Ballerz is a cutting-edge funding portal designed to streamline the startup investment process—but with a twist.

Unlike traditional platforms that prioritize attracting startups, Ballerz puts investors first.Most funding portals operate under a simple premise: the more startups on the platform, the more revenue they generate. This results in a marketplace flooded with companies, often at the expense of investor experience. Ballerz flips this model on its head.

Our philosophy is clear: the more investors we have, the greater our ability to attract top-tier startups. By focusing on investor success, we create an ecosystem where high-quality startups naturally seek funding, ensuring better opportunities for those looking to maximize returns.

Ballerz is the Tinder of venture capital investing... Simply put, we match investors to quality startup opportunities that have high-growth potential.

Ballerz is the ultimate cloud-based funding platform built for high-growth companies looking to raise capital and for investors seeking prime deals.

For startups—aka issuers—our powerful backend transforms mountains of paperwork into a seamless, compliant, and secure digital experience, accessible anytime, anywhere.

For investors like you, our intuitive platform makes buying securities as effortless as ordering on amazon—all you need is an email and an online banking account.

Ballerz offers SEC regulated crowdfunding offerings through one of our many SEC regulated funding partners. Regulated offerings allow investors to invest in startups and early-growth companies. This is different from helping a company raise money on Kickstarter; with regulated crowdfunding offerings, you aren’t buying products or merchandise – you are buying a piece of a company and helping it grow.

The top 4 reasons to invest in private companies are:

1. Potential for High Returns: Private equity investments such as venture capital / Pre_IPO investing have the potential to generate substantial returns over the long term. Since Incubators like VCs invest in privately-held companies that are not traded on public stock exchanges, investors may benefit from the growth and success of these companies before they go public or get acquired. Pr-IPO investments typically have a longer investment horizon compared to public equities, allowing for value creation and significant appreciation over time.

2. Diversification and Innovation: Private equity investing like Pre_IPO investing provides an opportunity to diversify a portfolio beyond traditional asset classes like stocks and bonds. Startups backed by private equity represent a diverse range of industries, technologies, and market segments. Investing in private equity allows investors to gain exposure to cutting-edge innovations and emergingtrends that have the potential to reshape industries and create new markets.

3. Access to Exclusive, Early-Stage Opportunities: Incubators like Ballerz offers access to early-stage investment opportunities that are not available in public markets. By investing in venture capital funds or directly in startups, investors can participate in the early stages of companies with disruptive potential. These investments provide the opportunity to support entrepreneurial talent, contribute to innovation, and potentiallybenefit from significant value creation as startups mature and achieve milestones.

4. Active Involvement and Value Creation: Venture capital investors often play an active role in supporting portfolio companies through mentorship, strategic guidance, and operational assistance. Unlike passive investing in public markets, incubators have a hands-on approach to help startups navigate challenges, accelerate growth, and capitalize on market opportunities. This active involvement can create value for both investors and entrepreneurs, leading to successful outcomes for all stakeholders involved.

Every investor on Ballerz follows three core steps (with a possible fourth, depending on the deal):

• Complete Your Investor Questionnaire – Tell us a bit about yourself right in the portal.

• Sign & Submit Your Subscription Agreement – Lock in your investment terms with just a few clicks.

• Fund Your Investment – Pay securely and effortlessly.

Note: Submit Additional Docs (if required) – Some deals or issuers may ask for extra verification.Once you’re done, the company will review and formally accept your investment before delivering your securities.

Pro tip: Double-check your email before you start to ensure a smooth process.

Ballerz is proud to be the only platform that truly democratizes access to startup investing. Now thanks to Ballerz, anyone over the age of 18 can get into the big game of venture capital investing.

But it is important to note that Ballerz in only a fintech platform and education portal, Ballerz does not give investing advice of any kind. Ballerz is not regulated by the SEC as an investment advisor. Please read disclaimer in full.

As Ballerz is simply the platform used by companies to complete capital raises, we are unable to advise on if this investment is a good opportunity or provide legal advice. Ballerz vets all deals on the platform and seeks to only add the best available but all investing opportunities are the sole responsibility of the investors.

If you have any queries relating to the company you are investing in (e.g. about the company, when the company is going public, when you will receive your investment certificates), please send these to the company directly.

Investing in startups and small businesses isn’t just exciting—it’s also inherently risky.

Early-stage companies face amplified challenges, from execution hurdles to strategy pivots.Before making a move, do your homework.

Dive into the company’s Form C to understand the business, its risks, and the opportunity at hand.

Note: Reality Check... Your investment isn’t guaranteed to grow. If a company shuts down, your ownership stake could become worthless. Plus, startup investments are illiquid, meaning you might wait 5 to 7 years—or longer—for a potential exit via acquisition or IPO.

Title III Crowdfunding, also known as Regulation Crowdfunding (Reg CF), is indeed specific to the U.S. market. It enables companies to raise funds through online platforms by aggregating a maximum of $5 million within a 12-month period.

