Gee Funding, Inc., is a funding portal registered with Security Exchange Commission (SEC file #: 7-132); a pending member of Financial Industry Regulatory Authority (FINRA CRD #: 290990) where Regulation Crowdfunding offerings (Equity, Debt, Profit Share, and Convertible Note) securities will be made through the possibilities of Jobs Act via this website (GeeFunding.com)
As issuer or investor, you do not pay any money to join Gee Funding. It’s Free to Join!
We charge 7% Gee Funding platform fee to the issuer on fully funded raise. WePay payment processing fees also apply and are payable directly to the service providers upon the completion of the funding campaign by the issuer. We do not charge investor any amount when investing on any of the investment opportunities found on our platform. Read more about our fee.
To start raising funds. All you must do is SIGNUP/LOGIN, create your company profile by following the simple process, and make sure all info pertain to your account are entered accurately.
Gee Funding platform funding option is preset at FIXED. Fixed or inelastic funding enable the issuer received funds only when the raise is successful, and you were able to reach your target goal.
However, when the funding target goal is not reached and unsuccessful, then the unsuccessful amount generated is returned to the investors without deduction of fees.
Ensure you have uploaded your personal photo, your business details, the funding campaign details, image or video, and the deal documents.
We require issuer to upload their deal documents.
+ Business Plan
+ Term Sheet
+ SEC Form-C
+ Article of Incorporation
+ Investment Agreement.
Before submitting the funding campaign for review/approval, make sure you have clicked on the SHOW ME WHAT LEFT TO DO to ensure you’ve completed all things required of you. Or SAVE the draft to enable you return and complete later. When you’re ready to submit the campaign for Gee Funding review/approval. Click SUBMIT.
Gee Funding offer its portal members Investor Accreditation, including investor verification document accessible from the individual investor profile page. The Investor 'Acknowledgement' and 'Investors Verification' document in .pdf file are available for download at the Investor account dashboard.
The individual investor shall execute both the Investor Acknowledgement and Investor Verification document, and re-upload the document back to the platform for approval prior to participating as accredited investor in the investment opportunity offerings listed here at Gee funding.
Money Laundering is the process by which a criminal conceals the existence, source or nature of illegally derived funds to make them appear legitimate. Money laundering typically occurs in three stages: placement, layering and integration. Crowdfunding platform companies and other financial institution are at any point in the process susceptible to being used by criminals to carry out money laundering activities.
Criminals often employ sophisticated methods of disguising the proceeds of their crimes, just as terrorists seek to funnel the proceeds of ostensibly legitimate businesses to fund and execute terrorist plots. Terrorists and other criminals are increasingly using the facilities of securities firms and crowdfunding companies to conceal the source of their funds. The concept of money laundering can also include the activities of individuals and businesses seeking to conceal their earnings from the Internal Revenue Service and state and local taxing authorities. READ MORE About Anti-Money Laundering!
Equity crowdfunding is the type of crowdfunding with which Title III of the JOBS Act is primarily concerned. With this type of investment, multiple investors pool money into a specific startup in exchange for equity shares. This kind of crowdfunding is most often used by early-stage companies to raise seed funding.
Equity crowdfunding is not the same as donation-based crowdfunding or rewards-based crowdfunding which gives perk rewards to donors for just-cause, charitable, or religious donations those are not applicable to investments as equity.
Equity investments may be attractive to non-accredited investors for a couple of reasons. First, there’s the potential for a solid return if the startup you’re investing in eventually has a successful IPO. Once the company goes public, you can then sell your equity shares and recover your initial investment, along with any profits. If you happen to luck out and invest in a startup that ends up being the next Google, the payoff could be huge.
Aside from that, equity crowdfunding doesn’t require a substantial amount of money to get started. Depending on how large the funding round is that a startup is seeking, you may be able to invest as little as $100. That effectively levels the playing field between accredited and non-accredited investors. (For more, see: Understand the SEC Rules on Equity Crowdfunding.)
The two biggest drawbacks associated with equity investments are their inherent risk and the timeframe. There’s no guarantee a new startup will succeed, and if the company fails, your equity shares would be worthless. If the company does take off, it may be years before you can sell your shares. Data from CrunchBase has shown that the average time to go public is 8.25 years, which is something you would need to factor into your exit strategy.
SAFE (Simple Agreement for Future Equity)
A SAFE is an agreement that grants the holder the right to equity at a later date, typically when venture capitalists lead a 'Series A' financing.
SAFE is a short, 5-page investment document that is intended to be simple to understand and convenient to administer. It’s not a debt instrument but rather investments via SAFE show up on the company’s capitalization table (cap table) like other convertible securities (ie – warrants, options). SAFE provides investors the opportunity to convert their investment to equity at a point in the future when a Preferred round equity funding is raised.
SAFE has many similar features to the well-established convertible notes, such as provisions for early exit (change of control), economic benefits such as the Discount and protection features such as the Valuation Caps. But one thing SAFE doesn’t have is a maturity date (remember, it’s not a debt instrument), so there is a possibility that it never converts to equity and there’s nothing in the terms that call for the investment to be repaid to the investor.
