What does it mean when an offering is oversubscribed?
An offering becomes oversubscribed once the total offers submitted exceed the equity allocation.
Why do we oversubscribe offerings?
As you can imagine, sponsors need a high level of certainty that committed capital will ultimately convert to invested capital and absolute certainty that 100% of required equity funds by the time of closing. For this reason, CrowdStreet typically accepts offers in excess of 5-10% of the total equity allocated to marketplace investors to account for investor attrition.
What is CrowdStreet's offer acceptance policy?
CrowdStreet's policy is to accept offers in the order they are received, and each offer receives a timestamp as soon as it is submitted. Additionally, CrowdStreet oversubscribes offerings, which means when the total amount of current offers (including your offer) exceeds the equity allocation available for CrowdStreet Investors.
How can I maximize my chance of participating in an offering that is likely to become oversubscribed?
Some offerings have been fully subscribed in under 10 minutes in the past. Other times, it takes longer. To maximize your chance of participating in an offering that is likely to subscribe rapidly, you should submit your offer as soon as the gold "Invest Now" button becomes available. The "Invest Now" button will become available at the start of the webinar. Please note, you can withdraw your offer at anytime before remitting funds if you decide you no longer wish to complete your investment.
I have a scheduling conflict and am not available at the time of offering launch. Can CrowdStreet help?
CrowdStreet is committed to providing a level playing field for all investors. Unfortunately, CrowdStreet cannot place investment offers for investors that are unable at the time of launch, and no offers can be submitted before the "Invest Now" button is activated.
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 gain access will be to submit your offer as soon as the gold "Invest Now" button becomes available. The "Invest Now" button will become available at the start of the webinar.
What happens if an offering falls short of (or exceeds) its fundraising goal?
Please see this article by Ian Formigle, VP of Investments.