+What is Equity crowdfunding?
Equity crowdfunding is a type of crowdfunding where the investor receives ownership (i.e. “equity”) in the company in exchange for the investment. Equity crowdfunding is different from donation-based crowdfunding sites, like Indiegogo, where backers only receive a product or service gift from the company, not company ownership. Most recently, the term Equity Crowdfunding has become directly associated with Title III of the JOBS Act, wherein a company can raise up to $1M from accredited* and non-accredited investors.
*Accredited investors are wealthy people: typically making over $200,000 per year ($300,000 if joint with spouse) or having over $1 million in assets, minus their home.
+What is the JOBS Act?
The Jumpstart Our Business Startups Act or JOBS Act, is a law intended to encourage funding of United States small businesses by easing various securities regulations. It was signed into law by President Obama on April 5, 2012. The term "The JOBS Act" is also sometimes used informally to refer to just Titles II and III of the legislation, which are the two most important pieces to the crowdfunding and startup community. Title II passed on September 23, 2013. Title III passed on May 16, 2016. Title IV passed on June 19, 2015.
+Who can invest?
Any individual 18 years and older can invest, as well as any eligible entity.
+How will Airing use these funds?
Airing will use these funds to continue development of the prototype. Funds raised beyond the minimum goal will be used to conduct ten tests with devices that are tethered to a battery in a pocket, to file various patent applications for technology invented during the process, and to create reference designs for batteries and electronics to be used in the Airing device.
+Why equity now?
A large number of Airing’s followers and contributors to our rewards-based crowdfunding campaign on Indiegogo have inquired about the possibility of making an equity investment in Airing. Until recently, this option would have only been available to accredited investors according to existing regulations. In the past year, however, this has changed. New provisions, known as Regulation Crowdfunding (Title III), have been adopted to allow smaller investors to buy shares in private companies on the same basis that had previously been limited to accredited high net worth investors.
+What about contributors on Indiegogo?
Indiegogo is a donation based crowdfunding site and all our contributors will receive what they are promised. Contributors who have purchased the perks will receive the promised Airing devices as soon as Airing becomes available.
Wefunder is the largest Regulation Crowdfunding portal by every measure - by experience, by dollars funded, successful offerings, number of investors, equity, or debt. We are pleased to be working with the team at Wefunder to use innovative financing for an innovative solution to a major health problem.
+What is the minimum investment?
The minimum investment for the Airing campaign is $250.
+Is there a maximum investment?
The short answer is that everyone can invest at least $2,200. The SEC has guidelines for investors wishing to make larger investments. A larger investor may have to certify that they are an accredited investor. Potential accredited investors in Airing may have additional investment vehicles available to them. If you are interested in making a larger investment, please email us at email@example.com for more information.
+Why invest in startups?
It shouldn’t be to make a lot of money. This isn't the stock market. Startups are much riskier and are likely to fail. Everyone has their personal motivations for investing in startups but ours is to support founders we believe in, pursuing a vision we care about, with a good chance of earning a return should that vision transform into reality.
+How was Airing's valuation determined?
Market demand often determines the valuation. Typically, before a company fundraises on Wefunder, at least one professional investor has invested in the company, as is the case with Airing. Professional investors are much more likely to understand the current market value of startups. This valuation shifts with time, depending on the amount of capital chasing startups. Right now, early-stage high growth startups such as Airing are often valued at $3 to $20 million for their first financing. Lifestyle businesses are valued at less. Companies that have raised several rounds of financing and are further along are worth far more.
+Can non-U.S. Citizens invest?
Yes, unless the law of your country prevents you from investing.
+If I cancel my investment, will I get a full refund?
Yes. You can change your mind at any time before the fundraiser closes. Even if you've signed the investment contract, you'll receive a full refund, for any reason. You'll receive a "5 days left" notice when a fundraiser is about to close.