What’s Included

Our commitment to continually improve access to funding begins here. Here is how we help you get to the next level:

Key Features

Dedicated
Account Team

Financial, operations, and marketing professionals will support your preparation and campaign execution

Campaign
Promotion

Support to help you reach your network and the ability to include deal syndication in your promotion strategy

Free Escrow
Account

No extra cost to setup the For Benefit Of escrow account with an actual brick and mortar bank

Unlimited Free Disbursements

After minimum and cooling period requirements are met, rolling disbursements are made at no cost

10 Hours
Consulting

Leverage our experience in campaign planning, technical solutions, biosciences, finance, and marketing

Issuer
Dashboard

Status views, real-time reporting, notifications, and compliant campaign communications

Private
Landing Page

Secure, compliant hosting of your offering, personalized URL which can be linked to your website Investor page

IRA + Card
Pay Options

Offer IRA Rollovers, Credit and Debit Card + Payment Plan options to increase your final raise amount

Free K’1s
First Year

Saves accounting cost plus document generation fees; easily manage larger groups of investors without effort

Campaign
Aftercare

Issuer and investor service including simplified tax reporting and self-serve forms to name a few


Additional features

  • Use our PPM Templates

  • In-house Transfer Agency

  • Automated Email Nudges

  • Support for Perks

  • Bring your own accountant

  • Bring your own attorney
  • Set your own deal terms

  • Complex capital stacks 

  • Manual approval option

  • Personalized Landing URL

  • Investment Bankers on staff

  • No restricted business types

  • 100% control of platform code


Fees

Costs to Raise

Placement on the portal:

$2,500 plus 3-7% of raise total as a success fee

Filings/preparation:
Discounted Accounting Vendor: $3,000 to review financials for Reg CF” offerings
Discounted Securities Attorneys: $5,000 – $7,500 to prepare/review offering documents


How Long it Takes

Typical Timeline of a Raise


Offering Exemptions

What’s an Exemption?

State and federal exemptions let small businesses sell securities without the costs and SEC or state reporting requirements of an IPO.

As an example, Reg CF is a federal exemption that allows for national campaigns under SEC & FINRA oversight. Reg CF isn’t the only federal example, as shown in the chart below.

Each exemption has it’s own rules, but some allow public solicitation of investment from ordinary investors and/or accredited investors. Also, transactions must occur in a legally regulated marketplace (the Portal), and the Regulator must formally review the Issuers paperwork before the company can advertise their offer.

To protect consumers, there are mandatory risk disclosures, caps on the total amount of the raise, and caps on the amount an individual may invest.

Without an exemption, it is not legal to ask for investment publicly i.e. on Facebook or by holding an event. FYI, rewards-based crowdfunding, e.g Kickstarter, is legal because those campaigns ask for a donation in exchange for a product.

Selling investments (including Shares, Notes, Loans, etc.) are financial security products and they must go through this exemption process or the Founder is breaking federal securities law.

Navigating the choice of exemptions to best fit your business is one of the services we include with onboarding.


Exemptions Supported on Silicon Prairie


Choosing Securities

Working with your securities attorney…

You’ll decide what single or combination of securities to offer. We’re glad to make suggestions based on our experience. The types of securities offered by issuers will include:

  • Equity

  • Debt

  • Convertible Notes

  • SAFE Notes

  • Revenue Shares

A little bit of detail about each of these below.

EQUITY

In an equity offering the issuing company is offering the investor some form of stock or membership unit, depending on the corporate formation.

An investment buys a percentage of company ownership.

Typically issuers may offer preferred and/or common shares, as well as potentially different classes of stock such as “Series A”, “Series B” that may have different rights and liquidation preferences.

DEBT

A debt based offering are most commonly term loans. They can pay any amount of interest and have different repayment schedules. From monthly interest only payments to simple balloon repayment at the term, debt based offerings may be more appropriate for investors who desire cash flow potential from their investments.

CONVERTIBLE NOTES

As the name implies, a convertible note is a hybrid that typically beings life as a debt based instrument and then converts into an equity position at some future date or event.

Convertible notes will often offer the investor the right but not the obligation to become equity investors if a qualifying event should occur.

SAFE NOTES

A Simple Agreements for Future Equity or “SAFE” note is a convertible security that, like an option or warrant, allows the investor to buy shares in a future priced round.

Unlike convertible notes, they are not debt and therefore do not accrue interest. Typically they do not include voting rights.

REVENUE SHARE AGREEMENTS

This is a flexible repayment contract linked to the revenue performance of the company. Payments and the term can vary, but often result in a shorter investment period and a higher effective interest rate of return.

