What is an accredited investor?

To be an accredited investor, an individual must meet one of the following conditions:

  1. He or she 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
  2. He or she has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

Additional information on accredited investors can be found at the SEC: https://www.investor.gov/news-alerts/investor-bulletins/investor-bulletin-accredited-investors

Does Chime charge investors?

Today Chime only charges issuers, not investors.

What’s the process for investing?

  1. Sign up and create an account.
  2. Once you certify that you are accredited, we’ll allow you to browse active and future deals, where you can review issuer-provided qualitative and quantitative data.
  3. If you’d like to invest in an opportunity, from the issuer’s deal page, you will click on the “Invest Now” button to submit your investment commitment to the issuer. You will indicate your level of investment commitment, and your information will be submitted to the issuer, which may contact you for additional information.
  4. Although issuers may conduct closings in a different manner, generally, once the issuer has accepted your investment commitment, you will be asked to fund your investment commitment into an escrow account and to sign the legal documentation of the investment, with such documents to be held in escrow.
  5. Once the opportunity has hit its target for closing, the issuer may require you to officially verify your accreditation status via a 3rd party provider.
  6. Once all closing conditions are met, the issuer will generally counter-sign all of the legal documentation and release those agreements to you simultaneously with the release of funds from escrow to the issuer.

Is it risky to invest in music?

Any investment carries substantial risks and you should be prepared to lose your entire principal. []

Is there a minimum or maximum I can invest?

These terms will be set by the issuer on a deal by deal basis.

What are the tax implications of investing on the Chime platform?

We cannot offer any tax guidance, please consult with your accountant or tax advisor.

What does vetted mean?

Chime vets each issuer carefully for signs of fraud, but otherwise our listing decisions are subjective. Chime never bases its listing decisions on the perceived quality of the investment opportunity, and no listing on our platform should be construed as an endorsement of any investment opportunity. Please refer to our Investor Agreement for the terms of our contractual relationship with you if you invest in an issuer through our platform.

Can I contact the issuer?

To get more information on a deal, please review the offering documents. If an issuer accepts your investment commitment, you will be able to send messages to the issuer electronically through the platform and otherwise communicate with the issuer in the discretion of the issuer.

When will I receive the extra perks that come with my investment?

Perks are delivered by each issuer on the terms they set out in their deal. Chime is not involved in the delivery of perks and is not responsible for the issuer’s fulfillment of any perks. However, we generally see that issuers will notify investors of a timeframe for delivery of perks within 30 days of closing an investment.

What if the artist doesn’t hit their fundraising goal?

If an artist is unable to hit their fundraising goal by the stated deadline, your money will be returned to you from the escrow account.

Can an investor sell their shares?

The issuers listed on Chime are privately held companies and are highly illiquid investments, meaning it is not easy to sell your interests. Securities in privately held companies are not registered with the Securities and Exchange Commission and are not publicly traded, and they must be held indefinitely unless they are subsequently registered under the Securities Act or unless an exemption from such registration is available. There may not be a market, public or non-public, for such securities. Such securities may decline in value or even lose all of their value. As such, you should be able to withstand a total loss of any investment. For more details on how an investment might be capable of liquidation, you should consult with your own legal counsel on a deal by deal basis.