Joining RaiseWise.us is free for both issuers and investors. We charge a percentage of the amount raised as a platform fee once the issuer has reached its funding goal. Payment processing fees also apply and are paid directly to the payment service providers, as described in the issuer's campaign. Investors are not charged any fee when they invest in the offerings listed on our platform.

Money laundering is the process by which criminals conceal the existence and origin of illegal funds so that they appear legitimate. Money laundering usually happens in three stages: placement, layering and integration. Crowdfunding portals and other financial institutions can, at some point in the process, be exploited by criminals to carry out money-laundering activities. Placement is the initial introduction of illegal funds into the financial system, usually in the form of cash or cash equivalents (money orders, traveler's checks and account statements). Placement can occur when a new account is opened with an initial deposit, through later payments and deposits, or through third-party receipts. Layering is the concealment or distancing of illegal funds from their source by creating a transaction or a series of complex transactions. Layering can involve multiple and frequent account transfers, changes of ownership or changes of address. Integration is the final step, bringing "clean" money back into the economy. At this point, the funds are likely to appear legitimate and to have been paid out lawfully. Criminals often use sophisticated methods to cover the tracks of their crimes, just as terrorists seek to hide their activities among legitimate businesses to finance and carry out their acts. Terrorists and other criminals increasingly use crowdfunding portals and brokerage firms to conceal the source of their funds. Money laundering can also include activities where individuals and companies seek to hide their profits from tax authorities.

A convertible note is an unsecured loan that converts into equity at some point in the future. Convertible notes have historically been the most popular form of seed investment in startups, although SAFEs are becoming the most common. Convertible notes are also useful because they postpone the difficult task of estimating how much the startup is worth. The number of shares you receive is determined during the next qualified financing round, when venture capitalists set the price of the preferred shares. Then, using the valuation cap, discount and interest rate, the note converts into shares at a lower price than the venture capitalists paid, because you invested earlier. If the startup does not raise a new financing round, the note reaches its maturity date, usually within 18 to 24 months. Convertible notes, however, are rarely repaid in cash. Instead, the note usually converts into equity at a predetermined target price. The discount and interest rate have a relatively small impact on future returns. The most important term to focus on, which can have a major impact on your future shares, is the valuation cap, depending on how "hot" the startup is. Q: What is a revenue-sharing or profit-sharing note? It is a loan that is repaid through a share of the company's revenue. Key terms of this note include: • Gross or net revenue. Net revenue excludes returns or shipping costs. • Revenue percentage. The percentage of revenue that is shared. • Repayment amount. Usually 1.5x to 3.0x, this is the maximum amount you can be repaid. • Quarterly or annual payments. Companies choose to make annual or quarterly payments. • Payment deferral. By default, companies can miss a payment without being in default. • Collateral. Some loans may be secured by the company's assets.

RaiseWise.us promissory notes work as a simple form of debt crowdfunding. They can be a powerful crowdfunding tool when combined with investor perks. They can also be repaid by the company at any time. Key terms of this note include: • Interest rate. The annual interest rate. • Maturity date. How many years before the loan must be repaid? • Quarterly or annual payments. Companies can choose to make quarterly or annual payments. • Grace period. By default, loans start up to 30 days after the deadline of the crowdfunding round. Some companies may delay the start of the loan to a later date, for example when they plan to open their business. • Payment deferral. By default, companies may miss a payment without penalty. This gives companies some room to recover if they have a bad year. • Collateral. Some loans may be secured by the company's assets. • Personal guarantee. Some loans may have an individual who personally guarantees the payments. • Subordination. Some loans may be subordinated to a larger lender.

When you invest, your funds are held in an escrow account. As a funding portal, RaiseWise.us is not permitted to hold investor funds. All investments are placed in an escrow account with a third-party provider offering this service. Funds are transferred to the company only after the funding goal has been reached and the offering has closed. All fees related to our service are then paid to RaiseWise USA, Inc. through our third-party escrow service, once the funding goal has been reached and the offering has closed. If the campaign does not succeed, your investment is returned to you.

