About Summit by White Mountain Capital

Information For Investors

What is the difference between preferred and common stocks?

The difference between preferred and common stocks is the rights afforded to each class of shareholder. For preferred stock (which may be issued in multiple series) the stockholders generally have a right to receive the principal share amount ahead of the common shareholders in the event of liquidation (such as the sale of the company or in bankruptcy). Preferred shareholders also may be entitled to a fixed or floating dividend that may be required to be paid prior to the payment of any dividends to common shareholders. Investors should review the terms of each offering to determine what rights may be available to investors in that round, as well as what rights may be held by other investors that could affect their investment.

How are post-money valuations determined?

 The post-money valuation is determined by the sum of the pre-money valuation and the amount being raised. For example, if a company is valued at $10 million pre-money and is raising $2 million, the post-money valuation would be $12 million.

Does White Mountain Capital issue fractional shares?

No. Summit by White Mountain Capital does not offer fractional shares of companies on the platform. The low minimum investment is designed to allow a wide range of investors to participate in offerings.

What are the risks of startup investing?

There are numerous risks of investing in startups, which often have a significantly higher potential for loss of investment than publicly traded companies which are listed on an exchange. Each investor should carefully review the risk factors of each offering prior to investing and familiarize themselves with the potential perils of each offering. More information regarding the generic risks of investing in startups is available in the INVESTOR EDUCATION section of the site.

Do I have to be a US citizen to invest?

Yes, currently Summit by White Mountain Capital only supports investors who are US citizens.

Is there a minimum investment amount?

Each offering has a specific minimum investment, typically $250 per offering. See the offering page of each investment for specific details.

Can I invest through my LLC/Trust/IRA/Self-Directed IRA?

Yes, during the sign-up process investors will be prompted to enter information regarding what type of account they wish to open. Additional AML/KYC information may be required for certain entity types.

When can investors expect a return on their investment?

Each investment has a different investment horizon and investors should review the offering information to determine their own view on the timeline for each investment. Return on investment is not guaranteed in any particular circumstance and investors should ensure that they are familiar with the risk factors of each offering.

How can I update my email preferences?

Investors can update their email preferences by clicking the “unsubscribe” button at the bottom or any email from Summit by White Mountain Capital or clicking HERE. NOTE: Investors cannot opt out of transactional emails related to their investment.

How can I change my password?

Click HERE to change your password.

Can I add a spouse or beneficiary to my investment?

For information regarding updating an existing investment, contact summit@whitemountaincapital.com for details.

What are my payment options?

Investors can fund their investment options via either wire transfer, ACH debit, or via check. Instructions for each payment method will be provided during the investment process.

What fees do investors pay?

Investors on the Summit by White Mountain Capital platform do not pay any fees. All fees are paid by the issuers. Investors sending wire transfers are responsible for their own outgoing wire transfer fees any other transactional fees assessed by their bank.

Who can invest?

Any eligible investor may invest in an offering on the Summit by White Mountain Capital platform, subject to the investment restrictions as set forth in Regulation CF, White Mountain Capital’s AML/KYC requirements, and acceptance of the investment by the issuer.

What is an accredited investor?

  • High net worth investors.
  • “An individual with income exceeding $200,000 in each of the two most recent calendar years or joint income with a spouse or spousal equivalent exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year or
  • a trust with assets exceeding $5 million, not formed only to acquire the securities offered, and whose purchases are directed by a person who meets the legal standard of having
  • sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment”
  • https://www.sec.gov/smallbusiness/exemptofferings/faq?auHash=rh5WfJi9h3wRzP6X2anOmgYLdhPHNuo-3Vw0YNZyR_M#faq2

What is the maximum investment I can make?

  • For Regulation Crowdfunding offerings, your annual investment limit is based on your net worth and income.
  • Investment limits are for every 12-month period.
  • Everyone can invest at least $2,200
  • If either your net worth or income is below $107k, you may  invest a maximum of 5% of the greater number.
  • If both your net worth and income are above $107k, you may invest a maximum of 10% of the greater number.
  • Accredited investors are not subject to investment limitations in Reg CF offerings.

Do I get voting rights when I invest?

Each company has its own unique provisions regarding the investment rights held by investors in each class of security. Investors should carefully review the offering materials of each transaction to determine what voting rights, if any, they may obtain by investing in the company.

How do I get a return on my investment?

There are several potential means of earning a return on investment, depending on the type of investment. For debt based investments, investors may earn a return from interest payments made. For equity based investments, investors may earn a return from the sale of the security at an appreciated price, dividends or other distributions paid to the class of security holder, or receive cash or other consideration for the security in the event of a sale or merger of the issuer.

If I invest in a company and they fail to reach their funding goal, will I be refunded?

Yes, prior to the closing of any offering, all funds are held in escrow and any offering that fails to meet its minimum closing (or subsequent closing) will be terminated and all investor funds will be refunded by the escrow agent.

Can I cancel my investment and receive a refund?

Yes. You can change your mind anytime up to 48 hours before a close, and you will receive a full refund. Investments cannot be cancelled within the 48 hour window.

You will receive a five-day notice via e-mail when a fundraise is about to close. You can cancel at any point up until you hit the 48 hour window. 

Once the minimum funding target is met, some companies elect for multiple closings, where prior investments are executed and funds transferred, but the round is still open to receive new investments. You’ll still receive a five-day notice if this occurs.  Once your funds are transferred to the company, you no longer can cancel your investment or obtain a refund. 

How will I be refunded?

Any refunds will be processed via ACH credit transaction or via check.

How are my investments taxed?

Each investment has its own unique tax attributes and investors are advised to review the information contained in the offering materials as well as consult with a qualified tax advisor regarding the tax implications of any given investment. White Mountain Capital does not provide tax advice to investors.

Invest on Summit by White Mountain Capital

Click the button below to access Summit by White Mountain Capital’s investment marketplace platform to view opportunities to invest in early stage companies.

Access Summit

Investor Education

Click the button below for additional important information for investors.

Investor Education

White Mountain Capital LLC website and its links (together the “Web Site”) are presented for informational purposes only. The Web Site is neither offering or soliciting to buy securities of any kind nor is it giving any type of investment advice upon which any type of investment advice upon which any person should rely without giving due consideration to other sources of information. White Mountain Capital LLC is a registered Broker-Dealer and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). All retail brokerage customer securities transactions are cleared through Hilltop Securities Inc (SWST).

Copyright © 2022 White Mountain Capital, LLC