How it works
Given the monumental advances in online social media networking capabilities, lucrative pre-IPO investment opportunities can now be made directly available to the general public...the 99%... the Crowd. Unlike most crowdfunding sites, which focus on private financing transactions, public offerings provide shareholders with the highest level of company screening and due diligence, investor liquidity and a foreseeable exit strategy.
Traditionally IPOs are underwritten by investment banks. The bank itself commits to buying the shares and in turn resells them (flips), for a profit, to institutional/sophisticated investors before it even closes the transaction with the company. Then the investors turn around and resell it to the retail investors, for a profit, in the open market. The retail investors are the ones eagerly placing the orders through their retail brokers to grab some of these "IPO" shares the second its available for them to purchase. Obviously, at that point, the shares have passed 3 hands and their price has already gone through 2 decidedly upward price adjustments. Our mission is to give retail investors the opportunity to get in on the ground floor of the IPO investment lifecycle.
Why isn't there any information on the IPO company?
According to SEC regulations, when a company files to register their offering, they begin what is referred to as a "Quiet Period". Once this period commences, it is illegal for a company to advertise their offering until after the SEC has declared the offering effective. This process takes between 2-3 months. After the SEC declares the offering effective and open for investment, IPO Village will post the company's profile in addition to the terms of the offering and links to all the public filings, quotes and trading activity. At that point, those who have signed up to be member investors with IPO Village, will be invited to return to the website and invest in the offering. The debut offering should go effective this Fall.
If I sign up, am I committed to make an investment?
No. The act of signing up simply indicates to IPO Village that you have an interest in participating in the upcoming IPO.
Will there be a minimum total investment in order for the offering to close?
Yes. On every offering there will be both a minimum and maximum investment set. In the event that the minimum is not met, all funds will be returned to investors.
Where will my money be held until the offering closes?
All funds will be held in VStock Transfer (www.vstocktransfer.com) escrow until either the IPO expires or sells out, whichever comes first. Once the offering closes, funds will be transferred to the company. VStock Transfer is the official Transfer & Escrow Agent for IPO Village hosted offerings.
How will I be able to sell my shares in the open market?
All companies hosting their offerings on IPO Village will either be already publicly traded or in the process of being listed on an exchange. All share purchases and shareholder accounts are recorded and maintained by VStock Transfer, the official Transfer & Escrow Agent for all IPO Village hosted offerings. VStock Transfer provides online account access and best-in-class services for all shareholders through the IPO Village website. Once the investment closes and the funds are released to the company, VStock formally books all purchased shares under the appropriate shareholder's account. Shareholders can access their account and either choose to have those shares transferred electronically (if applicable) to their personal stock brokerage account or have a physical certificate mailed directly to them. Shareholders may then forward physical certificates, at a time of their choosing, to a broker for deposit. When shares are deposited, wether electronically or physically, you will be free to sell anytime you wish (assuming market conditions permit).
Can investments be made from anyone internationally or are there geographical restrictions?
There are no geographical restrictions. Investments will be accepted from anyone, internationally. The only requirement is that they are over 18 years of age.
How is IPO Village compensated?
IPO Village is a public service, a user-based content website. IPO Village does not charge any fees for posting content to it's site. Users may post any content that falls within the stipulated guidelines, free of charge. All posted content is moderated.