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FAQs
Frequently Asked Questions
There’s a lot to consider before investing in something new and we believe knowledge is power. Browse our most frequently asked questions and answers below so you can be sure you’re making an informed decision.
If you don’t find the answer to your question below, please complete the contact form and we’ll get back to you within 24 hours. Pass the Hat and its affiliates do not provide tax, legal or accounting advice. Investors should consult their own tax, legal, and accounting advisors before engaging in any transaction.
Pass the Hat is only intended for accredited investors in the United States. The term accredited investor is defined by Rule 501 of Regulation D of the Securities Act of 1933. If you qualify, it’s as simple as creating an account, browsing our active opportunities and making an informed choice. As a final step, you will need to have your accreditation status verified by our third-party partner in order to be accepted into any offerings on Pass the Hat.
I’d like to know how to become an investor.
How does the accreditation process work?
Once you’re ready to invest and sign the subscription agreement, we have made the accreditation process as seamless as possible at no cost to you. You can view the verification requirements and documents to prepare ahead of time here. Upon approval, your accredited investor certificate will be automatically imported into your account. The turnaround time is typically two business days.
How long is my accreditation status valid for?
Once verified by our third-party partner, your accreditation status for a particular opportunity is valid for the duration of the investment. Per SEC rules, accreditation verifications are only valid for 90 days after the date of review. When you are ready to make your next investment with Pass the Hat, you will need to ensure your proof of status is up to date and renew as appropriate.
What’s the private investing process? How do I get started?
We publicly share our selection of pre-vetted private market investments, which can be filtered based on your goals, investment minimums and/or interests. From there, you can pick and choose what you’d like to invest in and create a profile. Next, you are granted full access to the investment offering memorandum and associated documents. These documents are made available to help you perform your due diligence and make an informed decision. You should review each offering in detail and consult with your legal, tax, and financial advisors before making any investment decision.
Each opportunity on Pass the Hat is sponsored by Borgman Capital, a private investment firm with a track record of acquiring and adding value to both companies and real estate. From material handling to rental equipment companies, Borgman Capital’s diversified approach has elevated promising brands of varying industries. We sponsor a wide selection of vetted opportunities, making it easier for you to make an informed decision.
What’s Pass the Hat’s track record?
See an offering you like? If you are an accredited investor, all you have to do is create a profile. Then, you'll be granted full access to the investment offering documents and detailed instructions on the process and important deadlines. The investment process includes submitting funds, completing a subscription agreement, and verifying accreditation status through our third-party partner.
How do I invest with Pass The Hat?
Are investments made through Pass The Hat guaranteed?
Investment opportunities available through Pass the Hat are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.
Do you have an investment minimum? If so, what is it?
For most deals on the Pass the Hat, the minimum investment amount is $50,000, though this may vary.
If I create a profile or invest, is my personal data secure?
Our investor portal is hosted by Asset Class, an SOC II certified organization. Learn more here.
When you invest in a Pass the Hat deal, you can view the investment in the investor portal on your Dashboard page. The portal also houses any related documentation including your Subscription Agreement and K-1 Tax Form(s). Additionally, you can expect to receive a quarterly report which includes updates on the investment and financial information. A list view of all your documents across investments is available on the Documents tab.
