Every raise starts with a private stage, giving selected investors the opportunity to invest before the raise is opened more broadly. If the private stage is successful, the company can proceed to a public stage and open the investment to a wider group of investors. A raise cannot skip the private stage and go directly to a public stage.
Private stage
During the private stage, founders can invite investors they have already connected with and who have expressed interest or made commitments to the raise. Up to 200 investors can be whitelisted, with a maximum investment amount set for each investor.
Commitments are taken in the order they arrive, against a fixed total for the round. If you are invited later in the process, part of that total allocation may already have been committed by other investors, so you may not be able to commit the full amount you were originally given.
The round runs until the deadline the founder sets and displays on the listing. If the funding goal isn't reached, the round doesn't proceed, and every investor claims their funds back.
Public stage
Public stage raises are open to any verified investor and run to their announced deadline. This stage can become oversubscribed.
When the round closes, the company reviews commitments and confirms final allocations for investors. Any amount you committed above your final confirmed allocation becomes available for you to claim back.
Minimum investment
Spring does not set the minimum investment amount by default. The company raising funds can set a minimum investment threshold for the private stage, the public stage, or both, when configuring the terms of the raise.
Need more help?
We’ve aimed to cover everything here, but if your question isn’t answered — or you’ve spotted something that needs correcting — contact us at team@usespring.io
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