Glossary

Fundraising

Fundraising is the process of gathering voluntary contributions of money or other resources, primarily for non-profit enterprises but also for venture capital and private equity investments.

Fund

Fund refers to a pool of money set aside for a specific purpose, particularly investment purposes, managed by investment professionals.

Funding Platform

A funding platform is an online marketplace that connects potential investors with businesses that need capital. Platforms vary widely in terms of the types of investments offered, from equity, debt, and grant-based funding to hybrid and alternative finance models.

Feeder Fund

Feeder Fund is an investment structure involving one or multiple funds that pool their capital into a central fund (master fund) to leverage economies of scale in investments and reduce costs.

FINRA (Financial Industry Regulatory Authority)

FINRA is a non-governmental organization that regulates member brokerage firms and exchange markets. It's dedicated to investor protection and market integrity through effective and efficient regulation of broker-dealers.

Form 1A POS

Form 1A POS refers to the post-qualification amendment of an offering statement, required when there are significant changes or updates to information that was previously submitted to the SEC.

Form C/AR

Form C/AR is used by companies to file an annual report with the SEC after successfully raising capital through Regulation Crowdfunding. It includes financial statements and a review of business operations.

Fractional Ownership

Fractional Ownership refers to the division of ownership in an asset among a group of people. Typically used in expensive assets like real estate or aircraft, it allows for shared costs and benefits among the owners.

FinCEN (Financial Crimes Enforcement Network)

FinCEN is a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.

Form 1A

Form 1A is a regulatory document required by the SEC for companies that wish to qualify an offering of securities under Regulation A+. It includes information about the issuer, the securities offered, and other pertinent details aimed at protecting investors and helping them make informed decisions.

Form 1A DOS

Form 1A DOS refers to a part of the offering statement that includes the disclosure of significant events that may affect the issuer’s business. These events must be reported to ensure transparency and compliance during the offering process.

Form 1K

Form 1K is an annual report required under Regulation A of the Securities Act, detailing the issuer's operational and financial status over the past fiscal year. It is aimed at maintaining ongoing transparency post-offering.

Form C

Form C must be filed with the SEC by a company conducting a crowdfunding campaign under Regulation CF. It includes important information about the company, the terms of the offering, the intended use of funds raised, and financial statements, which help potential investors understand the risks and make educated investment decisions.

Form CU

Form CU is a submission to the SEC that a crowdfunding platform must make annually. This form includes updates and comprehensive details about the platform's operations, ensuring compliance with the regulatory frameworks governing crowdfunding activities.