The Summary of the Offering is a document required by law and provide potential investors a brief overview allowing to determine the general attributes of your offering.
Below are the instructions you need to follow to complete the Summary of the Offering.
1. Elevator Pitch
Provide a brief description that can help readers and potential investors quickly understand the goal of your business and its unique proposition.
What is the nature of your business and what market needs that are trying to satisfy? How your products and services meet these needs? What specific consumers, organizations or businesses your company serves or will serve? What are the competitive advantages that will make your business a success? (e.g. location, expert personnel, efficient operations, or ability to bring value to your customers).
2. Form of Business
What is the corporate structure of your business? Sole Proprietorship, Partnership, Limited Liability Company (LLC), "S" Corporation, "C" Corporation.
3. Principal Office
Where is your main office located currently?
4. Company History
Tell your company's story. Mention important dates or events which had an impact on your business.What year did it start? Where was it first located? Any relevant partnerships or additions to executive team? Any material transaction and financial events in the history of the company? Relationship to other businesses entities that are part of a larger organizational structure, and any anticipated reorganization?
5. Intended Use of the Offering Proceeds
Disclose the principal reason for the offering, the purposes for which the proceeds of the offering are intended to be used, and the approximate amount intended to be used for each such purpose. Examples of expenditures include: payroll, rent, utilities, equipment leases or purchases, legal fees, inventory acquisition, payment of notes, advertising, insurance, supplies and payments to be made immediately to officers, directors, a registered Illinois crowdfunding portal, or registered general securities dealer.
6. Officers and main Shareholders
The identity of the executive officers, directors, and managers, including their titles and their prior experience and the identity of all persons owning more than 20% of the ownership interests of any class of securities of the company. Provide titles, LinkedIn profiles and any information you consider relevant.
7. Securities Offered
What does your offering involve? Common stock, preferred stock, limited partnership interests, promissory notes, or interests in a profit sharing agreement?
8. Describe the Securities that are Offered
Disclose the attributes, risks, and rights associated with the securities being offered that are consistent with the statute under which your company was organized and your governance documents. Also disclose any restrictions on dividends or other distributions and the lack of any rights in your securities typically granted to securities of the type offered.
9. a. Outstanding Securities
Outstanding shares or or issued shares include stock owned by the all external shareholders as well as restricted shares owned by the company's officers and employees. The number of outstanding shares can be found on your company's balance sheet as " Capital Stock." You might ask your accountant for help on this one.
9. b. Amount of Offering
10. % of Ownership Offered in this Campaign
Include the valuation amount.
You can calculate the value of your company either by using our third party evaluators Zacks CF Research or other valuation providers or your CPA.