What is Paperstreet? expand_more
Paperstreet is a fully compliant end-to-end token sale platform.
For issuers who qualify to launch on our platform, Paperstreet provides a comprehensive compliance infrastructure, along with many supplementary partnered services, to position token and equity issuers with long term success.
For investors that qualify, it’s the simplest way to invest in token and equity offerings among all platforms available.
How does it work? expand_more
For investors looking to invest in token sales, security tokens, equity offerings and syndicate deals, Paperstreet provides a platform to participate in these sales with all the trust and compliance required for US and international investors to invest. When participating in a token sale you as an investor will be walked through each step of the process from learning more about the offering, completing KYC/AML compliance, depositing funds into escrow accounts/wallets, verifying investor accreditation (if necessary), signing investment agreements and providing an address for issuance of your tokens (not necessary for equity investments).
Creating an investor account
How do I create an investor account? expand_more
You can create an account by signing up here: https://paperstreet.vc/signup
Our sign-up flow will guide you through the necessary steps in order to get your account up and running.
Can I open multiple accounts? expand_more
No, users may only have one account. Our KYC/AML process will block all users trying to create duplicate accounts.
What if I fail KYC / AML? expand_more
You will be provided with a reason for KYC/AML failure. You can re-submit for KYC approval upon failure. The most common reason for failure is the quality of documents submitted, please make sure they are high quality images. Please contact [email protected] if you have any questions.
What documentation do I need for KYC/AML? expand_more
You will be asked to submit one or more of the following:
Passport, Driver's License, National Identity Card, recent utility bill.
What if I fail investor accreditation? expand_more
You can re-apply for accreditation and a reason will be given for failure.
How long does it take to get KYC/AML approved? expand_more
KYC/AML typically takes under 10 minutes for approval or disapproval. However, under periods of high volume, please give up to 24 hours before contacting us at mailto:[email protected].
How long does it take to get Accredited? expand_more
Investor accreditation usually takes between 6 hours to 3 days for approval. It is important to note that investor accreditation must be re-verified every three months as is required by law.
I forgot my password. How can I reset it? expand_more
Please go here: https://www.paperstreet.vc/forgotpassword to reset your password.
For investors located in other areas of the world, the offering availability depends on the security or token offering laws within that country. The Paperstreet platform gates all offerings for investors that are unable to participate in sales due citizenship or geographic location.
Who can purchase tokens? expand_more
For investors located in the US and Canada, participation depends on the regulation and exemptions the issuing entity is filing with SEC. A few examples include:
Reg D (506(c)) offerings only US verified accredited investors may participate.
Reg D (506(b)) offerings are available to US verified accredited investors and up to 35 non-accredited, sophisticated investors.
Reg A+ offerings allow all US investors to participate, but investors must self-certify they are not investing more than 10% of their net assets.
Reg CF allows all investors to participate, but they raise amount cannot exceed $1,070,000. The limits for investors vary depending on the net worth of the individual/household investing in the sale. Here is a table showing a breakdown of the limitations for Reg CF:
Do I need to be an accredited investor? expand_more
If you are from the U.S. or Canada, investor accreditation is typically required for a token sale on our platform, but is subject to exemptions for the offering specified by the SEC. However, other countries may be require accreditation verification as set by the token issuer on a project-by-project basis.
What does it mean to be an accredited investor? expand_more
This is known as “Investor Accreditation” and in regards to the US certifies an investor meets one of the following standards: Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR… Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
What currencies does Paperstreet accept? expand_more
Paperstreet accepts virtually all types of currencies including: ETH, BTC, XLM, EOS, NEO, & Fiat currencies (via bank wire)
How does distribution of tokens work? expand_more
During the investment onboarding process for an offering you as an investor will be asked to provide a token distribution wallet address that is not associated with an exchange and compatible with wallet services like MyCrypto or MyEtherWallet. Paperstreet will provide your address to the token issuer and the amount of tokens the investor is expected to receive. After the issuer has issued the tokens to investor you will receive an email confirmation that your tokens have been issued to the distribution address you’ve supplied.
How many tokens can I purchase? expand_more
The limit of tokens you can purchase varies by the sale. You will be provided with limits when going through each investment’s onboarding process.
Can I participate in more than one sale? expand_more
Absolutely! You may use your KYC/AML verification and accreditation to invest in any token sale offered to you on the platform (as long as your country is allowed to participate.)
Can I get a refund on investments? expand_more
You may get a refund on investments up until the day before the deposit deadline by emailing [email protected]. Withdrawing an investment is subject to a 5% service fee.
Why are refunds on investments subject to a service fee? expand_more
For various reasons we charge a service fee on investments.
First, requesting a withdrawal is more work for our customer service agents and requires us to initiate the withdrawal after verifying for security reasons the investor is actually requesting a refund and their account hasn’t been compromised. Additionally, our 3rd party escrow service provider must initiate the refund. Second, we want to deter investors from investing that are aware they won’t meet the necessary requirements to participate in the investment. Third, we want to prevent uncommitted investors from sitting on allocations until the last minute and gaming our system. Issuers and other investors wanting to participate in an offering may be limited or unable to participate in an investment due to other investors reserving their allocation. We want to ensure all investors participating in offerings are serious and knowingly qualified to invest. In certain cases we may waive the service fee for an investor, but this is an uncommon situation.
What is an escrow account and why does Paperstreet use an escrow service? expand_more
An escrow refers to money held by a third party on behalf of transacting parties. Paperstreet uses an escrow account through Primetrust to ensure that funds are explicitly used for the purpose intended. Its highly secure and makes the investment process significantly smoother for all parties involved. Investing funds into an escrow account allows you as an investor to reserve your allocation, while you complete accreditation and have your legal representation review the investment documents you will be signing.
What kind of projects does Paperstreet work with? expand_more
Paperstreet only works with projects it deems to be high quality enough to put in front of its large network of investors. We do not promote projects but users can be sure only the highest quality tokens will be offered. Our issuers are subject to internal due diligence and the entity and members are subject to bad actor checks (https://www.sec.gov/info/smallbus/secg/bad-actor-small-entity-compliance-guide.htm) in compliance with SEC law.
How can I customize the look of my sale? expand_more
Please contact [email protected] to find out more information on the sale process.
How easy is it to integrate a sale onto my site? expand_more
Integrating is as easy as embedding a button on your token site. Paperstreet will handle the rest.
How can I submit my project for Paperstreet? expand_more
Please go here to apply to use the Paperstreet’s whitelabel compliance service for public/private listing: https://goo.gl/forms/UreFaUQp8sc12a2u1
How can I limit my token sale to block unqualified people from investing? expand_more
Paperstreet offers the ability to make sales as public or private as you would like. Sales can be limited not only by geographical location but to specific investors, syndicates, public or private sales. However you’d like to gate investors and publicize your sale is up to you the issuer.
Why Paperstreet? expand_more
Paperstreet provides the most seamless, customizable, beautiful investment experience for both token issuers and investors.
If you'd like to find out more, feel free to reach out at [email protected].