Benefits of an SIC
SproutUps is a SIC (Social Inves-ng Community). The SIC industry began to emerge in 2014 for three reasons:
• Evolution of social media
• Passage of the Dodd Frank Act in US
• Passage of JOBS Act in the US
The model of a SIC is very disrup-ve especially to venture capitalists and angel groups because it
provides the following:
- Capital for all of a startup’s pre-IPO rounds
- Liquidity for a startup’s investors
The goal of a SIC is to have hundreds of thousands of members building portfolios from investing small
amounts into numerous startups and early stage companies. The mission of a SIC is to lead and educate
its members about investing. The key benefits for a startup being a member of a SIC:
- Less dilution and more control. Large investors can and will dictate onerous terms and
- Less risk. Probability is infinitesimal that shareholders investing small amounts will take legal
ac-on in the event of bankruptcy, etc.
- Shareholders obtained by online funding are:
i) Advocates for the growing of crowd to invest in follow on offerings.
ii) Zealots which can and will promote a startup’s app or products and services.
iii) Par-cipants in addi-onal offerings.
Without the JOBS Act being signed into law by US President Obama the SIC model there would be no
rationale for the SIC model. The three new securities laws that were implemented by the US Securities
& Exchange Commission (SEC) are now being leveraged by the SICs to provide capital to startups and
liquidity for their shareholders:
- Title II-Issuer can raise all of the capital that it needs by advertising. However, the capital can
only be provided by accredited or high net worth investors.
- Title III- Issuer can raise up to $1,070,000 per annum from non-accredited investors or the public
by listing its securities on a US government regulated and approved online funding plaRorm.
Shares purchased by investors in Title III offerings are freely sellable to any and all investors one
YEAR after purchase.
- Title IV-Issuer can raise up to $50,000,000 per annum from non-accredited investors. Shares
purchased by investors in Title III offerings are freely sellable to any and all investors one DAY
- SproutUps is a member of a network of SICs. The SICs in the network provide an issuer who
becomes a member of one or more of the SICs with the ability to efficiently and quickly raise capital as
needed and at increasingly higher valuations: Members of the network.
- Dynasty Wealth. Specializing in finding and funding startups which have 1,000X upside potential. A Dynasty Wealth member issuer must have a business model which is capable of reaching a valuation of $10 billion within 5 years after becoming a member.
- Appsfunder. Specializing in finding and funding apps. It is projected that more than 1.4 million new apps that are currently under development or will be under development will hit the app stores by 2020.
- SproutUps. Building a crowd consis-ng of a billion individuals (non-accredited) to invest as low as $20 into startups and early stage companies. SproutUps is a key strategic partner for the SIC network. It enables an issuer member of a SIC in the network to have access to the masses. SproutUps provides a startup with the potential to have hundreds of thousands and even millions of shareholders who can be advocates and zealots for the startup’s products and services.
Trophy Inves-ng’s 3 year
Year Issuers Capital provided*
2018 100 $300 million
2019 1000 $5 billion
2020 10,000 $50 billion
*includes Title III and IV
Trophy Inves-ng intends to begin to provide capital to non US startups that are listed on non US
government regulated plaRorms during 2018. Trophy will adhere to the government regula-ons that
are required by each country that allows and enables crowdfunding.
Recommended ar-cles and videos.
• StartEngine’s New Secondary Market Extremely Disrup-ve to Capital Markets, November 17,
• Crowdfunding Must Get Back to Its Roots, October 20, 2014
• Video: “The Social Inves-ng revolu-on, the sequel to the Social Media revolu-on has begun.” (6
min 44 sec)
• Video: “Digital Economy Transforma-on crea-ng poten-al 1,000 -mes ROI” (8 min 12 sec)
A startup can become more visible and move higher up on the food chain by having its friends and family
to become members of Trophy Inves-ng and the other SICs in the SIC network. Startups get credit by
their contacts inser-ng the name of the startup in the “How did you hear about us” box on Trophy
Inves-ng’s membership subscrip-on page. Membership to Trophy Inves-ng is FREE.