How to Navigate EquityMultiple’s Investment Statuses
Looking through EquityMultiple’s current and past investment opportunities, you’ll see a few different status badges attached to different offerings. As you move through the investment process on any particular offering, your investment will also move through several statuses. This brief article explains how we define the status of each of your investments, each offering (investment opportunity) as a whole, and how the two are related.
Before delving into the statuses of offerings you see on the EquityMultiple platform, let’s discuss the various statuses your investment may pass through during the course of the investment process.
- Indication of Interest: You have indicated interest in the offering, with an associated dollar amount you intend on investing. This is a non-binding indication of interest; while we do hope you make indications of interest with serious intent, there is no contractual obligation to move forward, and you can cancel at any time. Likewise, your indication of interest does not reserve your spot in an offering.
- Signed: You have thoroughly reviewed and signed the subscription documents, which are available on each offering page. In spirit, this is a commitment to follow through with the investment, certifying that you have thoroughly reviewed and considered all risk factors associated with the investment. This reserves your spot in the offering, though your investment is not yet finalized.
- Funded: Your investment enters ‘funded’ status once funding has been received for your investment, which can be carried out via ACH (bank to bank transfer), wire transfer, or check. Our Investor Relations team will provide notification as to when you must carry out funding in order to take part in any given offering. Once you have funded your investment, we will provide updates on the progress of the offering – including distribution timing – on your My Activity feed.
- Waitlisted: Your investment will be placed in a waitlist status when you indicate interest in an offering for which indications of interest already total 100% or more of EquityMultiple’s target allocation. Waitlisted investments will not be able to proceed to further stages of investment unless additional space in the offering is made available, usually because investors drop out or EquityMultiple is able to negotiate additional allocation with the sponsor. We’ll discuss more below.
Please note that we will never accept more than 100% of our target allocation in any offering such that it dilutes the position of investors in the offering. In some cases, we may work with the sponsor or lender to increase our allocation, though not such that it dilutes the position of investors who have already finalized their investment.
You may notice various color-coded tags applied to active and past offerings on EquityMultiple’s Invest Page. These tags are meant to show where the offering is along its path from active funding to realization.
This status means that we are still actively raising capital for the offering, and have not yet reached our fundraising goal. This means that any new investors can make an indication of interest and sign documents in order to reserve space in the offering.
You will notice a progress bar with a percentage on each offering page and offering card, indicating how close the offering is to fully-subscribed. This is a real-time figure, and monitoring it over time will give you a sense of how quickly the offering is filling up. Keep in mind that, once you indicate interest, your space will not be held until you sign subscription documents.
Active – Private
This status means that we are actively raising capital for the offering, and have not yet reached our fundraising goal. This status means that the investment is only available to a limited group of investors – it is available only to users with complete investment accounts.
This status means that investors can indicate interest, but there is no allocation currently available as we are still preparing the offering for investment. As of this writing, this status has never been used.
Offerings in waitlist stage have already reached the target amount in indications of interest. Any subsequent indications of interest will be placed on a waitlist and, should any preexisting investors drop out, will be admitted into the offering in order of indication of interest.
Usually this status also means that we are working to secure funding from investors and deliver the total capital raised to the sponsor imminently. If you have indicated interest in an offering that is in ‘waitlist’ but has not funded yet, seeing this status is a good indication to move forward and fund your investment. We do our best to communicate closing timelines and give investors ample opportunity to proceed with funding at a comfortable pace. However, in the event of a high-demand offering and tight closing timeline, we may need to quickly cycle through a waitlist in order to ensure that investors who are enthused with the offering are able to participate, and that we hit the target allocation.
If you have questions about the likely timeline for closing, and the status of your investment, we’re always happy to provide clarification.
Any offering in ‘Funded’ status has completed funding and is not accepting new investments. You can still view the offering page of most funded offerings to get a better feel for what kinds of investment opportunities EquityMultiple pursues and to ask questions – these investment opportunities are presented under ‘Funded Offerings’ on the Invest page.
These offerings are paying regular distributions to investors. They are a subset of ‘Funded’ offerings; they are not open for additional investment.
Again, you are free to read through details on the offering page of a funded ‘CashFlowing’ offering and ask any questions you have.
Like investments that show a ‘Cash Flowing’ status, the ‘Exited’ status indicates the progress of a closed investment: these investments have gone full cycle, and returned principal to investors in addition to any earnings.
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