One significant aspect of Reg CF is that both accredited and non-accredited investors can participate in financing offerings on crowdfunding platforms. Accredited investors face no specific limitations on their investments. However, non-accredited investors are subject to certain restrictions governing the total amount they can invest across all Regulation Crowdfunding offerings within a 12-month period.

These restrictions for non-accredited investors are put in place to protect them from overexposure to high-risk investments, as crowdfunding offerings, particularly those involving startups and small businesses, can carry significant risk. By imposing limits on non-accredited investors, regulators aim to strike a balance between providing access to investment opportunities and safeguarding investors from potential losses.

Reg CF allows a wide range of investors to invest in startup and small business crowdfunding offerings.

In the United States, both accredited and non-accredited investors are eligible to participate in these offerings. However, there are certain limitations and rules that apply, which are designed to protect less experienced investors from taking on too much financial risk. 

Are International Investors eligible to participate in Reg CF raises?International investors looking to diversify their portfolios and tap into the innovative potential of small and emerging companies in the United States may consider investing in Regulation Crowdfunding (Reg CF) offerings. 

Before diving into Reg CF investments, it's crucial for international investors to understand the rules and regulations set forth by the U.S. Securities and Exchange Commission (SEC). These regulations are designed to protect investors and ensure a fair and transparent fundraising process for companies.Key points for international investors to consider include:

• Eligibility: While Reg CF is open to international investors, each country may have its own regulations regarding outbound investments. Investors should consult with local financial advisors or legal counsel to ensure compliance with their home country's laws.

• Investment Limits: The SEC has established investment limits based on an investor's net worth and annual income, which apply to all investors, domestic and international. These limits determine how much an individual can invest across all Reg CF offerings in a 12-month period.

• Due Diligence: As with any investment, conducting thorough due diligence is essential. This includes reviewing the company's offering statement on Form C, which provides detailed information about the business, its financial condition, and the terms of the offerings.

• Tax Considerations: International investors should be aware of any tax obligations that may arise from investing in U.S. securities, including potential withholding taxes. It's advisable to consult with a tax professional to understand the implications in both the U.S. and the investor's home country.

• Currency Risk: Investments in Reg CF offerings are denominated in U.S. dollars, so international investors should consider the currency exchange rate risk and the potential impact on their investment returns.

Only accredited investors from Canada are eligible to invest in Reg CF raises due to the current laws for Canadian retail investors, which do not allow their participation in such offerings. Canadian investors must meet the criteria for accredited investors as defined by their local jurisdiction and the SEC.

What is an accredited investor?

An accredited investor, in the context of a natural person, includes anyone who:

• Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

• Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

There are other categories of accredited investors, including certain institutions and entities. The full definition can be found on the SEC's website.

Regulation D, or "Reg D," is a set of rules promulgated by the U.S. Securities and Exchange Commission (SEC) under the Securities Act of 1933. It provides exemptions from the registration requirements typically required for public offerings of securities, making it easier for companies to raise capital.

Here are the key components:

1. Regulation D Offerings: Reg D consists of several rules, primarily Rules 504, 505, and 506, each catering to different types of securities offerings:

• Rule 504: Allows for the sale of up to $10 million in securities within a 12-month period. It’s often used by smaller companies.

• Rule 505: Previously allowed for the sale of up to $5 million in securities within a 12-month period, but it was eliminated in 2017.

• Rule 506: Divided into two parts:

• Rule 506(b): Allows for unlimited fundraising, but limits the offering to accredited investors and up to 35 non-accredited investors, with certain disclosure requirements.

• Rule 506(c): Allows for general solicitation and advertising, but all investors must be accredited.

2. Accredited Investors: Regulation D offerings can be made to accredited investors (individuals or entities meeting specific income or net worth thresholds) and, in some cases, to non-accredited investors, depending on the specific rule.

3. Exemptions from Registration: By complying with Reg D, companies can avoid the extensive registration process required for public offerings, which can save time and costs.

4. Disclosure Requirements: While Reg D provides exemptions from registration, companies must still provide certain disclosures to investors, particularly under Rule 506(b).

Our best advice is to use our third-party verification letterInstead of uploading personal documents, we recommend seeking one of these professionals to review your personal documents and complete this standard template letter:

• CPA

• Accountant

• Lawyer

• Investment Advisor

• Broker-Dealer

Accredited investor criteria for individual:

• Has a net worth higher than $1,000,000 either individually or with your spouse, not including your primary residence 

• Has an annual income higher than $200,000 for individuals

• or $300,000 as joint income in the last 2 years and expect to earn more than that amount in this given year.

