The company raising will set a minimum and maximum target (in dollars), for example, $200,000 and $500,000. This enables companies to raise the minimum amount they need to execute their growth plans whilst also striving to achieving a larger sum that will expedite their growth journey. These targets will be outlined in the offer terms and use of funds table in the offer document.
If the minimum target is reached (and funded) the crowd-sourced funding campaign will close successfully and those who have invested will become shareholders!
The company can continue to raise capital when the minimum target is reached and will close their campaign when:
It’s worthwhile noting a company cannot change their minimum and maximum targets once they have opened the campaign for investment.