What is MassVenture?
Will MassVenture Operate in states other than Texas?
What are the benefits of using MassVenture.com?
How is MassVenture regulated?
Is MassVenture.com secure?
How can I contact with MassVenture?
How does MassVenture work for investors?
Commonly Asked Questions
About Real Estate Crowdfunding.
Who can invest in a project on MassVenture?
Does MassVenture set up an escrow account?
How do investors earn returns?
How does the investment process work?
Is there a minimum/maximum investment amount?
Do investor have to pay fees to invest?
What kind of updates will I get about my investment?
Are these Investments liquid? When will I get my investment back?
How do you keep my personal information secure?
Where are the funds transferred through MassVenture deposited?
Is my investment guaranteed?
What happens after I invest in a project on MassVenture?
What if the minimum funding goal is not met?
What does MassVenture do for me, and what am I responsible for?
I am an accredited investor. Which investments are available to me?
When can I expect a return on my investment and how will it be distributed?
What are the terms of a MassVenture investment?
What documents will I receive as an investor?
What happens if there is more investment interest in a project than the funding needed?
Why do you need my Texas driver’s license number, Social Security number and Date of Birth?
How is MassVenture different than a Real Estate Investment Trust (REIT)?
Can I invest if I am a non-Texas resident?
What is a Self-Directed IRA?
How does MassVenture screen investments?
What do we look for in projects at MassVenture?
How long does it take to raise capital?
As an Real Estate Developer seeking investment, what do I need to list my project on MassVenture?
Are there any transaction fees?
Who can see my company information?
Who sets the terms of my investment offering?
What does MassVentures do for me, and what am I responsible for?
How much can an entrepreneur raise on MassVenture?
Will investors gain control over the real estate project?
What information will be listed on MassVenture marketplace?
What is a K-1?
What is the difference between Accredited and Non-Accredited Investors?
Can non-accredited investors invest in my company?
Am I an investment company?
Still need help? Send us a note!
For any other questions, please write us at [email protected] or call us on 55.341.6501
There is no ready market for the sale of the securities acquired from this offering and it may be difficult or impossible for an investor to sell or otherwise dispose of this investment. An investor may be required to hold and bear the financial risks of this investment indefinitely; The securities have not been registered under federal or state securities laws and, therefore, cannot be resold unless the securities are registered or qualify for an exemption from registration under federal and state law; In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved; and No federal or state securities commission or regulatory authority has confirmed the accuracy or determined the adequacy of the Disclosure Statement or any other information on this Internet website.
The definition of an investment company used in the JOBS Act and in Texas crowdfunding means a company primarily engaged in the business of investing, reinvesting, or trading in securities. Securities generally do not include the direct acquisition of property, so an entity that buys property for the purpose of development or resale may still raise funds from the crowd under our applicable rules. As you might expect, this does depend somewhat on the structure of your company and is one of the due diligence factors we review prior to accepting a project for funding on MassVenture.
Newly enacted Texas State Securities Board crowdfunding rules predicated on Title III of the 2012 JOBS Act open the door for non-accredited Texas-based investors (the general public) to participate and invest in private offerings. For more information on the new rules, please visit this Texas SSB Intrastate Crowdfunding page.
Similar to a 1099, a Form K-1 is an accounting of the tax income for the year. Each investor receives one per investment. Form K-1s are most commonly used in partnerships and in real estate ownership.
Along with the offering itself, issuers will provide a general business plan related to the project, return projections, management bios, and a video and photos of the real estate venture alongside any other relevant information. For companies that require assistance in select financial, legal or marketing matters, we gladly provide solutions and referrals via our partners.
No. Companies providing offerings on MassVenture remain in control of their operations. New shareholders remain as passive investors in a project, but may wish to contact you to ask questions or provide feedback.
Under current state crowdfunding rules, entrepreneurs may raise up to $1 million from Texas-based accredited and non-accredited investors. Because the percentile capital costs are higher with lower raise targets, we encourage issuers to perform careful analysis of the funds needed for a project, so as streamline costs and provide investors a strong offering.
All detailed project documentation will only be visible to registered investors on the MassVenture platform.
As a issuer, you must have a project that is aligned with our guidelines above. In order to become listed on MassVenture and have a project profile that is listed on our portal, you must create a profile, apply to fundraise online, and be accepted. MassVenture is unable to accept every company that submits a fundraising request. Please contact us for more information.
Offline, it can take up to 6 months for entrepreneurs with projects and a proven track record to raise capital. MassVenture aims to significantly reduce that time via the shorter lifecycle of online crowdfunding, with capital raise campaigns ranging from 30 to 90 days, depending on the entrepreneur’s duration choice.
