Fundraising through Xorro offers you, the Founder, a unique opportunity to engage your fanbase in your journey, and raise capital via a tokenized revenue-sharing model. Before launching your offering, Xorro’s Founder Onboarding team will work closely with you to navigate a few regulatory and operational steps required to ensure compliance and build trust with your potential investors (i.e. your fans). This article provides an overview of the key onboarding steps involved for your first Xorro listing:
The first step is designed to verify the legitimacy of your business and ensure that no bad actors are involved. This is a critical step in building trust with both the platform and potential investors. It ensures that your business is compliant with anti-money laundering (AML) regulations and reduces the risk of fraudulent activity. Key Components of these checks are:
BUSINESS VERIFICATION
Provide legal documentation such as your Certificate of Incorporation, Articles of Organization, or other proof of business registration.
OWNERSHIP STRUCTURE
Disclose the ownership structure of your business, including details about key stakeholders and beneficiaries.
BACKGROUND CHECKS
Founders and key executives may undergo background checks to ensure there is no history of fraud, financial crimes, or other red flags.
FINANCIAL DILIGENCE
Provide previous years’ financial statements.
LITIGATION RISK
Declare any previous, existing or anticipated litigation that the company or its key members are involved in.
Tokenized revenue-sharing offerings are considered regulated securities under U.S. law. As such, you must adhere to guidelines set by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). When designing your marketing campaign, you need to provide clear and transparent disclosures about the risks associated with your offering, as well as the terms of the revenue-sharing agreement. Ensuring compliance not only protects your business, but also builds credibility with investors.
For more information on FINRA guidelines:
https://www.finra.org/rules-guidance/guidance/reports/2022-finras-examination-and-risk-monitoring-program/communication-with-public
When raising funds through your fanbase, your listing will likely be subject to Regulation Crowdfunding (Reg CF) exemption and additionally one or two more (Regulation D or Regulation S), depending on investor type and the raise amount. If applicable, our Onboarding Team will guide you to prepare an Offering Memorandum documentation to be filed with the SEC (this needs to be done prior to listing your offering).
For more information on Form C Filing: https://www.sec.gov/files/formc.pdf
Fundraising via Xorro can be a game-changer for online business founders, but it requires careful preparation and adherence to regulatory requirements. By working with our Creator Onboarding Team on the key steps outlined above, you can be ready for a successful and compliant Offering! We are here to guide and help you focus on what matters most: growing your business and engaging your community.
For Private Placements, offering of securities are only made through the private placement memorandum and associated offering documents for each offering. These private placement memorandums contain specific details of fees paid to both Xorro and TTC and should be reviewed in detail before investing. No communication by Xorro, TTC, or any of their respective affiliates through this presentation or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice.
For Regulation Crowdfunding Offerings, this Presentation is not a solicitation of money or any other consideration. If any money or other consideration is sent in response it will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and then only through Tritaurian using the Xorro platform. Any indication of interest made by a potential purchaser involves no obligation of commitment of any kind. Certain information contained herein constitutes “forward-looking statements,” which can be identified by future dates or the use of terms such as “may,” “will,” “should,” “could,” “would,” “potential,” “continue,” “expects,” “anticipates,” “projects,” “future,” “targets,” “intends,” “plans,” “believes,” (or the negatives thereof) or other variations thereon or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, some of which are beyond the control of TTC. Actual results, dates, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. The forward-looking events discussed in this Presentation may not occur. TTC undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained herein is not intended to be relied upon as the basis of an investment decision, and is not, and should not be assumed to be complete.
Certain uses of third-party company names and logos are for illustrative purposes only and do not imply partnership, affiliation, or endorsement. All such intellectual property belongs solely to their owners and not to TTC. None of the information contained herein has been filed with the U.S. Securities and Exchange Commission, except in the event of a Regulation CF or Regulation A+ offering, any securities administrator under any securities laws of any U.S. or non-U.S. jurisdiction or any other U.S. or non-U.S. governmental or self-regulatory authority. No such governmental or self-regulatory authority will pass on the merits of TTC or the adequacy of the information contained herein. Any representation to the contrary is unlawful. By accepting this presentation, each recipient agrees to be bound by the foregoing terms.
Several of the products and services described herein require TTC to obtain various regulatory licenses. TTC is in the process of securing certain licenses in additional to the licenses that it already has. Any product lines will only be launched and offered when full compliance and licensure is achieved. Moreover, the products and services described may not be eligible for users in some states or countries or suitable for all types of users. Prospective users should inform themselves as to the legal and compliance requirements and tax consequences and risks within the countries of their citizenship, residence, domicile and place of business. This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by Tritaurian or any other third-party regardless of whether such security, product or service is referenced in this brochure. Furthermore, nothing in this Presentation is intended to provide tax, legal, or investment advice and nothing in this Presentation should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. TTC does not represent that the securities, products, or services discussed in this Presentation are suitable for any particular investor. You are solely responsible for determining whether any investment, investment strategy, security, or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal, or tax situation.
