ProFounder offers two products: Private Investing and Public Investing. With Private Investing, entrepreneurs can raise capital from friends, family, and other

ProFounder offers two products: Private Investing and Public Investing. With Private Investing, entrepreneurs can raise capital from friends, family, and other community members who they already have a relationship with and these people can get unlimited financial upside based on a % of revenue. This is a security. Given that it's a security, we help entrepreneurs easily comply with all necessary federal and state regulations that apply. Compliance is not too challenging because all of the entrepreneurs are raising less than $1M from people they have a relationship with, so the security has exempt status. And you're right - there is no public solicitation. With Public Investing, anyone in the general public can invest. This is not a security as investors do not have financial upside -- through revenue share agreements, they are repaid their principal and if they are repaid before the investment term is up, their share of the revenues for the rest of the term goes to a non-profit. Given that this is not a security, entrepreneurs can market it as widely as they'd like. I hope that helps clear up some of the confusion. Glad to hear that you're also a securities law buff! Dana ProFounder Co-Founder