• Is an investment professional in good standing, who holds the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)

  Accredited investor criteria for an entity:

• An entity owning investments in excess of $5 million

• An entity where all equity owners are accredited investors

  The following entities with assets in excess of $5 million:

• Trusts

• corporations

• partnerships

• LLCs

• 501(c)(3) organizations

• employee benefit plans“family office” and any “family client” of that office

  Investment advisers (SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers

  Financial entities, such as:

• a bank

• savings and loan association

• insurance company

• registered investment company

• business development company, or small business investment company, or rural business investment company

Regulation S, established by the U.S. Securities and Exchange Commission (SEC), indeed governs securities offerings to offshore investors. It provides a framework for companies to offer and sell securities outside the United States without registering the offering with the SEC, under certain conditions. One of the key conditions is that the securities must be exclusively offered and sold outside of the United States, meaning that U.S. investors cannot participate in the offerings covered by Regulation S.

If a securities offering targets both foreign and domestic investors (U.S. investors), it would not qualify for the exemptions provided by Regulation S. In such cases, the offering would need to be registered with the SEC, subject to the requirements and regulations applicable to domestic offerings.

Regulation S serves to facilitate international capital flows while ensuring appropriate investor protections and regulatory oversight. It delineates the circumstances under which U.S. securities laws apply to offerings made outside the United States, providing clarity for companies engaging in cross-border securities transactions.

Regulation A is an exemption from registration for public offerings.

Regulation A has two offering tiers:

• Tier 1, for offerings of up to $20 million in a 12-month period; and

• Tier 2, for offerings of up to $75 million in a 12-month period. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier 1 or Tier 2.

There are certain basic requirements applicable to both Tier 1 and Tier 2 offerings, including company eligibility requirements, bad actor disqualification provisions, disclosure, and other matters.

Additional requirements apply to Tier 2 offerings, including limitations on the amount of money a non-accredited investor may invest in a Tier 2 offering, requirements for audited financial statements and the filing of ongoing reports. Issuers in Tier 2 offerings are not required to register or qualify their offerings with state securities regulators.

Indeed, equity rounds, also known as priced rounds, are a common method for startups to raise funds by selling ownership shares in the company to investors. Unlike convertible notes or SAFEs, which are debt or convertible equity instruments, respectively, equity rounds directly determine the valuation of the company and involve the sale of equity in exchange for investment.

Here are some key elements typically found in the legal documentation of an equity round:

• Term Sheet: The term sheet outlines the key terms and conditions of the investment, including the valuation of the company, the amount of investment, the percentage of equity being offered to investors, and any specific rights or preferences attached to the shares being issued.

• Valuation: The valuation of the company is determined through negotiations between the startup and the investors. This valuation serves as the basis for determining the price per share and the overall investment amount.

• Shares: Investors contribute funds and receive shares of stock in return. The number of shares issued to each investor is determined based on the valuation of the company and the amount of investment made.

• Dilution: Equity rounds result in dilution for existing shareholders, including founders and early investors, as new shares are issued to incoming investors. Dilution reduces the ownership percentage of existing shareholders in the company.

• Legal Documentation: Equity rounds typically involve the preparation and execution of various legal documents, including a stock purchase agreement, investor rights agreement, and articles of incorporation or amendment. These documents outline the rights, obligations, and restrictions associated with the investment and the ownership of shares.

• Investor Rights: Investors may negotiate for certain rights and preferences as part of the investment, such as board representation, anti-dilution protection, liquidation preferences, and voting rights. These rights are documented in the investor rights agreement and can have significant implications for the governance and future financing of the company.

• Due Diligence: Equity rounds often require thorough due diligence by both the startup and the investors to assess the financial, legal, and operational aspects of the company. This process helps to identify any potential risks or issues that may affect the investment decision.

A SAFE, or Simple Agreement for Future Equity, is an investment contract used in early-stage financing rounds, particularly in startup fundraising. It's a relatively new instrument compared to traditional equity financing options like convertible notes or preferred stock.

A SAFE allows an investor to make a cash investment in a company with the expectation of receiving equity in the company at a later date, typically during a future priced equity round or upon a specific liquidity event, such as an acquisition or IPO. However, unlike a convertible note, a SAFE does not accrue interest or have a maturity date.

Key features of a SAFE:

• Future Equity: The investor receives the right to obtain equity in the company at a future financing round or liquidity event, typically at a discount or with a valuation cap negotiated at the time of the SAFE agreement.

• Simplicity: SAFEs are designed to be simpler and easier to understand compared to traditional equity financing documents, reducing legal complexity and negotiation time.

• No Interest or Maturity Date: Unlike convertible notes, SAFEs do not accrue interest, nor do they have a maturity date by which the company must repay the investment if a qualifying event hasn't occurred.

• Investor Protections: Depending on the terms negotiated, SAFEs may include investor-friendly provisions such as valuation caps, discount rates, and pro-rata rights in future financing rounds.

• Lack of Voting Rights and Dividends: Typically, SAFEs do not grant investors voting rights or entitlement to dividends until the conversion event occurs.