SALT LAKE CITY, Oct. 30, 2015 (GLOBE NEWSWIRE) — Seed Equity Ventures, LLC (“Seed Equity”), a registered broker dealer with the U.S. Securities and Exchange Commission, provides equity crowdfunding and investment-banking services to startups around the world, is excited by the SEC’s final ruling on Title III of the Jobs Act.
“Today’s landmark decision by the SEC will change the landscape for the options Startups will have in financing their businesses. We’re eager to open the Seed Equity Ventures platform to non-accredited investors who are interested in investing in startups under the SEC guidelines,” said Seed Equity CEO, Todd Crosland. “This ruling is going to allow our firm to really embrace the equity crowdfunding model and provide investment prospects to not only accredited investors and venture capitalists, but all individuals across the world.”
The regulations will mark the completion of the bi-partisan bill that was signed into law over three years ago.
Highlights of the Final Equity 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.
- Equity Crowdfunding must be conducted through a registered broker dealer 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.
- There will be an exemption for the financial audit requirement for first time issuers raising more than $500,000.
- Title III – Equity Crowdfunding will become effective January 29, 2016.
By 2016, the crowdfunding industry could account for more funding than venture capital, according to a recent report by Massolution. The report states that global crowdfunding saw fast-tracked growth in 2014, expanding by 167 percent to reach $16.2 billion raised, up from $6.1 billion in 2013. In 2015, the industry is set to more than double once again, on its way to raising $34.4 billion.
According to a recent survey conducted by mattermark, 97% of U.S. respondents noted they would invest in startups given the opportunity. However, 63% of respondents don’t qualify as Accredited Investors ($200k/year in income or $1 Million plus in the bank). Title III now allows this large group of individuals the first opportunity to invest in early stage companies, which was once reserved only for the elite few.
Y Combinator and TechStars startups are among the companies that Seed Equity has raised equity capital for. Seed Equity has a global reach, having raised capital for companies in Hong Kong, London, San Francisco, Los Angeles and other parts of the US. The online investment-banking platform currently has registered investors and entrepreneurs from 114 countries.
Crosland added, “The SEC passing Title III of the JOBS Act will be a watershed event for both startups and investors. Startups and the general investing public will be forever changed.”
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 members, investors and entrepreneurs from over 114 countries around the world.
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