Creators are the artists and entrepreneurs fueling the world of innovation. Promote your latest project to fellow artists and entrepreneurs and let the ease of our platform allow your creativity to run wild. Block out the noise of other platforms and focus on your dreams with the AMAG community.
Sell Products & Services
Post a project, list your price, and sell on AMAG! While digital downloads are not yet allowed to be posted, pictures representative of the project, links to your site and social media, and detailed descriptions can help family, friends, and supporters get a feel of your company or brand. AMAG applies a 6% fee to the funds collected for creators. Stripe, our payments processor will also apply payment processing fees (roughly 3-5%).
What is crowdfunding?
Crowdfunding harnesses the power of social networks and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals. With crowdfunding, you can help a friend or help an entire community. You can do everything from pay for your own equipment to fulfill an artist’s dream of performing around the world—and so much more.
Donation-Based Crowdfunding Campaign:
AMAG’s fundraising tools make it easy for artists and entrepreneurs to create, share, and raise money for campaigns. Support people or causes you care about by simply donating to a project, and writing it off on your taxes!
Rewards-Based Crowdfunding Campaigns:
A project is a finite work with a clear goal that you’d like to bring to life. Think albums, books, or films. The funding goal is the amount of money that a creator needs to complete their project. A creator is the person or team behind the project idea, working to bring it to life. Backers are folks who pledge money to join creators in bringing projects to life. While AMAG does allow creatives to buy and sell products and services, we also allow backers to support a creative process. Rewards are a creator’s chance to share a piece of their project with their backer community. Typically, these are one-of-a-kind experiences, limited editions, or copies of the creative work being produced.
Backers that support a project on AMAG get an inside look at the creative process, and help that project come to life. They also get to choose from a variety of unique rewards offered by the project creator. Rewards vary from project to project, but often include a copy of what is being produced (CD, DVD, book, etc.) or an experience unique to the project.
Many backers are rallying around their friends’ projects. Some are supporting a new effort from someone they’ve long admired. Some are just inspired by a new idea, while others are motivated to pledge by a project’s rewards — a copy of what’s being produced, a limited edition, or a custom experience related to the project.
Backing a project is more than just pledging funds to a creator and is unlike purchasing items from a shop. It’s pledging your support to a creative idea that you want to see exist in the world.
Project creators keep 100% ownership of their work, and do not offer equity or financial returns.
Equity-Based Crowdfunding Campaign:
Let’s examine the basic framework for 506(c) and crowdfunding:
You can think of 506(c) offerings and crowdfunding as cousins. Both aim to make it easier for companies to tap into a diverse network of investors, and both harness the potential of new technologies to raise capital quickly and cheaply.
But, there are some crucial differences between the two. A basic guideline is that, in most cases, a 506(c) offering has fewer restrictions than crowdfunding, except when it comes to who can invest, where the rules are stricter for a 506(c).
1. Who can invest?
This is the one area where crowdfunding offers a more flexible opportunity to cast a wide net. 506(c) offerings must be made only by accredited investors, whereas crowdfunding ventures are free to accept backing from nonaccredited investors as well.
On top of that, Rule 506(c) investors must be verified as accredited investors. Companies can use a third party service, such as Verify Investor, or take the risk of performing the accreditation in house. The trouble is that investors are often reluctant to provide sensitive financial information about themselves to a company they’re agreeing to back, so going with a third party service is often the quickest and easiest way to get past the verification hurdle.
2. How much capital can you raise?
This is where crowdfunding’s most significant limitation comes in. While 506(c) offerings have no limit on their potential capital raise, crowdfunders are restricted to a yearly cap of $1 million. While this often works for musicians, authors, and some businesses, it may not be useful for a business that needs a lot of capital up front in order to get going.
3. Is advertising allowed?
Here’s something that might surprise you: while 506(c) offerings are marketed and advertised freely now, the rules overseeing crowdfunding solicitation are much more restrictive. General advertising is severely limited, and primary disclosure has to occur on an established “funding portal,” meaning one of the crowdfunding websites we’ve all seen on our social media feeds.
