What we do
Take a look at our Cal-X Crowdfund Connect software ready to go active when President signs bill!
Preview of New Software
How we work…
STEP 2 – Complete Cal-X EquityNet Business Plan Analysis and get your probability of survival score. Cal-X will send to you a customized step by step business development and a Cal-X 5 year funding road map plan.
* If your Cal-X EquityNet probability of survival score is under 50% we enroll you into our mentoring program through a network of incubators and software tools. All applicants are directed to the Cal-X Zimplemoney program to complete a friends and family round of financing.
STEP 3 – When your Cal-X EquityNet probability of survival score is over 50% we will list you into our Cal-X Crowdfunding for Serious Start-ups platform which includes access to microlicensing and microloans as well as over 35 other financing tools.
Step 4 – When your Cal-X probability of survival score exceeds 70% you will qualify to be listed on The California Stock Exchange when SEC registered or another public stock exchange with Cal-X affiliates assistance. You will also quality for Cal-X published after market research reports to help support your stock.
START UP BACKERS
Step 1 – Fill out Cal-X startup backers interested to invest time, money or resources application. Let us know your risk tolerance and your specific interests in helping startups and what type of companies you are most interested in backing. Help us establish if you are a non-accredited angel investor, California Qualification by Permit investor, sophisticated investor or accredited investor. Let us know if you can provide mentorship support or other resources to start-ups.
Step 2 – Cal-X sends to you three startup matches a week for you to consider backing based on your application. All applicable SEC and state regulations must be followed.
Step 3 – Backers receive invitations to meet in person entrepreneurs, that meet your criteria for interest in backing, in person at a local Cal-X chapter meeting.
Cal-X helps entrepreneurs with a simple format – They fill out an application and we come back to them with a 5 year nurturing, mentoring and funding road map the leads at the end in a successful listing on the new California Stock Exchange.
Cal-X helps investors by reducing risk by only listing firms that have received proper business planning and execution support and have a high Cal-X EquityNet probability of survival score. The patented Cal-X EquityNet software has 52 key indicator numerical inputs, including the Klout score now of every executive, which helps determine the probability of survival score. If you have seen the movie Moneyball about utilizing stats to choose the best value baseball players to achieve the most wins this is the same method but for valuing companies. We help companies by mentoring them until they get a high enough probability of survival score to get listed first on our crowdfunding site and later on The California Stock Exchange.
• Cal-X is planning to start a large marketing campaign asking everyone in the country to invest $25 a week in a local startup.
• Cal-X is registering with the SEC to become a third major exchange in the USA focusing on smaller businesses.
• Cal-X plans to arrange around the nation local investing meetings encouraging people to mentor and invest in businesses in their communities.
• Cal-X unlike other stock exchanges and crowdfunding sites has a nurturing system linked with a network of incubators and support organizations.
• Cal-X and the Entrepreneurship Party will continue to lobby for the entire Startup Legislative Agenda proposed by the StartUp America Partnership and the President’s Jobs Council.
• Cal-X and the E Party are lobbying for legislation that will allow foreigners to earn a quicker place in line for Visas if they invest in job creating U.S. companies. We also seek incentives for U.S. firms and individuals that have money stored in off shore tax havens to bring that money back to invest in start ups and growing businesses.
Cal-X specific services list…
* Puts your company on the map. – Click Here
* Help with friends and family round financing round. – Click Here
* Find a local business incubator or mentor. – Click Here
* Crowdfunding tools to raise up to $2 million. – Click Here
Register your Private Placement Memorandum or Alternative Crowdfunding Plan with ..