Revenue shares closely align the interests of the investor and the issuer.


Ways to Invest

Get to your goal faster, with less friction

We help you make it easy for your investors to fund their pledges.


Promotion

It’s about who trusts you

The size and type of offer, plus the stage of your company’s growth will determine your promotion strategy. For example, businesses looking to expand that have a recognized brand within a limited geography e.g. might not benefit from our deal syndication with other broker dealers. Accredited investors located across the country may have restrictive investment criteria, or lack motivations other than financial gain. In this case, the most likely path to success is for the owner/founder/team to convert their social capital and brand awareness into business capital.

Similarly, because real estate attracts investors specifically seeking opportunities in this business category, deal syndication + highly targeted digital campaigns can achieve results that a ‘brand-loyalist’ approach would not.

For most of our issuers, the promotion strategy is built around appealing to the shared motivations of their customers, vendors, partners, and personal network.

  • Yes, if you need it, we’ll help you create a strategy to promote your deal.
  • Yes, we’ll promote your deal within our network in a compliant manner.
  • Yes, we’ll guide you through the process of preparing your landing page.

No, we cannot guarantee to find you investors.

We’re different than the portals that only take 1% of potential investors or those that guarantee success, “or your money back.” Those portals are cherry picking companies for sure bets, and blocking lots of businesses out of the process.

We say, “bravo” to the issuers that meet their raise goal. And to those who only achieve their minimum, but the money moves them to the next level. It’s not that our expectations are low. On the contrary, we expect to see more businesses get funding once, and master the process to do it even bigger/better a second time.

Your primary resources for promotion are your network, strategy, marketing budget, capacity to execute, and your ingenuity.

We promise to work with those.
And to serve the other 90 or so percent of businesses seeking capital.


Partners

Professionals focused on capital

Getting prepared to raise funds easily 80% of the process. Legal, accounting, and marketing are primary areas where professional services are required to get your campaign launched. Through our own fundraise, and while working with clients, we’ve vetted a short list of preferred partners.

All of them are driven by the “smart money” approach of investment crowdfunding and the desire to help democratize capital for business. These are no-nonsense, get things done partners.

Because of many of them use our Geppetto software for document automation, several offer either pre-negotiated pricing or deferred payment in conjunction with your campaign.

  • Securities attorneys
    I’d like an introduction

Required to use our platform – will help you choose appropriate securities for your business situation. Your securities attorney will also prepare the offering documentation and file the forms necessary to get your exemption. They will also provide guidance on how to comply with securities law and regulations.

FYI: Our preferred partners include legal professionals in Minnesota and New York. Some of them help craft the original crowdfunding legislation.

  • CPAs / Accountants
    I’d like an introduction

If you do not have a relationship with an accountant, the required financial statements for a raise might encourage you to start one. Your accountant will lead the development of the company income statement, balance sheet, cap table, revenue forecast, and breakeven analysis for starters. Other documents may be needed, depending on the stage of your company. Many of these documents will accompany your business plan and offering documentation on your portal landing page.

FYI: Our preferred partners include CPAs with state, national, and global experience. Some of them are actively helping startups cross the chasm to Series A funding.

  • Marketing consultants
    I’d like an introduction

Know a lot about your product or service, but not sure how to sell your offering to investors? Marketing campaigns include many moving parts – from strategy, brand, digital tech stack, messaging, to the business development tools like your pitch deck and elevator speech. If your marketing plan needs some fresh ideas or extra capacity to manage execution, we know people.

FYI: Our preferred partners include marketers with experience in real-estate raises and tech startups/enterprises. One helped write our DIY Campaign Gold Book.


Consulting

Expertise to get you to the next level

Business planning, Financial decisions, Compliance, Biosciences, Brand development, Campaign marketing, and Software technology are core competencies within Silicon Prairie.

Available in blocks of hours or as defined projects, we can extend your team’s knowledge, skills, and capacity to solve problems and find possibilities.

Leverage the experience of our talent to advance your business and your campaign.


Resources

Accelerate your raise

Successful business leaders know the value of equipping themselves with great tools. We’ve developed and curated a collection of services and info to energize your funding initiative.

Plan your way to success. Features Finding the best path to a working [...]

Get prepared to run your campaign and promote your offering using our DIY workbook and templates. [...]

Get your private placement memorandum and other issuer documents prepared in less time. Features [...]


Getting Started

Ready to Raise?

Make sure you’ve reviewed our 5 minute video and joined us for our Open Office hours, if you haven’t already. If so, connect with our team via our Client Services email or the phone number below. We’re excited to have you join other businesses who have raised capital on the Prairie.