4. What is legal now?
506(c) is legal now; crowdfunding is kind of legal. The SEC has yet to put forth final recommendations, and only 11 states so far have legalized equity crowdfunding for businesses. Even so, those states do not allow the use of social media to attract investors, since the internet is obviously not restricted to state lines. Although there is a suggested framework in place, equity crowdfunding (unless it’s through Rule 506(c) to accredited investors) is largely not yet legal.
What is right for your company?
A range of factors come into play when deciding whether to go with 506(c) offerings or crowdfunding.
- The size and scope of your company: Is $1M enough for you, or do you need more than that to get started? If you need more money up front, you should go with the 506(c) offerings. If your financial needs are less at the beginning, consider crowdfunding.
- You product or service and its audience: Remember, your audience also includes your potential investors. Are they likely to have the financial security to be accredited? If so, go with 506(c). If you’re looking for a wider variety of investors, crowdfunding may be more appealing.
- Your timeline: Do you need capital now, which would require you to use Rule 506(c), or can you wait as money trickles in?
- Legality: Remember that crowdfunding still involves some legal pitfalls regarding how much can be invested. Accredited investors have a sense of the risk they are taking when they invest, whereas small amount investors on a crowdfunding site may not. Consider the potential for backlash in your plan going forward, and remember to play it safe and consult your securities attorney.
Online Public Offerings on AMAG
Small OPO | Offerings up to $1.07M that are open to all types of investors and operate under Regulation Crowdfunding.
Large OPO | Offerings up to $50M that are open to all types of investors and operate under Regulation A+.
Select OPO | Offerings that are open only to accredited investors and operate under 506c.
Prior to making any investment decision, it is upon you to make your own evaluation of the merits of any particular securities offering in relation to the high level of risk inherent in investing under Regulation Crowdfunding.
IMPORTANT MESSAGE: AMAG Crowdfunding is a not a broker-dealer or investment adviser. Anais Magazine (AMAG) is a funding portal soon to be registered with the US Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). AMAG is not making any recommendation or giving any advice with respect to any company or offering discussed in this communication.
Companies can raise any amount on AMAG from accredited investors, who are individuals making over $200,000 per year ($300,000 for married couples), or have a net worth over $1 million (excluding primary residence).
Companies can raise up to $1,070,000 from the general public in a 12-month period, through a Reg CF round. Only capital raised from Reg CF investors counts towards the limit. Companies may raise more from accredited investors beyond this limit in the 12-month period. Companies may also raise up to $50 million from the general public in a 12-month period through a Reg A+ offering.
These limits also apply if you are connected to another entity that shares some form of control with your company (such as a parent company). For example, if your company is controlled by another company by contract or by stock ownership, any money raised by the owning company through Reg CF or Reg A+ counts towards the respective limit, and vice-versa if you have control or common control of another entity.
Yes, any funding over the target offering amount is called an oversubscription. You can accept oversubscriptions, but you may not accept any funding over your maximum offering amount.
You are required to disclose how much you are willing to accept in oversubscriptions, how you would allocate the oversubscriptions, and the intended purpose of those additional funds.
Reg CF investors purchase AMAG CF Preferred Stock and Reg D investors purchase AMAG Seed Preferred Stock. They are the same price, but have different investor rights.
AMAG CF Preferred Stock is held in book entry format, which means the shares are recorded electronically, and the company will not send a paper stock certificate. These stockholders have basic information rights, meaning they receive annual updates. This stock has liquidation preference, so if the company liquidates its assets, these stockholders will be paid out before common stock.
AMAG Seed Preferred Stock, which is also held in book entry format, comes with more benefits. These stockholders have voting rights in the company, the right to retain proportionate ownership in future financing rounds, and the option to convert to common stock. These stockholders also have basic information rights, and may request unaudited financial statements if available.
There’s no formula for a great video. Try to capture the imagination and compel investors to read the rest of your offering. When you make a video, we suggest you introduce yourself and your company and discuss the problem you are solving, your growth, the market, and why you’re raising money.
