Q. What is the impact of the JOBS Act on MacroHub?

President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) into law in April of 2012. The intent of the JOBS Act is to provide more effective access to capital for small businesses and startups. Although a majority of the attention paid to Title III of the JOBS Act (which provides a legal framework to enable equity based crowdfunding), Title II potentially will have the greatest impact on MacroHub. While MacroHub will not rely initially on the implementation of the JOBS Act, Title II of the Act will lift the ban on general solicitation of certain securities and allow companies such as MacroHub to offer investment opportunities to accredited investors where no prior meaningful relationship exists. After Title III regulations are fully enabled by the SEC, MacroHub will be able to offer investment crowdfunding opportunities in their fullest sense, opening up to thirty trillion dollars of capital in the United States alone (this does not include international investors). MacroHub is in essence - bringing Wall Street back to Main Street.

Q. Can you describe the MacroHub investment process?

All of our investors must pass our initial screening process to qualify for accredited, non-accredited, or foreign status. They are then able to examine potential investment opportunities when logged in to our platform. Our platform presents all due diligence items, financials, proposed deal structures, business plans, investment documents (including operating agreement, an investor questionnaire and subscription agreement) as well as detailed information on the operating partner. Once the investor considers the investment attractive enough to add to their portfolio, they simply click the “INVEST” button. They will then be asked to execute the required documents online with a secure e-signature process to submit payment. We present our investors with several options to execute the transfer of funds into a secure third party escrow account. All funds are held in this account until the investment is complete. Monies are then transferred securely to the investment fund only once escrow is reached, and the transaction is closed since a new entity takes ownership of the asset. Our members become official investors only when escrow is reached - if the opportunity fails to reach its full funding amount, all funds will be returned to the investors.

Q. When will I see a return on my investment?

Crowdfunded equity investments typically operate on a longer time-frame than more liquid stocks or bonds. However, since you are investing into a company at its early growth stages, the upside potential can be extremely lucrative. Each investment opportunity is accompanied by a thorough business plan that outlines the time-frame necessary to realize the investment. This investment process may vary anywhere from one to five years until maturity. 

Q. What fees accompany investment with MacroHub?

Our investor members never pay fees to MacroHub, only the developers are charged fees once the funding goal is reached. Our fees are dependent upon the type of investment and how complex its organizational structure is. We experience a return on the profits when the distribution payments are made, so we don’t get paid unless you get paid. We make sure the investment opportunity we present to you is solid and will be successful because our bottom-line interests are aligned with yours; we make money when you do – it’s that simple. Fees differ per investment and are listed in the operating LLC agreement for your review. MacroHub may also use an affiliated operating company to provide management for the ongoing optimization of the investment.

Q. Who is responsible for the management and maintenance of the asset?

Each asset is the responsibility of an operating team with the experience to be able to appropriately scale and grow the asset. The operators are experts in the their specific asset class, whether it be resource, technology, healthcare etc. In addition, the operator’s past investment experience and background will be made available for our members to reiview.

Q. Who is responsible for decisions in an LLC?

Each investment offered by MacroHub is managed by a MacroHub-controlled LLC which acts as the “Managing Member.” This entity has sole and exclusive rights for the management, control and performance of the affairs of the LLC. These rights include, but are not limited to, fund distribution to investors, decisions regarding sale and leasing, operational decisions and reporting.

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