How does Small Change work?
What does it cost to raise funds on Small Change?
One size does not fit all.
We see projects big and small, wanting to raise large and small amounts of capital. Some only want to use Reg CF and others only want to use Reg D and some want to conduct a side-by-side offering using both.
We’ll provide you with a fee structure once we have evaluated your project needs.
We include a lot. Our goal is to list your offering quickly and seamlessly. We’ll provide:
- Assistance with preparation of the Form C and disclosure packet
- Legal templates for LLC agreement, investor agreements and more
- Compliance review of your business plan narrative
- Form ID filing and access code generation
- Forms C and C-U filings
- Set up of bank account ready to accept investor funds
- Creation of online offering page
- Guidance on creation of appropriate marketing materials
Bad actor reports are required as are financial review reports if you are raising over $107,000 through a Reg CF offering. And you should count on marketing your project. That is essential.
Is my project ready to list on Small Change?
We assess a number of criteria which include:
- That your project fits our mission and scores at least 60% on our Change Index;
- That you (or your team) has relevant real estate development experience; and
- That your offering goal is at least $100,000; and most importantly
- That you have a network of friends, family and neighbors who care about your project and will likely invest.
If your project is eligible, we’ll ask you for additional materials which will include, but may not be limited to:
- proof of property control;
- a project sources and uses budget and an operating pro-forma;
- a business plan or detailed narrative about your project;
- a list of zoning entitlements and how close you are to approvals; and
- a thoughtful outreach and marketing strategy.
And finally, we’ll need to know about you and your team. We’re looking for developers who have a great project idea and have the skills and tenacity to complete it.
Want to get started? Go ahead and complete this form.
If your project is not a fit, we’d love to hear from you again, whether you develop your project further or move onto another one.
What if my project is in an Opportunity Zone?
Opportunity Zone or not, we need to assess your project based on a variety of criteria – whether it fits our mission and whether the business plan makes sense and whether your project will be ready to break ground soon. If you’ve already reviewed the criteria listed in “Is my project ready to list on Small Change” then go ahead and complete this form and we’ll get right back to you.
When should I incorporate my company?
Take note. Our disclosure packet is a suite of templates that are built around a Delaware operating agreement. We’re going to provide this to you free. If you incorporate in another state, or with a different operating agreement, you’ll have more work and additional costs. You’ll need to update our templates to match your operating agreement and we don’t recommend this.
So wait to incorporate until we’ve had a discussion or two.
What marketing materials will I need prepare?
You’ll need to provide lots of great visual materials to illustrate your offering online.
Make a video. We’ll provide a template storyboard. Take 50 fabulous photos of your project and the neighborhood. Make sure they are landscape format and at least 1MB each. And send us a high quality photo of you.
How long will it take for my offering to go live?
This really depends on you more than us. Expect the process to take a minimum of 5 – 6 weeks from first submission to going live. If you are super organized, it could take less time.
How long will it take to raise funds?
That depends on how much capital you are raising, on what you are offering investors and most importantly, your commitment to reaching out to your network.
Your network is critical to a successful raise.
Industry data suggests that approximately 80% of funds are invested by people you know, their family and people they know.
I’m ready to get started …
If you’re ready to get started now, follow the link to this form, the first step in our listing process. Give us a moment to review and test its fit for our platform. We’ll get right back to you!