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Bumper Collective charges the following fees for services it provides in connection with the crowdfund offerings posted on the funding portal:
(i) 5% of the gross proceeds (total amount raised) of each offering payable in cash (referenced in the Form C/Offering Documents), and
(ii) negotiable percent of securities offered in such offering (referenced in form C/Offering Documents). All fees are payable at each closing by the issuer.
In addition to our fees, there are other financial costs that are associated with your offering. All these financial fees can be included into your overall raise. Costs will vary based on the offering type and nature of your business. We have 3rd party relationships and in house solutions to help you prepare these required items below:
Form C: If you choose not to use our in house solution, we require all issuers to engage their own securities lawyer to advise on the regulatory requirements and prepare the necessary offering documents.
Escrow & Payment Processing: All subscription amounts for offerings posted on the portal are deposited directly with a Qualified Third-Party Escrow Agent. Bumper Collective does not hold funds or securities directly.
Transfer Agent & Record Keeping: The SEC requires that you establish a means to keep accurate records of holders of your securities. This can be satisfied by engaging a registered transfer agent. As an issuer, you have an obligation to ensure you maintain accurate investor records. We will work with you to determine whether your project or business requires a transfer agent.
Video: You must create a short video that explains what your project is all about and detailing the investment opportunity being offered. For example, if you are a creator looking to raise money for your next project, the video would show you are raising $50,000 in exchange for a crowd equity stake of 20%. This video will be shown at the top of your deal page.
Marketing: Make sure your biggest fans and customers know that you are offering securities that allow them to invest in your project. Marketing costs can vary significantly. It is up to you to determine how and how much you want to put into this. Regulation Crowdfunding limits the timing and content of your marketing, so you should consult with our team and/or your legal counsel before distributing any marketing material.
Issuers can raise up to a maximum of $1,070,000 in a twelve-month period through equity crowdfunding.
Once you have signed up with Bumper Collective and become a verified sponsor, you can click “Create Offering” to start the application process to post your offering. Once you have filled out your offering information, click “Submit for Approval.” Our team will review your offering and will either approve it or make comments for you to revise it before the offering goes live. Of course, no offering may begin until a Form C is properly filed with the SEC.
If you have reached your financing goal by the end of the offering period stated in your Form C, investor subscription amounts held in escrow will be released to you. The escrow agent will wire funds to the company’s bank account. If, however, you fail to reach your funding goal by the end of the offering period, all funds held in escrow will be returned to investors without any deductions.