SALT LAKE CITY, May 16, 2016 (GLOBE NEWSWIRE) -- Seed Equity Ventures, LLC (“Seed Equity”), a pioneer in equity-based crowdfunding focusing on seed investments in early stage technology companies around the world, is pleased to announce it will offer investment crowdfunding deals to non-accredited investors on its platform. Seed Equity is currently raising capital for companies under rules 506 (b) and 506 (c) of Regulation D, and while the platform doesn’t have any Regulation Crowdfunding deals listed at this time, it plans to offer them to accredited and non-accredited investors in the near future.
“We’re excited to officially open the Seed Equity platform to non-accredited investors,” said Seed Equity CEO, Todd Crosland. “Now that Regulation Crowdfunding is live, we have fully embraced the investment crowdfunding model. We’re eager to present investment prospects to individuals across the world who are interested in investing under the SEC guidelines.”
The regulations mark the completion of the bi-partisan bill that was signed into law over three years ago.
Highlights of the final Crowdfunding Rules include:
- Issuers can raise up to $1,000,000 over a twelve-month period.
- Investors will have limits on the amount they can invest, based on their income or net worth.
- Crowdfunding must be conducted through a registered broker dealer, like Seed Equity Ventures, or newly created registered funding portal.
- Broker dealers or funding portals must provide an online investing portal, where investors can view and vet companies, engage with the crowd and the companies through the portal.
- In offerings of $100,000 or less, issuers must provide U.S. Generally Accepted Accounting Principles (GAAP) financial statements for the two most recently completed fiscal years (or shorter period for companies not then two years old), and total income, taxable income and total tax reflected on the issuer’s federal tax return for the most recently completed fiscal year.
- For offerings between $100,000 and $500,000, an issuer must provide U.S. GAAP financial statements for these same periods, but an independent public accountant must review these.
- For offerings greater than $500,000, reviewed financial statements suffice for the first offering, but audited financials are required for any subsequent offerings.
Crosland added, “I believe Regulation Crowdfunding will do great things for the startup investment space by potentially helping more startups raise capital successfully while limiting possible fraud. It is an exciting step forward for startups as well as new investors.”
About Seed Equity
Seed Equity Ventures, LLC is a registered Broker Dealer with the U.S. Securities and Exchange Commission and a member of FINRA and SIPC. The firm is authorized to engage in private placement of securities and M&A advisory services. Seed Equity was founded to provide growth equity to entrepreneurs and their startups in exciting industries throughout the world. Seed Equity’s mission is to help find the best and brightest entrepreneurs and connect them with global institutional and individual investors. Seed Equity has over 10,000 members, investors and entrepreneurs from 136 countries around the world.
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Source:Seed Equity Ventures