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June 27, 2011 / jessicajackley

Changes to our site

As many readers know, there are some key changes taking place to the ProFounder product offering.  We have decided to stop offering the transaction of securities on our site for new customers as of June 24, 2011.

Going forward, this means entrepreneurs using ProFounder cannot invite investors to view, pledge to, or invest in raises on the site.  Users can continue to:

  • use compliance tools to plan out how many investors can be considered in each state, and to understand what laws and filing fees might be relevant for each raise
  • develop and hone a pitch to potential investors
  • use our term sheet generator to create custom terms based on your business’ unique needs
  • learn best practices for engaging community support

We apologize for the inconvenience this change may cause for entrepreneurs who may seek to use our site in the future (current raises are not being affected) and appreciate your patience as we shift our focus.  We highly value your feedback, and are committed to incorporating that feedback going forward to make ProFounder better over time.

We will continue to keep you updated!

6 Comments

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  1. Benjamin / Jun 28 2011 12:20 am

    How would you recommend transacting securities if you have removed the feature from your site?

  2. jvrudnick / Jun 29 2011 7:32 am

    why? why the change, I mean?

    Jim

  3. Mark Metz / Jul 2 2011 5:15 pm

    HI,

    So this means your primary functionality is no longer available?

    What happened?

  4. eirlymeyer / Jul 2 2011 9:19 pm

    Can you explain this in more detail in what this actually means?
    You are stating:
    “Going forward, this means entrepreneurs using ProFounder cannot invite investors to view, pledge to, or invest in raises on the site….

    I’m assuming the issue deals with “inviting investors.” How would investors know about the opportunity then?
    What was the problem that lead to this issue.

    Are there any other future updates in the pipeline ?
    Why was this change made all of a sudden?

  5. Harley Luplow / Aug 18 2011 7:08 am

    So, the Investor Planning section on the website is not active?

    It reads:
    Thoughtful planning of who might invest is a key factor in preparing for a successful raise. Enter the information of your potential investors below. It helps to think in terms of different groups with whom you have a substantial, pre-existing relationship (this may include family, friends, college friends, co-workers, members of your book club), and then list out the individuals you know in each group. The states that your investors come from will impact how many people can invest in your raise, so think strategically.

    4Compliance Ruleset: Simple
    Compliance RulesetBASIC Compliance (Rule 504):
    If you would like to invite any unaccredited/ unsophisticated investors to your raise, this is the compliance engine to use. You can raise less than $1M and must follow the state-by-state limits below for number of investors.
    ADVANCED Compliance (Rule 506):
    This compliance engine is appropriate if you would only like to invite sophisticated/ unaccredited or accredited investors to your raise. There is no limit on the amount of money that you can raise. You can include 35 sophisticated/ unaccredited investors and unlimited accredited investors.
    How do I know if someone is an accredited investor? Details Here
    How do I know if someone is a sophisticated investor? Details Here

  6. Dialflow Mobile (@Dialflow) / Oct 12 2011 2:49 pm

    I truly appreciate the efforts of your site, however this was the most elegant feature you offered. Now that I have completed my pitch I now see this invite no longer exists. Now I must generate my own invite link to investors using Google docs and spreadsheets so that the link can be shared. I don’t want to sound unappreciative, but this feature was why I signed up. I could have done this myself, respectfully.

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