A List of Crowdfunding Platforms and Related Services to Mark the New SEC Rules


Good things come to those who wait.

Will this proverb prove true for the new crowdfunding regulations that took effect today (May 16, 2016)?

You can get all the details on the U.S. Securities and Exchange Commission website (SEC), but the main upshot of today’s changes is to open crowdfunding investments to non-accredited investors, meaning folks of average and lower income and wealth. The new rules also allow companies to raise up to $1 million through crowdfunding over a 12-month period.

The reason I kicked this off with the proverb is because these rules have been in the making since April 5, 2012, when the Jumpstart Our Business Startups (JOBS) Act was signed into law by President Obama.

This act was passed with the hope of “reopening American capital markets to emerging growth companies.” American small businesses and startups with an eye toward growth should be the main benefactors of these changes – if the JOBS Act performs as advertised. However, I would be remiss if I didn’t note that it’s been nearly four years since the JOBS Act became law and it’s only now that we have the final regulations that implement it.

Are economic, startup, small business, and capital market conditions the same today as they were four years ago when lawmakers were motivated to write this law? Of course not, but let’s hope that the ideas embodied in the act are still relevant and deliver the intended results.

It’s important to note that as the crowdfunding model becomes more accepted and a bigger player in the financial world, a wide range of related products and services are becoming available to both companies and investors. The Small Business & Entrepreneurship Council’s Crowdfunding Demo Day and Celebration on the Hill has brought together a wide array of crowdfunding platforms and related services.

For everyone who can’t make this event, I want to share the list of crowdfunding platforms and crowdfunding service companies that will be there because it will give you a much bigger picture of the crowdfunding scene. And, whether you’re a business looking for funds or an investor looking for a place to put your money, you’re certain to find some good companies to work with. Here is a list of crowdfunding companies slated to participate in the SBEC event:

  • SeedInvest is a platform connecting more than 14,000 venture capitalists, angel investors and accredited investors to highly vetted startups without charging investor fees or carried interest. SeedInvest sources deals from top incubators, accelerators and venture funds.
  • StartEngine is an equity crowdfunding platform, working to revolutionize the startup financing model. Their mission is to empower 5,000 companies to raise capital and create 1 million jobs in the next 5 years.
  • North Capital’s TransactCloud platform is used by broker-dealers, funding platforms, asset managers, and issuers to offer, transact, and settle private placements and other exempt offerings.
  • OfferBoard leverages a powerful technology platform and experienced corporate finance professionals to serve businesses raising up to $50 million in capital.
  • VENTURE.co provides full service securities packaging and fundraising tools to emerging businesses and portals, and provides comprehensive transparent information to investors about offerings in a secure online platform.
  • WealthForge is a financial technology company transforming the outdated way private capital is raised by providing innovative technology and helping capital to flow to its best potential.
  • CrudeFunders is a funding portal that focuses on oil projects that fall outside the domain of the large manufacturers.
  • truCrowd is a funding portal based on frugality. With truCrowd, a newly incorporated start-up may expect to pay less than $1,000 up-front to use Regulation Crowdfunding.
  • NextSeed is a crowdlending platform open to all investors where small businesses can build loyal customers while financing their operations
  • CrowdEngine is a securities compliance platform (white label portal provider) to enable users to be able to crowdfund all offering types in the United States including, Reg D, Reg A+, Title III, Title IV and Intrastate.

Trust and Transparency Companies

  • Accredify is an investor verification service and crowdfunding compliance company focused on the JOBS Act. Accredify’s platform is secure, easy to use, developer-friendly, and maintains the highest levels of compliance.
  • EarlyIQ is a leading provider of simple, secure online diligence and compliance solutions for private markets. Services include accredited investor verifications, Bad Actor checks, and company background diligence reports.
  • KoreConX is a compliance tool that keeps an issuer’s books, capitalization table and disclosures all in order so that they stay compliant with the regulations.
  • Angelspan facilitates a thorough and professional transparency and communication with a company’s investors, potential investors, and other stakeholders interested in the company’s success.
  • iDisclose is an online application that helps you prepare the legal documents you need to crowdfund your company. Like Turbo Tax, you simply fill out an adaptive questionnaire and iDisclose builds the legal document.
  • Equidam is an online DIY platform for business valuation. Equidam is a data-driven technology based on machine learning that enables entrepreneurs to download a full valuation report in a matter of minutes and at a fraction of the cost for consultancy.

Data Analytics

  • FivePlus Trax™ is a low cost, cloud based dashboard that retrieves and interprets key accounting information, both current and projected, fully automating the process of distributing this mission critical data to both business owners and stakeholders.
  • Crowdnetic has provided powerful data and analytics on 506(c) offerings published from leading crowd investing platforms since the implementation of Title II in 2013.
  • Stratifund is a research and education platform that aims to provide all available equity crowdfunding deals on one site, with independent and unbiased reports on each company, clarifying risks.

Funds Management

  • FundAmerica provides escrow, AML, transfer agent and compliance services, all via API and plug & play “Invest Now” transaction engines. It is used by broker-dealers, investment advisers, portals and platforms engaged in crowdfunding.
  • CashShield is a real time fraud prevention solution designed with big data, machine learning and optimized through a self-developed risk management algorithm that maximizes the merchant’s business potential while minimizing fraud.

Other Services

  • IAEOU provides tailored crowd (capital and growth) education for organizations, founders, inventors, and social entrepreneurs combining self-paced online courses and experiential learning.
  • Venture Hive is an entrepreneurship education company providing world-class content and software to support individual and company development from idea through exit.
  • Weekend Angel exists “to provide educational materials to investors that are reasonably tailored to an intermediary’s offerings and investors” by teaching novice investors the art and science of investing in early stage companies.
  • CrowdfundCPA (Artesian CPA, LLC) is a leading CPA firm specializing in audits, reviews, financial reporting, and accounting for startups and small businesses utilizing the JOBS Act provisions.
  • CrowdfundingCRM™ is the first, all-in-one Crowdfunding Marketing Automation, CRM, & Social Media Technology & Planning Tool, designed to help issuers attract and alert interested investors.
  • Assureli offers insurance to protect your equity crowdfunding investments. With Assureli added to your investment, you will make some to most of your investment back if the business you invested in fails, within a certain time period.
  • Crowdfund Intermediary Regulatory Advocates is a not-for-profit organization that helps establish rules, industry standards, and best practices. It works alongside the SEC, the Financial Industry Regulatory Authority, and other governmental and quasi-governmental entities.
  • Crowdfunding Professionals Association is working for the success of every fundraiser and their supporters by providing education, resources and assistance to all stakeholders in the Crowdfunding community.

Crowdfunding Platforms

Crowdfunding has been a topic of discussion on these pages for some time now. Not only have I written on the topic before, but several of our guest writers have posted some excellent articles, many of which were written in anticipation of the new rules. Scroll through our archive of crowdfunding articles. You’re certain to find some that apply to your current situation.