Under Regulation Crowdfunding (Title III of JOBS ACT) anyone can invest as little as $100 in startups and developing companies. The sale of the securities has to happen via a funding portal or a broker-dealer.
Washington, DC, May 16, 2016 (Newswire.com) - TruCrowd, Inc., an equity crowdfunding portal allowing any US company to raise funds from non-accredited investors, announced today that it has been approved by FINRA to be a Funding Portal under Regulation Crowdfunding (Title III of JOBS ACT). The news comes the same day when the Reg CF become effective.
Regulation Crowdfunding allows US startups to raise up to $1 million over a 12-month period via a registered funding portal such as TruCrowd. The companies must file with the SEC and disclose information to investors and the intermediary facilitating the offering, including: description of the business and the use of proceeds, information about officers and directors, the price of the offered securities, the target offering amount, the deadline to reach the target amount and reviewed/audited financial reports. Anyone is allowed to invest over a 12-month period up to 5% of income if less than $100,000 and 10% otherwise.
Even if we are one of the first approved funding portals, we expect - and hope - that many players will join.
Vicent Petrescu, CEO of TruCrowd, Inc
"Under Regulation Crowdfunding, Funding Portals will play a major role for Main Street entrepreneurs who seek funds from their immediate community and don’t want or need all the ancillary services (or added costs) of a broker-dealer.” Says Mr. Sherwood Neiss, General Partner at Crowd Capital Venture Fund (LinkedIn) “TruCrowd represent a viable alternative from Broker-Dealers for these Main Street businesses particularly with their back-end deal room technology and controls over protecting sensitive data.”
TruCrowd has several features built to protect the intellectual property of startups (ID-verified Investors, Data Room) while decreasing both the risk of fraud (Twitter-like Q&A, Regulatory Checks) and the risk associated with startup investing (The Bonus feature, IRA).
“Even if we are one of the first approved funding portals, we expect - and hope - that many players will join. Competition is healthy; it leads to quality and differentiation which are the bricks of a strong foundation when it comes to a lasting industry,” says Vicent Petrescu, CEO of TruCrowd (LinkedIn). “Another major aspect that will contribute to the success of Regulation Crowdfunding is education and awareness. Entrepreneurs and investors must be given access to reliable information explaining the opportunities but also the risks, and I am confident that together with the other intermediaries and service providers we can do a great job in this direction.”
About TruCrowd, Inc.:
TruCrowd, Inc. is a leading funding portal that allows most US-based companies to raise up to $1 million per year from non-accredited investors (anyone). Launched in 2013 to operate under the regulations resulted from JOBS ACT of 2012, TruCrowd built its crowdfunding engine to permit scalability and flexibility.
Source: TruCrowd, Inc.
Share: