Investor Information
Testing the Waters: What It Means for You
Last updated: August 22, 2026
Before a creator can raise money for a title, they are allowed to ask whether anyone would be interested. This page explains what that is, what it is not, and who is actually doing the raising.
What Is 'Testing the Waters'?
Under U.S. securities law, companies that want to raise money from the public must first go through a formal process — filing documents with the SEC, having them reviewed, and only then soliciting investments. But going through that entire process without knowing if investors are actually interested is expensive and uncertain.
Congress addressed this in the JOBS Act of 2012 and the rules written under it. Under Rule 206 of Regulation Crowdfunding, an issuer may communicate with potential investors to gauge interest before filing anything, so long as no money or commitment of any kind is accepted and people are clearly told the communication is exploratory.
That is what an indication of interest on ArchMarket is. It exists so a creator can find out whether an audience would fund their title before they spend money finding out the expensive way.
Who Is Actually Raising the Money
Not ArchMadison, and this is the part most people assume wrongly. Each funded title is raised by the creator's own company, a single-member LLC formed to hold that one title. The creator is the issuer. ArchMadison operates the platform where the title is shown, takes no share of what is raised, and holds no position in that title's investor waterfall.
The raise runs under Regulation Crowdfunding, which lets a company raise from ordinary people rather than only wealthy accredited investors, through an intermediary registered with the SEC as a funding portal or broker-dealer. The investment itself happens on that intermediary's site, not here.
Before anyone can invest, the issuer files its offering statement with the SEC. You will be able to read it, and you should, before deciding anything.
What Your Pledge Actually Means
When you submit a pledge on an ArchMarket campaign:
- You are expressing interest — nothing more.
- No money is taken from you, now or later, as a result of the pledge itself.
- You will receive an email notification if and when formal investment opens for that campaign.
- You are free to decide at that point whether to invest, invest a different amount, or not invest at all.
- You can withdraw your indication of interest at any time before investment opens.
What Your Pledge Does NOT Mean
- It is not a contract or legally binding commitment.
- It does not reserve an investment allocation or guarantee you a spot in any offering.
- It does not mean a formal offering will happen. We may decide not to open investment for a given campaign.
- It does not generate any financial return, equity, or ownership interest.
- It is not a donation. No money is transferred.
Frequently Asked Questions
Will I be charged anything when I pledge?
No. Pledging does not trigger any charge, authorization, or hold on your payment method. No financial information is collected during the pledge process.
How will I know when investment formally opens?
You'll receive an email at the address you provided when you pledged. You'll also see a notification in your ArchMarket account if you have one. The campaign page will update from 'pledge mode' to 'investment open.'
What if I change my mind before investment opens?
You can withdraw your pledge at any time by contacting us at investor@archmarket.io. Once a formal offering opens, withdrawal rules are governed by the offering documents.
Is ArchMarket regulated?
ArchMarket is not a broker-dealer or a funding portal and does not accept investments. When a Series Round opens it is conducted by the creator's own company through an intermediary registered with the SEC and a member of FINRA. Asking whether people are interested, before anything is filed, is specifically permitted by Rule 206 of Regulation Crowdfunding. No securities are currently being offered or sold here.
Are pledges insured or protected?
There is nothing to protect, because no money changes hands. When an offering opens it is conducted through an SEC-registered intermediary and governed by the securities laws, but that is not deposit insurance and nothing guarantees a return. You can lose what you invest.
What is the investment structure when it does open?
A Series Round offers a note issued by that title's own company under Regulation Crowdfunding. An investor is a lender to that one title, not an owner of it. The return is capped: the investor pool takes 80% of what reaches the title until the cap for that round is met, and the creator takes 20%. Once the cap is paid the pool takes nothing further and the creator keeps everything. The note runs for three years from the close of the round, and the company's annual administration fee comes off the top before the split. One title's revenue is never used to repay another title's investors. The note is repaid only from that title's revenue and is not guaranteed by the creator or by ArchMadison, so a title that earns nothing pays nothing, and the capped return is the compensation for that risk. The cap and the full details for any round will be in the issuer's filed offering materials.
Still Have Questions?
We're happy to answer questions about the pledge process or our regulatory approach. Contact us at investor@archmarket.io and we'll respond within two business days.