Advertising your raise

To stay within the law, when sending people information about your raise, don’t include any terms of your offering; instead, direct people to your Invown pitch page. Avoid hyperbole and misleading info.

There are laws regarding advertising your raise, both on and off Invown’s marketplace, to ensure that all prospective investors get the same information about your offering. Your Invown pitch page must be the single source of truth for your offering.

When can you start advertising?

You can start advertising your offering right away using the “testing the waters” provision in the law. So as soon as your pitch on Invown is ready, you can start publicizing it even before you file your Form C with the SEC.

In addition, you must retain records of all communications about the offering, which you will be required to file Form C. To stay within the law, you must include the following disclosures in any communications about the offering.

  • We are ‘testing the waters’ to gauge investor interest in an offering under Regulation Crowdfunding.
  • No money or other consideration is being solicited. If sent, it will not be accepted.
  • No offer to buy securities will be accepted.
  • No part of the purchase price will be accepted until Form C is filed and only through Invown’s platform.
  • Any indication of interest involves no obligation or commitment of any kind.

If your communication is in a character-limited medium such as Twitter, you can instead use the following disclosure and link:

See here for important legal disclosures.

It is essential to avoid hyperbole and never to make statements that are not factual.

What can you include in your communications?

Use “non-terms” communications or ads that do not include any terms of your offering.

The point of your communication should be to convey that you are raising money for a deal, and details are available on Invown — link to your Invown pitch. By law, all of your advertisements must include a link to your pitch on Invown.

It is permissible to talk about your company, mission, and any objective metrics of past success and growth.

In all communication, make sure to avoid hyperbole, misleading statements, and any terms of your offering.

The following are examples of “terms of your offering” that you must not use or convey in private communication or ads about your pitch:

  • The number of securities you’re offering
  • The type or nature of the securities (i.e., debt or equity, common or preferred, etc.)
  • The price of the securities
  • The closing date of the offering period
  • Your planned use of the funds
  • Your progress towards meeting your funding target

If you are unclear about what you can say in private communications or advertisements about your offering, please reach out to us, and we will help guide you or talk to your legal counsel.