FAQ2020-05-24T14:20:55+00:00

Frequently Asked Questions

Frequently Asked Questions

PetroFunders General

What is PetroFunders and how does it work?

  • PetroFunders is an online marketplace for oil and gas investing. We provide access to accredited investors who want to invest in exclusive oil and gas deals. Investors can browse investments, technical data, review due diligence materials, and sign legal documents securely online. Once invested, investors have access to a personal dashboard 24/7.
  • Oil and gas operators / originators seeking capital can do so by sending materials to info@petrofundersusa.com
  • We are here to simplify oil and gas investing through technology.

Who is PetroFunders?

  • The PetroFunders team is a group of expert professionals with experience in oil and gas, engineering, evaluating, and finance. You can learn more about us here.
  • We are headquartered in Colorado. If you need our contact information, you can find it here.

Where is investor money held?

  • All individual project funds are held with a major financial intuition. Investors receive their money back if a project does not meet the minimum funding target.

Does PetroFunders accept investments from foreign investors or U.S. citizens living abroad?

  • Yes. We can accept investments from foreign investors from most countries. Please consult local legal representation and tax advisor prior to investing.

Investor General

How Do I Invest?2020-05-04T16:21:05+00:00
Step 1

Sign Up / Log In – When you get to the portal, you have the option to Sign Up or Log In. Existing users can move ahead and Log In, but if this is your first time to the portal, you will need to sign up with a new account.

Create an Account – First time visitors to the portal will most likely need to create a new account. Keep in mind that passwords need to be at least 8 characters, and you will need to agree to the Terms of Use & Privacy Policy.

You will need to create a basic profile to access most projects, requiring basic personal information such as your address and phone number. This information is stored on our secure Amazon Web Services-based platform.

Step 2

Click on Invest  – You can choose to invest as an individual, or invest on behalf of an entity (such as a trust). You may be asked to provide information such as a Tax ID number, articles of incorporation, or an operating agreement to verify you are eligible to sign on behalf of this entity.

Step 3

Enter Amount – Enter the amount of the investment. Use the slider bar to determine how much you will invest in the project.

Step 4

Account Information – You then choose between three payment methods. 1) ACH – have a blank check on hand or the account and routing numbers, 2) Wire payment, which will require additional banking information, or 3) Offline payment instructions will be provided if you pay by Check. Here you will fill in your Account Number, Routing Number, Name on the Account, Checking or Savings, and then Personal or Business for check types.

Step 5

Review and Sign Documents – Here you can review and sign the subscription agreement.

Step 6

Signing the Agreement – You have the option to download the agreement to review it, or you can sign it later through your dashboard. However, if you choose to sign now, you will Submit and continue.

Step 7

Signed Subscription Agreement Email – You will receive an email and a Certificate of Investment once you have signed the Subscription agreement and the offering is closed.

Step 8

Pending Investment Email – The project owner will get an email informing them of a pending investment on the offering. After your investment, you will be guided to the Investor Dashboard.

Step 8

Pending Investment Email – The project owner will get an email informing them of a pending investment on the offering. After your investment, you will be guided to the Investor Dashboard.

Other optional steps (required for entity investors or accredited investors)

  • 3rd Party Investor Accreditation – Depending on the particular offering, you may need to upload information such a letter from an attorney or personal accountant verifying your status as an accredited investor.
  • Anti-money Laundering (AML) Verification Required – Here the entity’s associated persons will fill out their information.

Are these investments risky?

  • All investments have some element of risk. Never invest more than you are willing to lose.

Can I sell my securities after buying them?

  • The securities are not freely transferable. Currently, there is no secondary market or liquidity mechanism for these securities.

What happens in the event an investor passes away?

  • Asset ownership will follow their will or be handled by the probate court of their estate. Please consult with your legal counsel.

What happens if I have trouble processing my investment?

Can I modify my investment?

  • No, you cannot modify an investment after you’ve completed your commitment to invest. If you wish to invest a different amount or make other such modifications, you may cancel your previous investment and make a new investment prior to the fund closing.

How do I pay?

  • During the investment process, you will receive specific instructions for that offerings method of payment. The method of payment is specific to each project, so carefully review each step of the investment process. The platform is set up to take investor funds in escrow via ACH, Wire Transfer, or check (via an offline process).

Can I contact an originator / operator with a question about an offering?

  • No. Please contact us at info@petrofundersusa.com for any questions regarding the offering. Directly contacting an operator / originator may result in the loss of site access.

Investor Accreditation

Who can invest in these offerings?

  • Under the Securities Act of 1933. As a result, under current SEC regulation, we are required by law to verify that all our investors are accredited for 506(c) offerings.

How do I verify my accredited status?

  • During the investment process, you will be required to affirm that you are an accredited investor. We use a third party, Invest Ready for this verification process.

What if I am not an accredited investor?

  • Currently, we are required by law to verify that all our investors are accredited. Therefore, at this time you must meet the accreditation status to invest in any of the exclusive offerings on the PetroFunders platform.

How much can I invest?

  • Minimums may vary depending on a variety of factors, but typically begin around $15,000. Minimums amounts will be set based on the specific offering.

Earned Compensation

Are there fees and associated with the Fund?

  • There are organizational fees that cover of setting up the fund such an entity formation, state filings, escrow fee’s, etc. These costs are just to get the fund set up properly. These organizational fees vary depending on the number of states investors are from and the number of investors. The details will be described in the Private Placement Memorandum.

Do we charge transaction fees?

  • PetroFunders does not charge transaction fees. Our transfer agent, PrimeTrust LLC, charges a transaction fee depending on your payment method.

How does PetroFunders get paid?

  • The displayed target returns for all offerings are net of our management and fund fees. PetroFunders earns compensation in the form of a carried interest in each fund. These fees are disclosed on the individual offering page and Private Placement Memorandum.

What happens if PetroFunders goes bankrupt or out of business?

  • PetroFunders is the manager of the SPV (special purpose vehicle) which is created for the sole purpose of keeping your investment secure, separate from PetroFunders. For example, in an SPV, if anything were to happen to our company, a new manager would be appointed for the SPV and take over management responsibilities.

COVID-19

Why is PetroFunder’s launching during the middle of Covid-19?

  • Everyday life has been greatly impacted by this global pandemic, which has resulted in an unprecedented slowdown in economic activity. This has created an incredibly unique opportunity for savvy investors to implement a buy low sell high strategy.

Please contact us at info@petrofundersusa.com if you meet these criteria and would like to be an originator / operator on the platform.

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