Disclosures
Platform role and limitations
Plain English first. What Sprowtt is, what it is not, and who is responsible for what.
What Sprowtt is
Sprowtt provides a SaaS application. Companies and their advisors use it to organize offering materials, control who can see them, keep communication and activity records, and review reporting about deal-room activity.
What Sprowtt is not
- Not a broker-dealer, placement agent or investment adviser
- Not a registered federal funding portal, and not a FINRA member, through this website
- Not an escrow agent or bank, and not intended to receive, hold or move investor funds
- Not an investor-introduction service or a marketplace of offerings; Sprowtt does not meet with, find or match investors
- Not a sender of investor communications: a company writes and sends its own notices and updates with Sprowtt's tools
Who does what
- Software functions — performed by Sprowtt
- Deal rooms, access control and permissions; document storage, versions and the audit trail; the tools a company uses to send its own notices and updates, and the record of them; activity records; filing trackers and the closing binder.
- Third-party functions — performed by providers the company or investor engages
- Accreditation and identity verification; banking, escrow and payment processing, under the company's own agreement with the provider it chooses; video conferencing and recording; electronic signature where connected. Each provider acts under its own agreement and its own regulatory status.
- Company and counsel responsibilities
- The choice of exemption and the structure of the offering; the content of every disclosure and communication; investor eligibility and suitability; filings with the SEC and the states; and the accounts that receive investor funds.
Escrow and banking
Companies choose and contract directly with any bank or escrow provider they wish, and pay that provider's stated price directly. The provider — not Sprowtt — holds the funds.
Sprowtt receives no referral fee, commission, markup, revenue share, or other compensation from banks or escrow providers.
Deal-room content
Everything in a deal room is information provided by the company. Sprowtt does not verify it, approve it or endorse it.
Engagement insights
Activity records describe what happened in a deal room. They are informational only. They are not predictions, not recommendations, and not investment, legal, pricing or offering advice, and a pattern in a small number of visits can be coincidence.
Affiliated entities
Sprowtt may be affiliated with Sprowtt CF, a federally regulated funding portal and FINRA member. Sprowtt may also be affiliated with StateCF.com, a Florida OFR-registered intermediary. Registration does not imply that such person has been sponsored, recommended, or approved by the state or an agency or officer of the state or by the United States or an agency or officer of the United States. They provide separate services under their own terms and regulatory status. Looking for a regulated crowdfunding portal? That is Sprowtt CF, not this website.