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Frequently Asked Questions

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Education Materials

General FAQ

Introduction

On May 16, 2016, regulatory reforms became effective that permitted everyday investors and not just the wealthy to invest in private companies raising capital under the provisions of Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012. Securities-based crowdfunding is an exciting opportunity for all investors to invest in new ventures. However, investing in early stage companies and private securities (securities not registered with the SEC) exposes investors to increased risks of loss of their entire investment amount. Investing in startups is highly speculative since new ventures have a high probability of failure. Because of the risks involved with securities-based crowdfunding, you are limited in how much you can invest during any 12-month period and are required to review certain educational materials to learn about the investment process, limitations and risks before you invest.

 

This section aims to educate you, the investor, what the process will be before you choose to invest in a Company, the requirements for investing, and the risks that come with investing in an equity crowdfunding offering.    

 

Welcome to Bumper Collective!

Part 1: The Basics of Investing

Part 2: Risks of Investing in Equity Crowdfunding

Part 3: What You Should Do Before Investing

Part 4: How Much You Can Invest

Part 5: Restrictions on Transferring Your Security and Exit Strategy

Part 6: The Investment Process (Entering Your Investment On the Bumper Collective Portal)

Investor FAQ

Why should I invest in Bumper Collective deals?

You should invest in Bumper Collective deals because there is a potential for financial returns and you believe in the project’s success. Music and film deals can be risky, so we expect and encourage the creators we work with to produce projects to the best of their ability, and to have a business plan with a path to profit. Some of the criteria we consider when deciding to work with a creator includes them having experience developing projects in their field and analyzing their historical data from past projects to justify their business plan. If you know something is going to be the next big thing, why not invest in what you know?

What kinds of investments should I compare Bumper Collective deals to?

Do I have to be a US citizen to invest?

What is the minimum amount I can invest?

How much can I invest?

How do I calculate my net worth?

If I invest in a project and it fails to reach its funding goal, will my funds be refunded?

What are my options for cancelling my investment?

When will I see a return on my investment?

Can I sell my shares?

Is investing in albums, films, or other startups risky?

After an offering closes, does Bumper Collective maintain an ongoing relationship with each issuer (creator)?

If an offering is posted on Bumper Collective, does that mean you recommend that I invest and you think it will succeed?

What fees does Bumper Collective charge?

What are the different investor statuses on Bumper Collective?

Issuer FAQ

What fees does Bumper Collective charge?

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.  

Are there any additional costs to raising money on Bumper Collective?

Other costs to think about?

What is the maximum amount my company can raise under Regulation Crowdfunding?

What is the application process to post my offering on Bumper Collective?

What happens if my offering reaches its deadline?

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