General FAQs

Regulation Crowdfunding (Reg CF) is a set of regulations enacted by the U.S. Securities and Exchange Commission (SEC) under Title III of the Jumpstart Our Business Startups (JOBS) Act. It allows small businesses and startups to raise capital through crowdfunding from individual investors, also known as “crowd investors.”

Reg CF provides an exemption from the traditional securities registration requirements, making it easier and more accessible for small businesses to raise funds. Prior to Reg CF, crowdfunding was primarily used for donations or rewards-based campaigns. With Reg CF, eligible businesses can offer securities, such as equity or debt, in exchange for investments from both accredited and non-accredited investors.

Provide an overview of how your Reg CF portal functions, including the process of listing offerings, investor registration, and the investment process.

Under Regulation Crowdfunding (Reg CF), a wide range of small businesses can use a Reg CF platform to raise capital. The SEC has set certain eligibility criteria for businesses seeking to utilize Reg CF. Here are the key requirements:

a. Legal Entity: The business must be organized and registered as a legal entity in the United States. This includes corporations (both C-corporations and S-corporations), limited liability companies (LLCs), partnerships, and certain other legal entity types.

b. Business Location: The principal place of business must be located in the United States.

c. Funding Limit: The business can raise up to a maximum of $5 million within a 12-month period through crowdfunding.

d. Business Stage: Reg CF is typically used by startups and small businesses in their early stages. There are no specific restrictions on the industry or sector in which the business operates.

e. Disclosure Requirements: The business must provide certain disclosures to potential investors, including information about the business, the terms of the offering, financial statements, and any potential risks. These disclosures are designed to help investors make informed investment decisions.

It’s worth noting that certain types of businesses are prohibited from using Reg CF. These include non-U.S. companies, investment companies, certain financial institutions, and businesses that have already registered with the SEC under the Securities Exchange Act of 1934.

Ultimately, Reg CF provides an accessible funding option for a wide range of startups and small businesses across various industries. It allows these businesses to tap into the crowdfunding market and raise capital from individual investors, enabling them to grow and pursue their business objectives.

The maximum Reg CF funding limit set by the SEC is $5,000,000. This is also the limit set by CineBlock Films, LLC funding portal. This does not include any private raises done independently of our crowdfunding portal. For further details, read our Crowdfunding Investor Guide. Additional information is available on the SEC and FINRA websites respectively.

Hollywood is risky business. Film investing is a highly risky and speculative investment. Most startup projects fail, so there is a substantial likelihood that you could lose all your investment capital. Be aware and carefully research any campaigns along with reading through the subsequent investor agreements. It is a best practice to consult your financial advisor and attorney before proceeding with an investment. In addition, these assets are particularly illiquid in nature and selling them might also be limited based on your location or residence.  

Each issuer must pass through a quality assurance and screening process before there film fundraising campaign is published (See FAQ #3). They must file the appropriate forms with the SEC before issuing securities. They must also meet and comply with all the requisite local, state, and federal requirements prior to publicly publishing their campaign. CineBlock Films, LLC makes every feasible effort to ensure that each offering is in compliance with federal guidelines. However, every investor should do their own research on the issuer and offering before making a formal commitment. 

Our platform also requires that the Issuer provide a detailed business plan that includes, but is not limited to, the product or services to be sold; the target market for the products or services; the identity and short biography of the directors and officers of the Issuer; and an explanation of how the Issuer intends to use the funds raised.

For more details, please refer to our Platform Guide. 

In addition to campaign pre-screening, every investor must go through our onboarding process and pass any KYC requirements set by the SEC/FINRA. This is required for both accredited and unaccredited investors. Unaccredited investors are subject to platform investment limits (maxing out at $107,000/year) whereas accredited investors are not subject to investment limits. 

DO YOUR RESEARCH. All issuer essential documents and disclosures are made available in the ‘pitch’ tab section of each campaign and potential investors are free to contact the issuer for further clarification. 

Paid promoters and/or members of the Issuer offering must disclose the fact they are being paid to promote prior to sharing comments in the campaign comments section or reaching out to potential investors on the platform. Any violations may result in the suspension or cancellation of the offending account.

Investor funds are never directly held or handled by CineBlock Films, LLC. Any digital or tokenized funds (USDC) are sent directly from user-managed wallet account to the subscribed issuers escrow account. Any US Dollars (fiat currency) to be invested are received via the platform’s payment gateways and sent directly to the subscribed issuer’s escrow account.If the campaign raise is unsuccessful, funds are returned by escrow to the investor’s wallet or account minus any escrow transfer fees. 

Funds are released via escrow instructions to the Issuer’s account upon a successful fundraising campaign raise. Issuer is responsible for fulfilling any contractual obligations to subscribers, regarding token issuance, rewards, disbursements, communications, benefits, perks, repayments, residuals, royalties, or dividends from the Issuer. 

There are fees charged to both issuers and investors, including listing fees, transaction fees, or ongoing maintenance fees. There is no fee for investors or issuers to sign up on the platform or for exploring and reviewing offerings.

There is no fee to register and open an account on our Portal and platform as long as you agree to abide by our User Agreement and corresponding Privacy Policy.

