Frequently Asked Questions

Want to learn more about crowdfunding? Well, you've come to the right place! Here we answer the most common questions people ask on the topic, and explain some of the important rules governing these investments.

Questions about GridShare

What is GridShare?

What types of investments are on GridShare?

What Regulatory Exemptions do Issuers on GridShare use?

How does GridShare make money?

Who is GridShare?

GridShare is the brainchild of Jack Jacobs, a cleantech lawyer who saw a need for crowdsourced capital for his clients. He’s assisted by Jon Norling, an energy lawyer who assists clients in developing and financing renewable energy projects.

Questions on Regulation Crowdfunding

  1. What is "Equity Crowdfunding"?
    • "Equity" is simply ownership in something. In the financial world, an equity ownership is represented by “securities,” which are financial instruments representing an interest by the investor (also known as the “holder”) in a company or sharing agreement. The company selling securities is called the "Issuer."
    • In the US, securities are regulated by the Securities and Exchange Commission, which has adopted Regulation Crowdfunding pursuant to the Title III of the JOBS (or Jumpstart our Business Startups) Act.
    • Unlike “donation crowdfunding,” in which you only receive a reward in exchange for your donation, equity crowdfunding allows investors to receive securities in exchange for an investment.
    • Under Regulation Crowdfunding, offerings are limited to $1,070,000 or less of total investment.
    • GridShare.com is a registered “funding portal” authorized to operate an online investment platform for Regulation Crowdfunding (a.k.a "Title III") offerings.


  2. How Much May I Invest in a Crowdfunded Offering?
    • Because of the risks involved with securities-based crowdfunding, you are limited in how much you can invest during any 12-month period in these transactions. The limitation on how much you can invest depends on your net worth and annual income. Following are the inflation-adjusted investment limits:
      • If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the lesser of your annual income or net worth.
      • If both your annual income and your net worth are equal to or more than $107,000, then during any 12-month period, you can invest up to 10% of annual income or net worth, whichever is lesser, but not to exceed $107,000.


  3. The following table provides a few examples
  4. Annual Income Net Worth Calculation 12-month Limit
    $30,000 $105,000 greater of $2,200 or 5% of $30,000 ($1,500) $2,200
    $150,000 $80,000 greater of $2,200 or 5% of $80,000 ($4,000) $4,000
    $150,000 $107,000 10% of $107,000 ($10,700) $10,700
    $200,000 $900,000 10% of $200,000 ($20,000) $20,000
    $1.2 million $2 million 10% of $1.2 million ($120,000), subject to cap $107,000

    Huh? What does that mean?



  5. What types of offerings are on GridShare?

  6. Users will find both equity and debt offerings on GridShare. Let’s start with equity:

    What is "dilution"? That sounds bad.

    What is a "debt security" and why should I care?

    What are the risks of equity and debt?

    Sounds awful. Why would I sign up for that?

    What information will the Issuer provide to help me make a decision?

    Following completion of an offering, will there be any ongoing relationship between GridShare and the issuer?



  7. What is the Process for making an investment on GridShare?
  8. There is an eight-step process for making a Regulation Crowdfunding investment on GridShare.com, as follows:

    1. Users browse offerings.
    2. When a user finds one s/he likes, the user will review the information about the issuer and download the relevant information to learn more about the opportunity.
    3. Once a user has done her/his homework and has decided to make an investment, the user will click the “Invest Now” button and be directed to a third-party escrow company that will hold investor’s funds in escrow until the offering deadline. An Issuer may cancel its offering, and will return investor funds held in escrow back to the investors.
    4. The offering must be up a minimum of 21-days before it can close.
    5. If, by the offering deadline, the Issuer meets its target funding amount, the offering will close and investor funds will be released to the Issuer.
    6. If, by the offering deadline, the Issuer has not met its target funding amount, the offering will be cancelled and the investors’ funds will be returned.
    7. Investors can cancel their investment up to 48-hours prior to the offering deadline.
    8. If the Issuer makes any material changes to the offering, it must notify investors and have them reconfirm or cancel their investments.


  9. Reselling Purchased Securities
  10. If I purchase shares, notes or bonds on GridShare.com, can I sell these to someone else?



  11. Information to be Provided by Issuers
  12. If I invest, what information can I expect from the Issuer?



  13. Know what you’re doing
  14. Anything else I need to know?