Raise funds from accredited and non-accredited investors who believe in your project. If you are looking to raise capital through Caravan Funds, then please contact our origination team at email@example.com to discuss the process and options, or apply here.
Your Fundraising Options
Before you read more, please note, this website, caravanfunds.com, which we refer to as the “Site,” is used by two different companies: Caravan Funds Capital, LLC, which we refer to as “CF Capital,” and Caravan Funds Portal, LLC, which we refer to as “CF Portal.” CF Capital offers investments in real estate projects under Reg D 506(c), Reg A+ of the Securities and Exchange Commission (SEC). These investments are offered to accredited investors only. CF Portal, which is a licensed Funding Portal, offers investments in real estate projects under Regulation Crowdfunding, which is also known as Title III Crowdfunding. These investments are offered to everyone.
Caravan Funds is a real estate investment crowdfunding platform. We match investors with developers raising funds for real estate projects and to provide everyone with the opportunity to invest. Caravan Funds supports Regulation CF, Regulation A+ and Regulation D 506c allowing issuers to legally raise funding from investors in all 50 states under Federal Law.
You can raise up to $5 M from anyone over the age of 18 through Reg CF annually. Accredited investors self-verify and invest as much as they like. And unaccredited investors are permitted to invest a percentage of either their income or net worth, capped at $107,000 annually.
You can offer minimum investment amounts as low as you like which is important if you want to include community capital.
If you want to raise more, you can do so through a Reg A+ or Reg D Offering.
**Rich means accredited investors with $1M+ in net worth (minus their home) or who’ve earned more than $200K per year ($300k with a spouse) in each of the past two years. It also means institutions like banks and VCs. Technically, 35 non-rich unaccredited investors are allowed.
***There is a variant of Regulation D (Rule 506c) that permits advertising if investors are verified as accredited.
Want to learn more about the different types crowd-funding options available for you?
Our goal is to list your offering quickly and seamlessly. Admittedly, this is not a 15-minute process. However, we have made the process
- We’ll help to prepare a compliant disclosure packet
- We’ll provide legal templates for your disclosure documents, LLC agreement, investor agreements and more, all crafted to fit the regulations seamlessly
- We’ll acquire SEC access codes to list your offering
- We’ll register all paperwork as required with the SEC
- We’ll set up a bank account ready to accept investor funds
- We’ll help you set up the escrow accounts for your offer
- We’ll give you step-by-step training on how to work with your Escrow and Custody Service to manage relationship and investment from your Investors
- We’ll create your online campaign page
- We’ll guide you through creating appropriate marketing materials
- We’ll ensure that financial reviews and bad actor reports are completed as required
All investors invest through our fully electronic process, with investment agreements created digitally. They complete required disclosures on risk and more on our platform, all of which information is stored in our regulation compliant data storage. At the end of the offering we’ll provide you with a list of investors, all of their contact information and investment agreements, and wire you the funds.
- Talk to us early about your legal structure. There are rules about what entities Reg CF investors can invest in. No investment companies are permitted.
- Set aside 8 weeks to fully prepare your offering. You could complete it more quickly, but life, and project hiccups, often get in the way. The speed with which you launch your campaign depends on how focused your team is.
- Plan for a great marketing campaign. It will impact the speed and amount of funds you raise.
Our fee structure for Reg CF offerings is as follows:
- $2,500 onboarding fee +
- 5% of first $1 million raised
- 4% of second $1 million raised
- 3% of anything raised thereafter
According to Crowdfund Capital Advisors, you can estimate about 5 percent of the raise in total costs for legal, accounting and marketing expenses. This varies depending on how much you’ve already prepared and what you can complete in-house. Other expenses you may incur include:
- Preparing offering agreements
- Financial review and audit (if required by SEC), U.S. GAAP-compliant financial disclosures. The financial disclosure requirement varies based on the target raise amount you set.
- Transaction fees depending on how Investors submit funds (ACH, credit cards, etc., which can be paid from raise proceeds)
- Creating campaign page (with in-house talent or outside help)
- Filming and producing video (optional but highly recommended)
- PR firm to promote campaign (optional)
We’ll either provide in-house support or support through our partners to streamline the budget and experience of your campaign.
Looking to Raise Capital?
If you are looking to raise capital through Caravan Funds, then please contact our origination team at firstname.lastname@example.org to discuss the process and options, or apply here.