From the Startup’s Perspective:
From the Investor’s Perspective:
A convertible note is an unsecured loan that converts to stock at some point in the future. They are one the most popular forms of seed-stage startup investing because of their history, although the SAFE is rapidly becoming more prevalent.
Convertible notes are also useful because they delay the difficult task of figuring out how much the startup is worth. The number of shares you receive is determined at the next qualified financing (typically $1 million), when venture capitalists set the price for preferred stock. Then, calculated by using the Valuation Cap, Discount Rate, and Interest Rate, your loan converts into shares at a lower price than the venture capitalists paid, since you invested earlier.
If the startup does not raise another round of funding, the note becomes due at the maturity date, typically in 18-24 months. Convertible notes, however, are rarely repaid in cash. Instead, the note usually converts to equity at a pre-set target price.
The discount and interest rates have a relatively minor impact on future returns. The most important term to focus on – which can greatly impact the price of your future shares – is the Valuation Cap. This is usually set between $3 to $20 million, depending on how "hot" the startup is.
The difference between SAFE and a Convertible Note.
This is a promissory note that is paid back from a share of the revenues of the business.
Important terms in this note include:
Secured. Some loans may be secured with all property of the business.
The GeeFunding Promissory Note is good for debt fundraises that don't require much complexity. It can be powerful for crowdfunding when combined with the Investor Perk Agreement. It may also be paid back by the company at any time.
Important terms in this note include:
Subordination. Some loans are subordinate to a major bank lender.
Debt crowdfunding (or loan) is when a group of people or investors lend money to an individual or company with the understanding that the loan will be repaid with interest.
Gee Funding platform has $10,000 preset minimal investment amount. Meaning you cannot raise fund below $10,000 our system will not allow it.
Also, the platform has a preset maximum amount of $1,070,000. Our system will not allow you raise money over $1,07M.
When you invest, your investment fund is transferred to an escrow account. Gee Funding is prohibited by SEC and FINRA regulation from touching or holding your money. Regulation funding portal cannot hold funds.
All investments are placed in a third-party escrow account service provider. Funds are transferred to the business owner or issuer only after the fundraising target has been met or closed.
And all fees related to our service are then payable to Gee Funding, Inc., through our third-party escrow provider after the fully funded or partially funded campaign closed. However, if the funding campaign is unsuccessful, your investment will be refunded to you.
Regulation Crowdfunding campaign is very different from conducting a rewards-based campaign, in (Reg. CF) the SEC and FINRA are very strict when it comes to you talking about your fund raising. The SEC is very clear that you cannot make any reference or any indication, posts or public references of the offering until it is live. While you can continue normal advertisement of your company or service, the SEC deems any public posts or communication about the offering to be a direct violation of the regulation.
Under Reg CF, issuers who are selling their securities on a registered portal (Gee Funding, Inc.), are restricted on how they can advertise their offerings and on the content of any information distributed to the public. Specifically, under Rule 200 of Reg CF, an issuer is explicitly prohibited from advertising the terms of their offering except for a notice that directs potential investors to the registered portal (GeeFunding.com). Additionally, the notice can only include the following information:
To break it down, it is:
Also, issuer cannot say or indicate on their advertisement that FINRA or SEC has approved or endorsed the specified funding campaign. That is a no, no.
As long as an issuer sticks to the points mentioned above, they can essentially broadcast their offering anywhere on the internet.
Read more about the Rules Governing Advertising and General Solicitation in our Policy page.
Every Issuer using Regulation Crowdfunding (Reg. CF) offerings are required to file a Form-C with the SEC prior to the fund raising and also make it available to the investors. Here at Gee Funding all insuer or company can upload the Form C onto their company 'DEAL Documents' section on our platform; potential investors can request access to the form c, which is required to contain various disclosures, including:
As a platform registered by Security Exchange Commission and a pending member of the Financial Industry Regulatory Authority, we review and approve every pitch on the Gee Funding portal to ensure that all the information presented to the crowd is fair, clear and not misleading.
We conduct thorough due diligence on the issuer, its legal structure and directors by vetting the info their submitted to our platform and by using third-party provider service as well. We also verify evidence supporting any claims being made by the business such as market size, contracts and partnerships to ensure the information provided is accurate. This process can take between days or weeks, sometimes longer if the company or raise is complicated.
To make this process more open and transparent to our members, our Due Diligence Charter outlines in detail the analysis and verification that is conducted by the Gee Funding team as part of the approval process. It is also regularly updated when we make improvements to our due diligence processes.
In line with our company values, our guiding principles for this Charter are:
Read Our DUE DILIGENCE
Gee Funding maintains record keeping of fundraising approaches and documentation digitally and secured on the Gee Funding platform. Gee Funding shall keep all documents and data in a manner which allows for a full and immediate reply to enquiries received from SEC, Finra or, in accordance with applicable law, from other authorities or a court. Read our Record Keeping Policy
Yes, we do! It's a simple way for anyone to log in to GeeFunding.com.
If you're an entreprenuer, it's a great way to let investors know more about your business and your fund raising campaign. It's an easy way to show potential investors that you're a real person. You may also edit the privacy settings of your Facebook account to control what your guests see.