What happens if my raise doesn’t reach its target by the deadline?

Under Regulation Crowdfunding, the target offering amount in your Form C is a hard threshold. If your raise has not reached that target by the offering deadline, the offering does not close: no securities are sold, investors receive a cancellation notice, and Invown Funding Portal LLC, the SEC-registered funding portal and FINRA member through which Reg CF offerings on Invown are conducted, directs the return of all committed funds to investors.

Where the money goes

Committed funds never sit with you or with Invown during a raise. They are held in escrow with a third-party bank (Enterprise Bank & Trust or Luminate Bank, as applicable) until closing. If the offering does not close, the escrowed funds go back to the investors who committed them. Investors can read the same process from their side in the investing section of our help center.

Why the final stretch matters

Two Reg CF rules make the last days of a raise move. Investors may cancel a commitment for any reason until 48 hours before the deadline, and a material change to the offering cancels commitments unless investors reconfirm within five business days of notice. Your committed total can therefore drop late in the raise, so many issuers aim to pass the target with room to spare rather than land exactly on it.

If you are close but not there

Talk to the Invown team through support before the deadline passes, not after. Changes to an offering’s terms are governed by Reg CF’s amendment, material-change, and reconfirmation rules, and what is possible depends on your specific offering. The flip side also applies: if you reach your target ahead of schedule, an offering that has been open at least 21 days may be able to close early, subject to the notice and new-deadline conditions described on our investor education page.

What it means for your costs

Funds are released to you only after a successful close, so a raise that misses its target releases nothing to you. For how a raise that does not close affects the fees under your plan, see pricing or contact support. A missed target is also not necessarily the end of the road; support can walk you through what a future offering would involve.