You received the following email:
Thank you for submitting your offer to invest in ________________. Currently, this offering is in a state of oversubscription, which occurs when the total amount of current offers (including your offer) exceeds the equity allocation available for CrowdStreet Investors. In a state of oversubscription, the Sponsor will accept investments in the order that funds are received. Your offer to invest will be accepted if you fund prior to the equity allocation being fulfilled.
You will be notified by email when funding instructions are available. Please note that investment documentation must be submitted and approved before funding instructions can be made available for you. If you have not already done so, please click here to visit the Transaction Center and complete your investment documentation.
What does this mean?
This means that the total sum of offers CrowdStreet investors have submitted thus far exceeds the total equity allocation that CrowdStreet is permitted to raise. In other words, we are maxed out in terms of commitments, but not all of investors' funds are in yet, and the opportunity to fund remains to those investors who move most quickly.
Am I in the deal or not?
Yes, your offer to invest is included in the the total sum of offers. Offers are generally accepted in the order by which funds are received, and ultimately at the discretion of the sponsor. The best way to ensure that your investment is accepted into the deal is to fund at your earliest convenience.
I'm ready to fund... Does it make a difference which method I use?
Yes! For an oversubscribed offering, the best course of action would be to send your funds in via same-day wire. Using ACH or sending a check by mail can typically take up to 3-10 business days, and result in other investors who wired their funds coming in ahead of you.
Why are offerings allowed to be oversubscribed?
CrowdStreet typically allows for a slight margin of oversubscription to account for a certain degree of attrition we see occur in most deals. In order to meet sponsors' needs in terms of capital and timeline, the oversubscription paradigm creates the best outcome for the offering.
What happens if an offering falls short of (or exceeds) its fundraising goal?
Please see this article by Ian Formigle, VP of Investments.
I have invested on the CrowdStreet marketplace XX times in the past. Can I receive a guarantee my offer will be accepted?
Unfortunately, in the interest of fairness to all investors and sponsors, CrowdStreet cannot give preferential treatment to repeat investors. While we value your continued patronage, the best way to ensure your position in the deal is to fund your offer promptly.
What happens if I send in my funds after the equity allocation is already fully funded?
CrowdStreet will closely watch any oversubscribed offering to preclude a scenario where an investor's funds would need to be returned. Once a sponsor has received the maximum amount of capital that it can, CrowdStreet will promptly remove investors' access to funding instructions and withdraw any unfunded, in-process offers to prevent them from moving forward. In the unlikely event that this happens, CrowdStreet will see that the investor's funds are returned immediately.