For specific questions about how our process works and who we partner with please check out our FAQ below.
For all other inquiries, contact firstname.lastname@example.org.
The Securities and Exchange Commission regulations currently require that all investors in the types of deals that Quire promotes be U.S. Accredited Investors - the full SEC definition can be found here.
Quire, like all other investment platforms, is required by the SEC to take reasonable steps to verify the accreditation status of potential investors.
When you make an investment on Quire, you will be asked to submit documentation that demonstrates you are an US-accredited investor. Quire partners with EarlyIQ to verify your accreditation status.
For individuals, an accredited investor is defined by the SEC (the full definition can be found here) to be a person who has an individual Net Worth, or joint Net Worth with the person’s spouse, exceeding $1 million, excluding the value of their primary residence. A person is also considered accredited if his or her Income exceeds $200,000 in each of the two most recent years or joint Income with a spouse that exceeds $300,000 for those years, as well as a reasonable expectation of the meeting the Income requirements in the current year.
The easiest way to verify your accreditation status is by having your lawyer, CPA, or accountant complete a verification form for you, and upload it through EarlyIQ, our accredidation provider.
If you are unable to supply a 3rd Party Verification Form, you will be asked to submit documentation depending on how you are investing.
If you are an individual accrediting by Income, you will need to provide W-2s, 1040s, 1099s, or K-1 Forms showing income exceeding $200,000 for the previous two years. If you are accrediting jointly with your spouse, please submit jointly filed tax forms showing income exceeding $300,000.
If you are an individual accrediting by Net Worth, you will need to submit a bank or brokerage statement dated within the last three months that exhibits at least $1M in assets, excluding the value of your primary home. You will also need to submit a credit report exhibiting liabilities. Quire needs to ensure that investors have no hidden debt that would lower their asset worth below $1 million. If there is any debt shown in the credit report that lowers the Individual’s assets to below $1 million, then SecondMarket will need to see proof of additional assets to push net worth over $1 million.
Quire does not currently accept investments from international investors. For our purposes we define any individuals or entities without an American Tax ID number as "international".
Quire currently accepts investments from both individuals and entities (LLCs/LPs and Trusts). Entities must prove accreditation by different standards- check those out here.
The easiest way to verify your accreditation status is by having your lawyer, CPA, or accountant complete a verification form for you:
If you are accrediting as a Trust, you will need to submit a bank or brokerage statement, dated within the last three months, that exhibits Trust assets equal to or exceeding $5 million.
If your Trust cannot prove requisite asset worth, but each Grantor in the Trust is individually accredited, Quire can verify the Trust’s accreditation status. Each Grantor needs to submit accreditation documentation — see 'How do I verify my accreditation status as an individual investor?'.
If you are accrediting as an LLC, you will need to submit a bank or brokerage statement, dated within the last three months, that exhibits assets equal to or exceeding $5 million.
If your LLC cannot prove requisite asset worth but each Beneficiary Owner of the LLC is individually accredited, Quire can verify the LLC’s accreditation status. Each Beneficiary Owner needs to submit accreditation documentation — see 'How do I verify my accreditation status as an individual investor?'.
Prior to the JOBS Act and the introduction of general solicitation, companies seeking private investment were only required to have a "reasonable belief" that their investors accredited, typically relying on an attestation from the investor to verify accreditation. Once the JOBS Act was enacted, any company seeking public investment needed to adhere to a higher standard of accreditation, taking "reasonable steps" (see SEC guidelines here to verify the accreditation status of all investors). To satisfy these requirements and protect both our users and the companies working with us, Quire partners with SecondMarket, a registered broker-dealer, to review and verify the accreditation status of all our investors.
Accreditation typically lasts 60–90 days from the date of the earliest qualifying document that you provide.
If using the net worth standard to verify accreditation, individuals may be asked to submit a credit check. Quire needs to ensure that investors have no debts other than primary mortgages that would lower their asset worth below $1 million.
The minimum investment size is determined by each company on Quire. It is often around $2,500 per investment.
The investment closing process typically begins once the company’s fundraising goals have been met. The entire process typically lasts two to four weeks.
Investors participating in an Quire round will buy stock in a special purpose vehicle (SPV), an LLC, created by Quire for the sole purpose of investing in a specific company. When you invest on Quire you will hold shares in the LLC and not directly in the specific company itself. Quire will be the manager of the LLC, and will hold the voting and other rights of the LLC. Please review the deal documents for specifics around the investment into the SPV.
When you invest on Quire, you will be charged a 3% fee (max of $500), which is in addition to your principal investment amount. There will also be a 10% carried interest charge that is withdrawn from distributions after the repayment of your principal.
Investing in early-stage private companies is about as risky as investing gets. You should expect most companies to fail, in which case investors will lose all of their invested capital. Do not invest any money you cannot comfortably afford to lose.
Quire works with companies that have engaged communities, great products, influential founders, and important missions. Each company is also backed by one or more reputable VC firms.
Companies interested in joining Quire can contact email@example.com.
When someone invests in a company through Quire, they actually invest in an LLC we will have created specifically for the company’s Quire investors. The LLC will then invest in the company, and will represent just one entry on the company’s cap table. The LLC will be managed by Quire, and will invest on the same terms as one or more of the VCs investing in its round.
Quire collects a $5,000 fee, which is collected from the total amount raised when the campaign ends.
All of the voting and information rights are retained by the Manager of the Fund, Quire Communities Inc. However, we strongly encourage founders and CEOs to keep Quire investors up to date the same way they would inform their institutional investors. Quire investors can become very strong advocates and evangelists for your products and its beneficial both for you and them to form a strong relationship.
Yes. In a private placement, you determine who receives invitations to invest. In a general solicitation round, you may review the list of investors who have made reservations. While we encourage founders to honor investments on a "first funds in" basis, there are instances when a founder may not want a particular investor to invest.
All investment opportunities on Quire are "sponsored" by a top-notch VC firm. Sponsors will lead investment opportunities for companies fundraising on Quire. This often means helping to market the investment opportunity, setting investment terms, and charging a carry to the SPV.
The K-1 is a tax form issued for an investment in a partnership, in this case a Quire Round. The partnership uses the K-1 to report your share of the partnership's income, deductions and credits. It is prepared individually for each partner, rather than being a financial summary for the entire partnership.
If you invested in a Quire Round, you will receive a K-1 for that investment in the subsequent and following tax years until the SPV is closed.
We recommend that you provide the K-1 to your accountant. You can also find detailed instructions from the IRS here.
It will be available from the 'View Documents' link at the bottom of the investment card in your dashboard.