minimum, the company will be filing with the SEC and posting on its website an annual report, along with certified financial statements. Those should be available 120 days after the fiscal year end. If the company meets a reporting exception, or eventually has to file more reported information to the SEC, the reporting described above may end. If these reports end, you may not continually have current financial information about the company.
What relationship does the company have with DealMaker Securities?
Once an offering ends, the company may continue its relationship with DealMaker Securities for additional offerings in the future. DealMaker Securities' affiliates may also provide ongoing services to the company. There is no guarantee any services will continue after the offering ends.
What is the company's implied valuation?
This offering is being made pursuant to a SAFE (Simple Agreement for Future Equity) with an $18,000,000 post-money valuation cap. The valuation cap is not a valuation of the Company – it does not represent an appraisal, a negotiated price, or a statement by the Company as to what it is worth. It simply sets the maximum price at which your SAFE will convert into equity in a future qualified financing. If the Company raises a future priced equity round at a valuation higher than $18,000,000 post-money, your SAFE will convert as though the Company were valued at $18,000,000 (subject to the SAFE's conversion mechanics), giving you a proportionally larger stake than new investors in that round. If a future round prices below $18,000,000, the cap has no effect and your SAFE converts on the terms of that round. The Company has not obtained a third-party valuation and makes no representation as to its actual fair market value.