Before placing investment opportunities on the marketplace, the MassVenture team reviews various aspects of the proposed project, including but not limited to: geography, financials, property type, return projections, investment structure and entrepreneur experience. In order to mitigate fraud, MassVenture performs background and credit checks on entrepreneurs
MassVenture allows Texas-based investors to choose how, when, where and in what type of project or group of projects to invest their money in. A traditional REIT only allows investments into pools of capital that are limited by asset class or geography. REITs charge investors high fees (sometimes upwards of 15% of invested capital) and because they are publicly traded, REITs are also prone to stock market volatility.
Shares sold through the MassVenture marketplace are a real investment in a real business. Texas’ new intrastate crowdfunding rules require that all investors investing in Texas-based real estate ventures be verified as Texas residents, hence the need for a Texas Driver’s License (TDL) number. Likewise, all income must be reported to the IRS. As a result, your social security number (SSN) and date of birth (DOB) must be submitted. MassVenture investors will be sent a year-end tax form by the project issuers.
All of the MassVenture marketplace offerings are funded on a first-come, first-served basis. Once an investment goal is reached, the offering is closed.
MassVenture investors may track investments in their portfolio, where they will find all the relevant deal documents, as well as receive periodic project updates, distribution notices, and tax documents.
The terms of each investment on the MassVenture marketplace are specific to that offering. Prospective investors should review in detail the offering documents provided for each investment opportunity.
Projected returns and distributions, as well as a timetable for milestones and a distribution schedule, are specific to each offering and, when available, are noted in the offering documents for that investment.
As an accredited investor, you may invest in any of MassVenture’s current offerings and there are no limits on the amount you may invest in select ventures. By Texas state securities rules, non-accredited investors are limited to a $5,000 max on investments.
The developer sets up an escrow account with MassVenture, but funds will not be disbursed until a project reaches the minimum funding goal and by a particular date, both set by the developer. If the minimum funding goal is not reached within the allotted time period, the investments will be returned to all investors. MassVenture does not assume liability for any developer’s failure to attain the minimum required funding threshold for a project.
Investments will be registered as part of the project’s fundraising efforts on MassVenture. The project developer will be responsible for communicating the project’s growth and development with you, which occur via updates on MassVenture or through other arrangements. We encourage developers to check in with their investors on a regular basis (monthly or quarterly).
All investments made in projects listed on MassVenture are in no way guaranteed to generate a return or preserve investment capital. Real estate projects are not guaranteed to produce quick profits, provide liquidity, or guarantee a high return, and it is possible to lose an investment. It is important that investors understand these risks as MassVenture does not assume responsibility for any investments made. It is recommended that investors conduct their own due diligence before deciding to invest in a project.
All funds for an investment are deposited into a MassVenture partner FDIC-insured bank account. Funds are then transferred into the bank’s escrow account until the target funding amount is reached, after which funds are transferred for the sole purpose of the select investment. If the target funding amount is not met, 100% of invested funds are returned to the investor.
In order to protect personal information, MassVenture uses 128-bit encryption. Additionally, banking data is never stored on the portal servers and information is protected both in-transit and at rest.
Private real estate investments of the type listed on MassVenture are not traded on a public market and therefore ownership in these investments cannot be easily traded or sold. Each project may have a unique projected “hold period”. The hold period is the expected time investors will be involved with the project until it is sold. Please note that a “hold period” is an estimate and may differ from the actual hold period for an investment, which may range from less than 6 months to greater than 5 years. For additional information regarding the hold period of a specific project, please review the details provided by the developer.
Developers are responsible for communicating updates and project progress with their investors via the MassVenture marketplace. Additionally, developers will provide investors with the requisite tax documents for each calendar year in which they have a distribution from an investment.
No, There is no direct fees changed to the investor.
Texas-based residents can invest in MassVenture offerings for as little as $500. Current state rules restrict non-accredited investors to a maximum investment of $5,000 per project. For accredited investors, there is no maximum limit and as such members can choose to invest as little as $500 or all the way up to the full target funding amount, depending on the criteria set forth by the issuer.
Investors who invest in an equity opportunity will receive periodic payments of cash flow from rents and/or a share of the proceeds when a property is eventually sold. Payments shall be deposited directly into a member’s MassVenture Investor Account managed by CrowdPay.
MassVenture has partnered with an escrow service provider to ensure that investor funds are securely held in escrow until the project sponsors minimum funding goal is met.
Now All Texans irrespective of income level can invest in a project on MassVenture.
There are two types of investors on MassVenture – Texas-based self-accredited investors and non-accredited investors. After registering to be an investor, you complete a simple form to indicate that you meet the requirements of Texas residency (via a Texas driver’s license verification) and, if applicable, accredited investor status verification. Upon certifying that you meet these guidelines, you will have access to full project profiles on MassVenture.
MassVenture plans to operate in all 50 states in the future. If you are not a Texas resident but interested in investing on MassVenture, or you’re interested in raising capital, please feel free to email us at [email protected]