EF Marketplace Frequently Asked Questions

  • Q: What does “Vetted” mean?
    A: Vetted, on the EnergyFunders Marketplace platform means EnergyFunders staff has confirmed all companies listed on the platform have gone through a legal and confirmatory due diligence provided by Crowdcheck. They cover the following:

    • Whether the company meets the disclosure requirements set out by law and regulation
    • Whether the company meets the SEC’s requirements for securityholder records (for offerings under “Regulation Crowdfunding”)
    • The backgrounds of the people who control the company
    • Whether the company is properly established and in good standing
    • Whether the company is legally able to issue the securities it is offering
  • Q: I’m a first time startup investor, where do I begin?
    A: Investing in startups is risky. It is important for you to familiarize yourself with our process and become comfortable with risk prior to investing. We suggest reading the “Investors” section of our website to better understand our investment process and to get yourself registered with EnergyFunders.
  • Q: Who is an accredited investor?
    A: An accredited investor is defined under regulations set by the SEC.
  • Q: If I invest, for how long do I have to hold my shares for?
    A: The requirement is one year based on SEC regulations. If funding is not completed, we will return your investment. The private market is very illiquid so you should be prepared to hold your investment for a longer period of time. Most startups fail and do not experience an exit. Those that do experience an exit take a number of years to reach this milestone.
  • Q: When the minimum time requirement has passed, how do I sell my shares?
    A: There is currently no market for selling your investment on the secondary market. You should plan on holding your investment until the company has an exit. If there is an emergency and you need to liquidate your investment please notify us and we will do everything we can to see if there is another buyer available, but we can’t guarantee that you will be able to exit. Most startups fail and there is no assurance an exit will occur.Please be aware that during the first year after purchase, securities regulations require that Regulation Crowdfunding investments can only be transferred to the issuer, to an accredited investor, to a family member in connection with the death or divorce of the purchaser, or as part of an SEC-registered offering.
    EnergyFunders Marketplace does not host any secondary offerings.
  • Q: What is the main difference between primary and secondary offerings
    A: The main difference between a primary investment offering and a secondary investment offering is how the shares (stocks) are acquired. In a primary investment offering, investors are purchasing shares (stocks) directly from the issuer. However, in a secondary investment offering, investors are purchasing shares (stocks) from sources other than the issuer (employees, former employees, or investors).
  • Q: How often will I get updates on the companies in which I invest in?
    A: The issuer/fundraiser is required by law to provide annual reports and may communicate with its investors more often.  However, the issuer/fundraiser is responsible for providing updates to investors.  Under certain circumstances (see Investor Education), the issuer/fundraiser may no longer have obligations to provide annual reports.  Once you make an investment, you’d want the issuer/fundraiser to work hard putting your investment to work, so they might not have much time to communicate with investors.
  • Q: If I want to invest “more than the maximum” in a particular opportunity, may I?
    A: Sorry, you are limited by law to a certain amount of investment based on your net worth, annual income, and the amount you have invested in the last 12 months in Regulation Crowdfunding investments.  We cannot allow you to invest more than the maximum amount that our website automatically calculates for you.  If you have any questions, feel free to contact us.
  • Q: Are there any fees to invest?
    A:In the future, we may charge a small processing fee that helps recover payment processing costs.  At this time, we’re waiving any fees to invest in order to welcome you to the platform.