General Questions

What is Crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the internet.  

What is Equity Crowdfunding?

Equity Crowdfunding is a specific type of crowdfunding in which the people who provide the company with funds become part owners of that business; they own equity in the business much like shares in a stock. Once the United States Securities and Exchange Commission (SEC) sets its regulations and issues the necessary licenses, Equity Crowdfunding will be legal in the United States. The regulations are expected to be published in early 2013, and licenses issued to portals, such as WorkforceSoftwareSolutions, a few months later. 

What is a funding portal?

WorkforceSoftwareSolutions is a funding portal. We facilitate the connection between the entrepreneuer (i.e., the creator of the business or startup) and the investor by providing a framework on our website. We will manage certain parts of the process like the financial transactions and vet the businesses before they are posted on our site. Until all of the details are finalized by the SEC, hopefully within the next 6 months, we cannot provide these services to unaccredited investors.

How is crowdfunding different from angel investing?

They are actually not as dissimilar as many people think. Angel investors are accredited, for one, and generally invest amounts of $10,000 or more as seed capital. They frequently roll over their investments once they are established. As equity crowdfunding develops, there may be a melding of these two types of investments. Crowdfunding is more Internet/online-based than angel investing at this time, but that will undoubtedly change in 2013.

How does WorkforceSoftwareSolutions work?

WorkforceSoftwareSolutions will be a crowdfunding portal registered with the SEC and FINRA. WorkforceSoftwareSolutions vets businesses looking for capital and allows them to post their profiles on our portal. Potential investors create accounts at WorkforceSoftwareSolutions.com and can then search by category or other criteria for a business opportunity that suits their personal situations and investment interests. At that time they choose the amount they wish to invest. The funds will be held in a third-party, independent escrow account. If the business does not attain full funding by the raise deadline, all investors’ funds are returned to them in full. If the business reaches its Target Raise, each investor will receive a specified amount of equity shares in the business.

Why would people invest in a startup?

There are a few reasons. First, they hope to make a profit. But for many potential investors, it’s also the energy that comes from supporting a creative new idea and getting in on the ground floor. In addition to providing financial backing, investors offer invaluable support and guidance to the business’s leadership.

What do investors get when they back a startup through equity crowdfunding?

The SEC has not yet spelled out all the regulations, but the way it’s anticipated to work is that an investor will receive shares of the business. It is similar to buying shares in the stock market, and it carries the same kind of risk. If the business is a success, you will profit, but if it goes under, you lose. That’s why you will need to exercise caution when investing, but there is great potential!

Who is eligible to invest through WorkforceSoftwareSolutions?

Anyone who is 18 or older and a U.S. resident may invest through WorkforceSoftwareSolutions. There are two types of investors: non-accredited and accredited. We will ask you to fill out a simple information form when you get started so we can determine which type you are.

Is WorkforceSoftwareSolutions a form of crowdfunding?

Yes, it is. WorkforceSoftwareSolutions is a crowdfunding portal, or platform. Our site allows investors and entrepreneurs to connect to fund new businesses. We are excited to be at the forefront of equity crowdfunding in the U.S.

How does WorkforceSoftwareSolutions protect my secure personal and company information?

WorkforceSoftwareSolutions recognizes the importance of protecting your confidential information. We use SSL True BusinessID with Extended Validation with strong 256-bit encryption, which is the highest level of authentication available among SSL certificates . You can be assured that your information is safe and secure with us.