Read the full GoodCrowdinfo article and watch the interview here: http://bit.ly/1GeY0bD
In the three years since the JOBS Act was signed into law by President Obama, the world has seen a tremendous proliferation of equity crowdfunding sites. Many, however, anticipated a more rapid implementation of the Act’s Title III rules for investment crowdfunding from ordinary investors. A small group of companies organized themselves as broker-dealers under the old rules and are now doing business. Seed Equity is one of this breed.
Founder and CEO Todd Crosland says, “Seed Equity was built by successful and experienced entrepreneurs and investors, who aren’t only experts in the industry, but have a passion for it. Seed Equity currently has investors, entrepreneurs and members in over 90 countries and has made one international investment to date in a startup that is based in London and came out of the Tech Stars London accelerator.”
“The company’s goal is to connect startups and growth companies with investors from around the world. Those investors can then like, follow, mentor and invest in these startups, which may have the ability to possibly make a large impact,” Todd continues.
Like the other broker dealers in the space, Seed Equity screens deals carefully. “Our investment committee does its due diligence when vetting companies wishing to raise capital on Seed Equity’s platform. That due diligence includes a background check on all officers, directors and 20% shareholders. After that’s completed, then and only then, can a company list their offering on our platform,” Todd says.
There is growing excitement in the industry about “Regulation A+” and Seed Equity intends to be a player in that space as well. “New SEC rules known as Reg A+ provide significantly higher fund raising levels of up to $50m in a 12 month period and provide a landmark attempt by the SEC to allow non-accredited investors to invest alongside institutions and accredited investors. Seed Equity Ventures will look to utilize this new rule as an option for companies it raises capital for,” Todd concludes.
The platform is an appropriate place for social entrepreneurs to raise capital, especially when they have a great technology and growth prospects.
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