Investment Process #
Investment Process General #
- Users interested in investing must complete the REG A or REG D form and initiate the KYC process (both Passed and Pending statuses are acceptable for submitting an investment). Additionally, to legally finalize an investment, users must complete both accreditation and KYC verification.
- Any progress a user makes in the investment process is saved, allowing them to leave and return later to continue from the last incomplete step.
- Starting a new investment for a different offer listing does not overwrite the progress of an ongoing investment.
- Users have the option to cancel an investment that is in progress before completion (TBD).
- After filling out and confirming an investment (with an
investment status of
CONFIRMED/
LEGALLY CONFIRMED), a user wishing to
cancel must provide:
- Full name (pre-populated)
- Phone number (pre-populated)
- Cancellation reason
- Investments cannot be canceled from the portfolio once the offer is 100% funded OR IN LEGALLY CLOSE/ SUCCESSFULLY CLOSE statuses.
- Admins have the authority to decline a user-initiated investment cancellation, in which case the investment status will revert to CONFIRMED/ LEGALLY CONFIRMED.
Investment Process Steps #
| N | Step | Description |
|---|---|---|
| 1 | Amount | The number of shares the investor wishes to purchase. |
| 2 | Ownership | Ownership information. |
| 3 | Signatures | Agreement checkboxes (2 total) E-sign document(s) for signing/reviewing. |
| 4 | Funding | Selection of
payment method: - Balance (Dwolla wallet) - Linked bank account (TBD) - Link another bank account(OPTION TO LINK BANK ACCOUNT - TBD) - Wire - ACH |
| 6 | Review | An opportunity for users to verify and, if necessary, modify the details provided during the investment process before final submission. |
Post-Investment Process #
- Once the investor confirms the investment (after the last step is submitted), the investment status becomes CONFIRMED, and a Trade in North Capital is created.
- The payment investment transfer will not be created until the investment reaches a LEGALLY CONFIRMED status (after KYC & Accreditation are verified).
- If a user’s accreditation and KYC were approved before finishing the investment, the LEGALLY CONFIRMED status is set immediately, trade is created and transactions are initiated.
- If North Capital declines accreditation verification documents, the investment status remains CONFIRMED. Transaction is not initiated in this case.
- For Pending Investments: A Dwolla transfer will not be created until the pending deposit transaction, which the pending investment depends on, settles in the user’s wallet and becomes part of the Available Balance. The investment status changes to LEGALLY CONFIRMED once North Capital approves the investor’s accreditation and KYC is verified, triggering the Pending Deposit Transaction.
Investment Cancellation Process #
Investors may wish to cancel their investment and retrieve their funds. The cancellation process can vary depending on the current stage of the investment and the payment method used. Find more details here.
Investment Payment Process #
Investors complete their investment by making a payment using an approved method. The system verifies the transaction, ensuring compliance with regulatory requirements before processing the funds. Payment status updates are reflected in the investor’s portfolio. Find more details here.
Offer Funding Process #
Once an offer is live, funds are collected from investors and securely held in an escrow or designated wallet. The system tracks contributions and ensures that funding conditions, such as minimum investment thresholds, are met before proceeding. Find more details here.
Offer Closing Process #
When an investment offer reaches its target or deadline, the closing process begins. This includes finalizing investor commitments, disbursing funds, generating closing documents, and updating offer status. Compliance checks are performed to ensure regulatory adherence. Find more details here.
3rd Party Integrations #
- North Capital
- Creates accounts for investors with all provided information
- Reviews and approves investor accreditation
- Creates and processes trades derived from investments
- Creates and processes transactions for investments (if North Capital is used as payment type)
- Dwolla (if used as payment type)
- Creates and processes transactions for investments