The forthcoming Fundrise IPO was revealed last week as a public filing under “Rise Companies” was uncovered. Today, the Form 1-A has been updated revealing additional information regarding the self-crowdfunding campaign under Reg A+.
According to the document, Fundrise will be offering up to 2 million of Class B common stock at $5 per share. The offer is expected to commence shortly. The offer seeks a minimum raise of $1 million and a maximum raise of up to $10 million. Investors must purchase a minimum 200 shares or $1000 to participate in the offer. Initially, only investors that have previously participated in an offer will be eligible to purchase Fundrise shares.
- The price per share shown was arbitrarily determined by [the] board of directors and will apply for the duration of this offering.
- This is a “best efforts” offering. [Fundrise will] not draw down on investors’ funds and admit investors as stockholders until [they] have raised at least $1,000,000 in this offering.
- Until the minimum threshold is met, investors’ funds will be revocable and will remain at the investors’ bank/financial institution. If [they] do not raise $1,000,000 within 12 months, [Fundrise] will cancel the offering and release all investors from their commitments.
- Investors will not pay upfront selling commissions in connection with the purchase of the Class B Common Stock.
- All expenses incurred as a result of this offering, which are estimated to be approximately $500,000, will be borne by [Fundrise]. Purchasers of [the] Class B Common Stock will not be directly responsible for costs incurred as a result of this offering.
The updated Form 1-A is available to view here.
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