A comprehensive business toolbox full of resources that
entrepreneurs want to help them plan and implement their business ideas
Cal-X Endorsed Crowdfunding Portal for Raising Funds for Social Causes (non-equity)
Crowdfunding for Political Causes
* Help form your LLC or corporation. – Click Here
* Help with filing and developing patents. – Click Here
* SBA Loan Assistance. – Click Here
* Help with Trade shows and exhibits. – Click Here
* Help with web site design. – Click Here
* Help with creating a venture pitch. – Click Here
* Accelerate Startup growth with online influence. – Click Here
* Help with creating a business plan. – Click Here
* Help with optimizing a business plan. – Click Here
* Help with peer group analysis. – Click Here
* Help with bench marking. – Click Here
* Help with creating a PitchTV ad on Virgin Airlines. – Click Here
* Help with pre-selling territory licenses for new products. – Click Here
* Help with pre-selling future products to finance development. – Click Here
* Help with microloans and peer to peer lending. – Click Here
* Help with financing receivables. – Click Here
* Help with financing exports. – Click Here
* Help setting up a cooperative. – Click Here
* Help with confidential private placement legal documents. – Click Here
* Secure web based tools for managing private placements of stock. – Click Here
* Help with California Qualification by Permit Offering of up to $5 million = The investor (including any spouse) must have, exclusive of homes, home furnishings and cars, either: (1) a minimum net worth of at least $75,000 and minimum gross income of $50,000 during the last tax year and (based on a good faith estimate) minimum gross income of $50,000 during the current tax year, or (2) in the alternative, a minimum net worth of $150,000. In either case, the investment cannot exceed 10 percent of the net worth of the investor. – Click Here
* Help with California Capital Access Pool Program. – Click Here Download Brochure – Here
* Help with online confidential private placement to accredited investors only. – Click here
* Help with funding a new computer app by microlicensing. – Click Here
* Help finding angel investors. – Click Here
* Shareable company profile for investors. – Click Here
* Collaborative online workspace with mentors. – Click Here
* Venture firm locator. – Click Here
* Form a Capital Pool Company for making acquisitions. – Click Here
* Sell or buy restricted private company stock. – Click Here
* Complete a direct registered public offering. – Click Here
* Complete a standard healthcare IPO. – Click Here
* Complete a standard IPO. – Click Here
* Dutch Auction type open IPO. – Click Here
* Complete a PIPE financing – Private Investment in Public Entity. – Click Here
* We organize local meetings to meet potential mentors, business partners, potential vendors and investors.
* We drive potential investor traffic to our site with a strong PR and advertising campaign.
* We consolidate many useful tools into one easy to use site.
* We have the single application option which allows you to fill out only one application and get listed on over 35 different platforms – Click Here
* We organize sustainable community partnership banks founded by local entrepreneurs for local entrepreneurs with our partner Unified Field Corporation – Click Here
* We help firms finance their exports – Click Here
* We coach and mentor entrepreneurs on improving their pitch for their company and products – Click Here
* We help construct a term sheet for closing financial transactions – Click Here
Cal-X Endorsed Loyal3 Program to buy stocks in public companies
Cal-X Endorsed Social Media Sentiment Trending Fund
* We provide patented EquityNet probability of survival score ranking to attempt to reduce investor risk (like how the A’s baseball team ala Moneyball Billy Beane used statistics to reduce risk).
* We screen endorsing investor mentors for each company before listing.
* We organize local forums for you to meet entrepreneurs in person. – Click Here
* Our policy to only accept firms with a social good purpose provides a “feel good” site for investors.
* We ensure listed companies have tools and mentorship to increase their chance of survival.
* IPO Calendar
* We are only crowdfunding site we know of that is duly registering with SEC to become a true stock exchange.
* Peer to peer lending opportunities. – Click Here
* Leader in early stage microlicensing opportunities. – Click Here
Cal-X Crowdfund Rules Summary Review as of February 2012
- Only available to pre-qualified accredited investors via secured password protected sites such as MicroVentures and Gust.com.
- Intermediaries must be registered broker-dealers such as MicroVentures.
- Sites like Caplinked may be used only for organizing documents as an electronic due diligence room. All SEC rules must be followed regarding the offerings associated with the information. The issuer is responsible for meeting this regulations.
- Limited to substantial pre-existing relationships.
- No general solicitation.
- Offerings have to be filed with the SEC and state agencies and must meet all requirements.
- Limited to raising $5 million annually with appropriate filings with SEC and state regulators.
- No more than 499 shareholders or $10 million in assets before having to register as public.
Expected Crowdfunding Basic Rules When Pending Bills Become Law
- Offerings limited to $1 million and will likely require audited financial statements.
- Low income < $50,000 annual income investors limited to $500 per investment with overall cap $2000.
- Medium income >$50,000 <$100,000 annual income investors limited to $1000 with overall cap $4000.
- High income >$100,000 annual income investors limted to $2000 with overall cap $8000.
- Crowdfunding portal must be registered with the SEC and the state.
- Issuer must be incorporated.
- Crowdfunding portal must be open and accessible to public with public communication capability.
- Issue and portal must publish on portal site this information..
- Description of business and business plan.
- Purpose and intended use of offering.
- Ownership, capital structure.
