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Who has my money?

💰 Who Has My Money?

After you submit your investment and payment through the DealMaker platform, it’s natural to wonder: Where does the money go? and Who holds it until the deal is finalized?

This article explains how funds are handled during the investment process — and clarifies that DealMaker does not hold or custody investor funds.

🔒 DealMaker Does Not Hold Your Money

DealMaker is a technology platform. While we provide the tools to complete your subscription and submit payment, we do not receive, store, or control your funds at any point.

Why DealMaker and Stripe Cannot Hold Your Funds

Under Regulation Crowdfunding (Reg CF), the law requires that investor funds be held by a Qualified Third Party (QTP) — a federally or state-regulated bank or trust company. DealMaker is a technology platform, not a bank. Our payment processor, Stripe, is also not a bank. Neither entity is legally permitted to hold your investment funds in escrow under federal securities law.

This is why your funds are transferred directly to an escrow account at our regulated banking partner as soon as your payment is received.

What Is a QTP?

A Qualified Third Party is a U.S. bank, trust company, or other federally or state-regulated financial institution eligible to hold investor funds. FDIC-insured depository institutions qualify. Payment processors like Stripe do not.

🏦 Where Your Funds Go

Depending on the structure of the offering, your funds will go to one of two places:

1. An Escrow Account (Most Common for Regulation CF and A Offerings)

Many offerings are structured to use a third-party escrow account, typically managed by a registered financial institution. In this case:

  • Your funds are held in escrow until the offering closes

  • They are only released when the issuer meets required regulatory conditions

  • If the minimum raise amount is not reached or the deal is canceled, your funds may be returned to you in full

📌 Escrow accounts are designed to protect investors and ensure regulatory compliance under exemptions like Reg CF and Reg A.

2. Direct to the Issuer (More Common with Private Placements under Reg D)

In other cases, such as Reg D 506(c) offerings:

  • Your funds may be transferred directly to the issuer’s designated account

  • The issuer is responsible for final acceptance of your investment and share issuance

  • This structure may not include escrow and is governed by applicable securities laws

📅 What Happens After I Pay?

Regardless of the payment method or fund destination:

  • Your investment is not finalized immediately

  • The issuer must still review your documents, verify your identity, and formally accept your investment

  • Funds are only released to the issuer once all compliance and closing conditions are met

🔗 Related Article: Is My Investment Fully Funded?

🧾 Will I Get a Receipt or Confirmation?

Yes — after payment submission, you’ll receive:

  • An on-screen confirmation

  • A confirmation email from DealMaker

  • A payment status update in your investor dashboard

You can also download your subscription agreement and other documents from your DealMaker portal.

What Happens If the Offering Doesn't Close?

If the offering fails to reach its minimum raise target by the deadline:

- No securities are issued

- All investment commitments are automatically canceled

- Your funds are returned to you in full from escrow

You do not need to contact anyone — the return is handled automatically. Refund timelines vary by payment method. See: What Happens If the Offering Misses Its Minimum Target?

❓ Need Help?

If you're unsure whether your funds are in escrow or with the issuer:

  • Check the offering documents linked in your dashboard

  • Contact the issuer’s investor relations contact listed in “My Companies”

  • Reach out to DealMaker Support

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