When you invest on DealMaker, your funds are held by a regulated third-party institution — not by DealMaker. This is a legal requirement under federal securities law.
The Regulatory Reason
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. Stripe — our payment processor — is also not a bank. Neither entity is legally permitted to hold your investment funds.
Who Holds Your Funds
Your funds are held in an escrow account at DealMaker's QTP banking partner. The escrow account:
- Keeps your funds separate from DealMaker's and the issuer's own money
- Releases funds to the issuer only when the offering meets its conditions
- Returns funds automatically to investors if the offering does not close
When Are Funds Released?
Funds are released from escrow when:
- The offering reaches its minimum raise target
- The offering period closes
- All regulatory conditions are met
If these conditions are not met, your funds are returned to you in full.
Need help?
For questions about where your funds are held, review your offering documents or contact DealMaker Support.