- How the securities being offering are being valued.
- The rights of the securities and how the rights may be exercised.
- Crowdfund portal must provide educational materials to investors.
- Under $500,000 offerings require reviewed financial statements.
- Over $500,000 offerings require audited financial statements.
- The highly risky nature of investing in startups must be made clear to potential investors. They must be warned of high chance to lose all their investment.
- Investors must be warned of the illiquidity of their investment.
- Shares cannot be sold for two years and even then only to other accredited investors following SEC rules (unless the company later files as a public company).
- Shares are restricted and investors must be warned of what restrictions mean to them.
- Crowdfund portals must take reasonable measures to reduce risk of fraud.
- Crowdfund portal must provide SEC with full disclosure of information on all it’s officers, employees and over 20% shareholders.
- SEC will have full investor level access to Crowdfund portal and to issuer websites.
- The target offerings amount and deadline must be published with regular progress updates. No funds can be transferred to issuer from 3rd party funds custodian until 100% of target has been reached.
- Investors can cancel their commitments at anytime up to the full target being reached.
- Crowdfund portal must run background checks on principals of issuer.
- Crowdfund portal and issuer must provide pre-offering notice to the SEC.
- Crowdfund portal and issuer must provide SEC with notice of completion of offering.
- SEC and investors must receive quarterly financial reports from the company.
- Cash management is outsourced to a registered depository institution custodian (not handled by Crowdfund portal).
- Crowfund portal is required to maintain books and records of all transactions fully up to date and ready for SEC audit without prior notice.
- Crowdfund portal is required to make available on its website a method of communication that permits issuer and investors to communicate with one another.
- Crowfund portal cannot provide investment advice or recommendations.
- Investors must certify in writing their annual income and these records must be maintained by the Crowdfund portal and issuer.
- Shares purchased cannot be resold for two years. Certain exemptions will exist for resale to accredited investors as part of an offering registered with the SEC.
- Bad actors as qualified by Dodd-Frank Sec. 926 cannot participate as an issuer, investor, Crowdfund portal or custodian in crowdfunding.
- Crowdfund portal must do a SEC bad actors check on all principals of the issuer ahead of a posting.
- Covered securities should be filed with the state of incorporation of the issue and the state where more than 50% of the capital was raised, if applicable.
- State securities commissions will have jurisdiction to investigate and bring enforcement action with respect to fraud, deceit or unlawful conduct.
- Employees of the Crowdfund portal are prohibited from investing in offerings made through the portal or to have any financial interest in the companies posting offerings through the portal.
- Costs of the offering must be disclosed.
- All rights of investors must be posted.
- Risks to the investor must be disclosed.
- The Crowdfund portal needs to take steps to ensure the investor has the sophistication to understand the risks associated with this class of investment.
Cal-X Self Chosen Additional Requirements for Offering Postings on our future (pending bills becoming law) Cal-X Crowfund Site
- All firms must have a social good purpose as determined through an application process. Reviewed by a Cal-X panel.
- All firms must have at least one endorsing investor with experience in the field in question, that has done due diligence on the company prior to posting with us. The endorsing investor must agree to be identified as such with their photo and reputation posted alongside the issuer profile.
- All firms must agree to run their business plan through the Cal-X EquityNet Probability of Survival index scoring system. Any firms with less than 50% probability of survival score are not eligible to be posted with us. Potential investors will be given full access to this report.
- All firms must submit a pitch video for grading. Only firms with a pitch score greater than 50% (after mentoring sessions) will be permitted to list on our Cal-X Crowdfund site.
- All firms must submit to a test of “fire and in the belly” and ability to handle critics session with a Cal-X panel or a designated startup incubator or service provider. Only firms scoring higher than 50% will be permitted to be listed on our Cal-X Crowdfund site.
- All firms must agree to hold a minimum of two hours of open unfiltered questions from investors to their CEO and CFO every quarter and to record those sessions and post them on our web site and/or their web site.
- All firms must agree to have their board of directors elected by true open democratic voting by shareholders.
- All firms must agree to self audit for equal pay for equal work for women and minorities.
- All firms must agree to participate when held in their city local Cal-X Chapter meetings (maximum of once per year) where investors can meet the entrepreneurs in person.
- All firms must agree to enter into our independent 3rd party financial writers and coach mentors ranking poll.
CalX Regulatory Compliance Summary – Click Here
Raise Funds for Struggling Scientists