All issuers using regulated crowdfunding offerings must complete a disclosure form (Form C) before launching their campaign and make it available to investors. On RaiseWise.us, issuers can upload this form in their company information, under the "Manage documents" tab. Potential investors can request access to the form, which must include, among other things: • The name and legal status of the issuer; • The names of the issuer's owners, directors and officers; • A description of the business and the intended use of the funds raised; • The number of employees; • The factors that make the investment risky, or the risks associated with the securities; • The target amount, the offering deadline, and whether the issuer will accept investments above the target amount; • A description of the investment process; • A description of the issuer's current ownership and capital structure; • The compensation paid to RaiseWise.us; • The issuer's debts; • Other capital-raising efforts carried out by the issuer during the past three years; • Amounts paid to insiders through previous capital raises; • Financial statements.

RaiseWise USA, Inc. (RaiseWise.us) is an online funding portal for Regulation Crowdfunding offerings, registered with the U.S. Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).

To start raising funds, sign up and log in, create your company profile by following our simple process, and make sure all the required information is available in your account. RaiseWise.us funding options are predefined. With fixed ("all or nothing") funding, the issuer receives the capital only if the campaign reaches its funding goal. If the goal is not reached, the amount raised is returned to investors promptly and without fees. Another available option is to keep the capital raised: "keep what you raise". Make sure you upload your photo, your company details, the details of your campaign, a photo or video, and documents such as: • Business plan • Term sheet • Articles of incorporation • Investment agreement Individual investors must complete the investor know-your-customer (KYC) and verification documents and upload them to the platform for approval before investing in the offerings listed on RaiseWise.us.

This form of crowdfunding is often used by early-stage companies to raise seed funding. Equity crowdfunding is different from donation-based or reward-based crowdfunding, which offer benefits to donors for charitable, social or religious contributions and are not an investment in a company's capital. Equity investing can be attractive to non-accredited investors for several reasons. First, there is the potential for a strong return if the startup you invested in eventually completes a successful IPO. Once the company is public, you can sell your shares and recover the capital you initially invested, along with any profit. If you are lucky enough to invest in a company that becomes the next Google, the gain can be enormous. In addition, equity crowdfunding does not require a large amount of money to get started. Depending on the size of the funding round the startup is seeking, you may be able to invest as little as $100. This effectively levels the playing field between accredited and non-accredited investors. The two main drawbacks of equity investing are the inherent risk and the time horizon. There is no guarantee that a startup will succeed, and if the company fails, your investment could become worthless. Even if the company succeeds, it may take years before you can sell your shares.

Debt (or lending) crowdfunding is when a group of people or investors lends money to an individual or a company, with the understanding that it will be repaid with interest.

There is no legal minimum amount for a crowdfunding campaign. Under Regulation Crowdfunding, a company can raise up to $5 million in a 12-month period.

Outside of the platform, issuers may only advertise limited information about their offering, such as: • The amount of securities offered; • The nature of the securities; • The price of the securities; and • The closing date of the offering period. An issuer may not state or imply that the SEC has approved its offering. As long as the issuer follows these rules, it can promote its offering anywhere on the internet.

As a registered funding portal, we review every project before approving it on the RaiseWise.us portal, to make sure that all information presented to the public is fair and not misleading. We carry out due diligence on the issuer, its legal structure and its management by reviewing the information provided on our platform and by using a third-party provider. We also verify the evidence supporting any claims made by the company, such as market size, contracts and partnerships, to ensure that the information provided is accurate. The process can take days or weeks, sometimes longer if the company or the offering is complex. To keep the process open and transparent for our members, the due diligence reports and analyses issued by the RaiseWise.us team are available as part of the approval process. They are also regularly updated as we improve our due diligence process. In line with our company values, the guiding principles of this process are: • Integrity: acting with integrity and treating our investors and issuers fairly; • Diligence: acting with professionalism, care and diligence; and • Transparency: always being open and transparent with our clients. • Please see our Due Diligence page.

RaiseWise.us keeps records of funding campaigns and related documentation digitally and securely on its own platform. RaiseWise retains these documents and data in a way that allows a prompt response to the SEC, FINRA or any other competent authority or court, in accordance with applicable law. Read more in our Privacy Policy.