Required: After completing a successful equity crowdfunding round, there are several legally required disclosures companies must make to their investors.
All corporations are required to hold a shareholders meeting at least once a year. This is irrespective of whether you have 2 shareholders or 2,000, public, private, it doesn't matter. We recommend you host this meeting virtually and invite all your shareholders to attend.
If you raise over $250,000 you are required to provide Annual Notice to Reader Accountant prepared financial statements to your shareholders within 120 days of your fiscal year end.
You are also required to include an update on the use of the proceeds of the raise until all the funds from the raise are spent.
You are also required to notify investors if there a key change to the business (change of industry, change of control, closure of the business).
Recommended: Equivesto strongly recommends that companies raising through our platform reach out to their investors with an update on a quarterly basis (4 times a year, every 3 months). This keeps them informed and engaged in your progress and how they can help you.
Don't forget, you aren't getting only hundreds of new shareholders but, if prepared and educated properly, hundreds of new salespeople.