Any company or individual (Issuer) presenting an Offering must pay an upfront listing fee of $3,500, this listing fee is non-refundable. There is an escrow application and setup fee of $500, and every control person associated with an offering will need a Bad Actor Check to be paid to the escrow, the cost of those fees is as follows: $45 for US- based persons and entities, $100 for International persons, and $160 for International entities. In addition to the listing fee, there is a final performance fee if the Offering is successful in reaching its funding goal. The performance fee is established by agreement between the Issuer making the Offering and us. The performance fee must be disclosed to Investors in the materials presented in the Offering. The performance fee is paid by the Issuer and can be in cash and/or a combination of cash and the offered securities, of up to 12% of the total funds raised.

Fees payable to other providers for your offering may include but are not limited to: Accountants, Lawyers, Escrow Services, Marketing, and Design.

Investor fees are currently limited to any network gas fees to process USDC transfers. USD transactions do not come with predetermined processing fees other than those noted by the third party payment gateway.

The investment Tokens you may accept will not be freely tradable until one year from the initial purchase date and you should be aware that there is no guarantee that a market for Tokens will develop during or after the one-year hold period.

There is no present market for these Tokens, so the Issuer may arbitrarily set the price. In the event that a market for the tokens does develop, investors may not be able to sell their tokens at a price equal to or more than what they paid for them, and therefore, investors could lose some or all of their investment.

Limited liquidity of Tokens may make the Tokens less attractive to investors.

Holders of Tokens may sell their Tokens, which could lead to a decrease in value that could be substantial and

lead, therefore, to a material adverse effect on the Token price and the business of the Issuer.

In some instances, local, state, or federal law may restrict you from selling or transferring your investments at all. 

Within each campaign profile, there are tabs for investors to access investment and production updates, investment reports and documents, directly message or contact the issuer, or comment within the comment section of the campaign profile. Only registered users are allowed to comment or message within the platform.

Paid promoters and/or members of the issuer offering must disclose the fact they are being paid to promote prior to sharing comments in the campaign comments section or reaching out to potential investors on the platform. Any violations may result in the suspension or cancellation of said account.

If the campaign raise is unsuccessful, funds are returned by the escrow account to the investor’s digital wallet or account minus any requisite escrow transfer fees.

CineBlock Films, LLC, a Maryland limited liability company (“CineBlock Films”), is a funding portal registered with the United States Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). 

CineBlock Films is neither a broker-dealer nor investment advisor, and is not responsible for the activities of users of this website, software or mobile app (the “Platform”).

CineBlock Films does not provide investment advice of any kind to investors and no communication through this Platform should be construed as an investment advice for any security offered on this Platform.

All securities listed on this Platform are offered by, and all information included on this Platform is the responsibility of the issuer of such securities. CineBlock Films has not taken any steps to verify adequacy, accuracy or completeness of any information. Neither CineBlock Films nor any of its officers, directors, agents and employees make any warranty, express or implied, of any kind whatsoever related to the adequacy or completeness of any information on this Platform or the use of information on this Platform.

CineBlock Films conducts all funding-portal activities of this online intermediary platform, where crowdfunded securities are offered for sale by issuers in accordance with the rules governing the offer and sale of securities under Section 4(a)(6) of the Securities Act of 1933. CineBlock Films permits prospective investors to independently search and invest in digital securities offerings on the Platform.

The securities offered on the Platform are only suitable for prospective investors who are familiar with and willing to accept the high risks associated with private investments, including the risk of complete loss of their investment. Securities sold through CineBlock Films are highly speculative and illiquid. Securities will be subject to restrictions on resale or transfer including holding period requirement of one year. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. Investors are advised to consult with their tax, legal and financial advisors prior to making an investment.

The securities offered on this Platform are not offered in jurisdictions where public solicitation for offerings is not permitted. Investors are responsible for complying with the laws and regulations of their country of residence.

Risk of digital securities

CineBlock Films issues investment commitment tokens in digital wallets of investors through the Ethereum blockchain. At the end of a successful offering, the issuer replaces or converts investment commitment tokens into digital securities.

Investors are responsible for maintaining security and confidentiality of their digital wallet password, secret phrase and private key (“Credentials”). Investors must protect their Credentials from cybertheft. Investors must not share their Credentials with any other person. Neither CineBlock Films nor any other party has access to an investor’s Credentials. In the event of loss of Credentials, the investor will lose all assets in their digital wallet. Excluding the replacement of investment commitment tokens during the subscription period upon payment of a replacement fee of $50 , CineBlock Films will not be liable for any loss, damage or injury or for any direct, indirect, special, incidental, exemplary, or consequential damages arising from or related to the loss of an investor’s Credentials or errors in the use of their digital wallet. Post-subscription, investors must contact the issuer or issuer’s transfer agent for replacement of lost digital securities. Issuer or their transfer agent may charge a fee for replacement of digital securities.

The Ethereum blockchain keeps all transaction history public using the public key of digital wallets. Investors may want to control access to the public key of their digital wallet except when they have to share the public key with a counterparty to execute a transaction. We advise investors to review Managing Privacy and Security on Public Blockchains before making an investment.

If the Ethereum blockchain is split or forked into two or more branches, CineBlock Films will, in its sole discretion, decide which branch of Ethereum it will use. Any investment commitment tokens issued by CineBlock Films will be valid only on the branch of Ethereum which CineBlock Films decides to use. Excluding the replacement of investment commitment tokens, CineBlock Films will not be liable for any loss, damage or injury or for any direct, indirect, special, incidental, exemplary, or consequential damages arising from or related to a split of the Ethereum blockchain. Post-subscription, investors must contact the issuer or issuer’s transfer agent to find out the branch of Ethereum which will be valid for the digital securities in the event of a split of the Ethereum blockchain.