Our purpose. To empower women to invest in women-led developments or the ecosystem of women entrepreneurs who are advancing women-led developments through case studies, education and discussion.
Not everyone has equal investment opportunities. Until 2016, the opportunity to invest in companies or real estate was only available to about 8% of the adult population of the US who are considered accredited investors. Accredited investors include those who have net worth (without their primary residence) of at least $1M, or have earned at least $200,000 per year for 3 years. Of that 8%, a minority are women.
But in 2016 the SEC rolled out a new investment regulation called Regulation Crowdfunding (Reg CF). It is their first attempt to democratize investment. Through this rule developers can raise funds from anyone who is 18 years and older. Often investment minimums are lower making this rule a tremendous first step in investment activity for many.
Reg CF provides the perfect opportunity to educate women on how to invest in other women.
Group investments are not possible through Reg CF, so the creation of a fund is not possible. Instead the Investor Collaborative will take on an educational role, sourcing projects that fit the WDC’s criteria, providing an opportunity for developers to present their projects, and providing a private room to discuss projects amongst members. It will be up to each member of the Investor Collaborative to choose whether they want to make an investment.
The Investor Collaborative will source women-led real estate projects available for investment by everyone on a multitude of funding portals such as Republic.co, StartEngine.com, Wefunder.com, SmallChange.co and other such platforms. There are now over 70 funding portals registered with the SEC, although some are not active.
Programs will be one hour long and structured to allow for:
- A 15-minute developer presentation
- 15-minute developer Q & A
- 30-minutes of discussion amongst the group covering finances and terms of the offering.
- Other 60 minute programs will present user-friendly information and education about how and why to invest in real estate.
Rules to remember:
Under Reg CF, developers may not present the “terms” of their offering. These terms include the amount they are trying to raise, the return they are offering, the closing date of the offering, whether they are offering debt or equity and the value of each share. Other than these terms, developers can provide a full description of their project, the cost, the scale and market conditions.
Developers are required to point investors back to information that is publicly available. All terms of an investment offering are required to be posted on the offering listing page, and all questions directed to the developer regarding these terms must also be posted there. The SEC wants everyone to have the benefit of seeing all questions asked and answered. We must strictly follow these rules and will require developers who are presenting to sign an agreement to this effect.