Format should be H.264 for the video and AAC-LC for the audio as a MOV, MPEG, AVI, or MP4 file. It must be 1GB or less with a width of 1280 pixels. Don’t use any copyrighted music without permission.
Be passionate, enthusiastic, and compelling, but make sure we review your scripts before you record anything. Within guidelines, with which we can help, stand out. And have the courage to put yourself on camera – investors want to invest in people as much as in great ideas.
When your company raises capital on AMAG, you must follow FINRA and the SEC’s (depending on the offering type) guidelines for how you can market your offering on external channels, such as on social media and in cold outreach emails. Please be aware that FINRA and the SEC have rules about how you may communicate.
For companies using Reg CF, until the SEC accepts your Form C filing, you may not communicate any information about your offering. The SEC prohibits any “pre-shopping” or communication about your offering, before a Form C acceptance. You may, however, go about your normal course of business.
Once the SEC accepts your Form C filing, any information you publish, and all of your publicity, will generally be considered an “offer.”
AMAG encourages all issuers to review FINRA Rule 2210 and SEC Rule 204 of Regulation Crowdfunding prior to initiating an offering to ensure understanding of what they can and cannot say or do.
Raising capital is a full time job, and it’s just as much about building trust with your potential investors as it is about your business model. Your message should aim to explain your company as clearly as possible.
AMAG requires companies to have an articulated promotional strategy for the duration of their fundraising rounds. We recommend that you work with one of our crowdfunding agency partners who have a proven track record helping companies prepare and execute successful crowdfunding campaigns, but also come to us with questions about meeting regulatory standards.
Companies fundraising on AMAG set their own investment terms. You can choose to either use one of our templates below or bring your own documents. Our templates include: AMAG CF Preferred Stock, AMAG Seed Preferred Stock & SAFE.
Companies preparing their own investment documents have used securities such as Revenue Participation Notes and Common Stock. These documents should be drafted by the company’s own law firm.
Reg CF investors purchase AMAG CF Preferred Stock and Reg D investors purchase AMAG Seed Preferred Stock.They are the same price, but have different investor rights.
AMAG CF Preferred Stock is held in book entry format, which means the shares are recorded electronically, and the company will not send a paper stock certificate. These stockholders have basic information rights and receive annual updates. AMAG CF holders have a liquidation preference, so if the company liquidates its assets, these stockholders will be paid out before common stock.
AMAG Seed Preferred Stock, which is also held in book entry format, comes with more benefits. These stockholders have voting rights in the company, the right to retain proportionate ownership in future financing rounds, and the option to convert to common stock. These stockholders also have basic information rights, may request unaudited financial statements if available and have a liquidation preference over common stock.
AMAG Seed Preferred Stock (Reg D) Conversion Rights
- Any investor may convert their shares of AMAG Seed Preferred stock, at any time at their discretion, into common stock at a 1:1 ratio. Common stock has voting rights, but does not have any liquidation preference.
- All AMAG Seed Preferred shares will automatically convert into common stock if the Company completes an initial public offering (IPO), or if the holders of a majority of AMAG Seed Preferred shares agree to convert. An automatic conversion event results in elimination of the AMAG Seed Preferred preferences.
AMAG CF Preferred Stock (Reg CF) Conversion Rights
- The AMAG CF Preferred shall have no optional conversion rights.
- Each share of AMAG CF Preferred will automatically convert into Common Stock upon (a) the closing of a firmly underwritten public offering of Common Stock or (b) the election or consent of the holders of a majority of the then outstanding shares of the Preferred Stock (voting together as a single class on an as-converted basis). The conversion rate will initially be 1:1, subject to customary adjustments.
AMAG Shareholder Services makes managing investors easy and convenient.
Reg CF investors hold their shares in book-entry format through AMAG Shareholders Services and do not count toward the threshold that requires an issuer to register its securities with the SEC under Section 12(g) of the Exchange Act. A company must be also current in its annual reporting obligation, and have less than $25 million in assets.
We maintain accurate shareholder records and manage investor relations and record keeping through proxy and mailing services.