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General Campaign Questions
What is equity crowdfunding?
Equity crowdfunding is a process for companies to raise capital from every-day people in exchange for equity in their company. Companies can then use the funds raised to continue growing their business. Investors in the company get to come along for the ride as the company grows and develops.
What is PicMii's role in crowdfunding?
PicMii is an online crowdfunding platform that connects companies looking to raise capital with investors. Simplicity is everything at PicMii. We provide a streamlined company listing process to make raising the capital you need easy. Once approved by PicMii, we create a virtual business pitch with the information you provide to attract investors. You can then raise the capital you need at the valuation you set.
Can companies based outside of the U.S. raise on PicMii?
Due to U.S. laws and regulations regarding equity crowdfunding, PicMii only supports U.S. based companies to raise on the platform.
What is PicMii Crowdfunding's company application process?
We pride ourselves on a streamlined application process to make raising capital easy for your company. The application process consists of a few steps:
- Fill out required company application form.
- PicMii Crowdfunding reviews application form.
- Phone Interview
Once you are approved for an account on PicMii, you are able to complete the “New Campaign” form, which details your offering and virtual business pitch so that we can create them. If any additional information is required during review of this form, we will be in contact with you.
Once this step is complete and your offering/virtual business pitch are created, you will be raising the capital your business needs to succeed.
For more information about the process of creating an offering on PicMii, check out our blog article about Regulation Crowdfunding!
How long does it take for a company to launch on PicMii?
The time to launch on the platform typically takes 2-6 weeks.
What's the average campaign duration?
The time it takes to complete a successfully funded campaign varies, but a typical crowdfunding campaign lasts 60-90 days.
Are there any restrictions on incorporation type for companies fundraising on PicMii?
Only Limited Liability Companies (LLCs) and C-Corporations can run campaigns on PicMii.
How much does it cost to raise through PicMii?
Under Regulation Crowdfunding, it is possible to begin fundraising at no up-front cost if you are raising $124,000 or less. If you are planning to raise more than $124,000, then your costs will include between $2,000 and $10,000 for a financial review or audit by a public accountant.
Am I limited in how much my company can raise?
Under Regulation Crowdfunding, companies may raise up to $5,000,000 in a 12-month period. If raising $124,000 or less, the principal executive officer may self certify the company’s financials. If raising between $124,000 and $1,235,000, then the issuer will need to get their financials reviewed by a independent certified public accountant. If raising over $1,235,000, then the issuer will need to get their financials audited by a public accountant that is independent of the issuer.
Can my company collect funds as they come in?
Your company may elect to disburse funds multiple times during your fundraising campaign. The regulation, however, requires that your crowdfunding campaign has been active for at least 21 days and that you exceeded your minimum funding goal in “cleared funds” and Credit Card commitments. Once you have achieved these milestones, you may collect capital as it comes in.
How is the valuation of my fundraising round determined?
On PicMii, you have the ability to set your own valuation for your funding round. However, it is critical to the success of your offering to have an accurate valuation. The more accurate your valuation is, the more likely you’ll achieve a successfully funded campaign.
Will every individual investor be listed on my company's Cap Table?
Traditionally, each investor would be one line on your cap table. However, there are some options to clean up your cap table if you desire.
Fortunately, the SEC ruled in November of 2020 to “permit the use of certain special purpose vehicles (SPV) to facilitate investing in Regulation Crowdfunding issuers.” Under specific conditions that ensure the SPV functions purely as conduits for investors to invest in a company seeking to raise capital through a crowdfunding vehicle, the operating company adds only one new shareholder to its Cap Table. Read more on page 156 of this document.
Additionally, when utilizing a SAFE, funds raised can be kept in one line on the Cap Table until the investments eventually convert into equity. This is another common option to raise while keeping your cap table clean.
The PicMii Blog
For more information please visit our blog. We have many in depth articles to help you begin your crowdfunding campaign
Any questions that are not directly answered in the FAQ or PicMii Blog may be submitted in the “Contact Us” section. Who knows, maybe your question will be added to the FAQ!
Regulatory information is featured in the PicMii blog, however please visit the SEC’s website for specifics regarding your offering.