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.