What is a Direct Public Offering (DPO)?
A DPO is a securities offering that permits public advertising and allows both wealthy and non-wealthy individuals to invest.
DPOs are legal under state and federal law, and have been for decades. Before DPOs can be legally offered, Issuers must complete a compliance process with the applicable securities regulators.
For more information about DPOs, please see our Resources tab.
Is investment crowdfunding legal?
CEX lists investment opportunities that have gone through a regulatory process that makes it legal for them to be offered publicly. This Site does not offer or sell these investment opportunities – it only provides a centralized place to find these kinds of offerings without any recommendations made on this Site.
To the best of our knowledge, every offering listed on this Site is allowed under applicable state and federal law to be advertised publicly.
Does CEX have anything to do with the new federal law called the JOBS Act passed in April of 2012 that created a new “crowdfunding exemption”?
No. The offerings listed on this Site went through a regulatory process that was in existence long before the JOBS Act law was passed. The crowdfunding exemption created under the JOBS Act has not yet gone into effect.
Is CEX a securities broker-dealer?
No. CuttingEdgeX provides information about existing DPOs. We simply aggregate information that is already available to the public. If you wish to invest in any of the listings found on CuttingEdgeX, you will be required to go to the issuer’s web site. We do not receive any success fees from the issuer nor do we recommend any investment opportunity.
How is CEX different from crowdfunding web sites like Kickstarter and Indiegogo?
DPOs are different from the offerings on crowdfunding web sites like Kickstarter and Indiegogo because those sites only allow supporters to make donations or contributions (sometimes in exchange for a perk) but not investments.
Because DPOs go through a regulatory approval process, supporters can receive a return on their investment in the form of interest, dividends, or other financial returns.
Also, from time to time, CEX lists offerings that are only open to accredited (wealthy) investors that are offered under federal Rule 506(c).
Are there any minimum wealth or income requirements to invest? Are there any other requirements to invest?
Each DPO is different. Usually there is no minimum wealth or income requirement, although your wealth or income may affect the amount you can invest.
There is also usually a requirement related to state of residence.
How do I know if the offerings on your Site are a good investment?
This Site does not make any recommendations about any particular DPO. Potential investors are encouraged to carefully review each offering, obtain financial advice from experts, and only invest what you can afford.
How do I invest?
Simply click on an offering that interests you and follow the instructions from there. To learn about new offerings, please click the Join tab to sign up.
How do I list my offering?
CEX only lists offerings that have completed the regulatory process with applicable securities regulators. Our sister company Cutting Edge Capital helps enterprises complete this process. Click on the List tab to complete our form and one of our team members will contact you with more information about how to list your offering.
How do I complete the required legal compliance to be able to offer a DPO?
If you need help completing the legal compliance process, please contact our sister company Cutting Edge Capital, which helps enterprises complete the DPO compliance process.