Seed Equity Looks to Streamline Regulation A+ Offerings
Seed Equity Ventures is a sponsor of the Your Mark on the World Center, which publishes GoodCrowd.info.
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Following the passage of the 2012 JOBS Act, the greatest excitement in the startup finance community was on Title III, which has now been implemented by the SEC as Regulation Crowdfunding. Title IV of the Act, however, is proving to be where the real action is.
The SEC’s implemented the rules for Regulation A+ on June 19. An article by Amy Wan at Crowdfund Insider provides some key statistics about offerings being conducted under the act. 105 offerings were filed, 44 of which were “qualified” by the SEC.
Elio Motors raised almost $17 million earlier this year. Paul Elio joined me twice in the last year to discuss his offering, here and here. The scale of that offering suggests appropriately that Reg A+ offerings are not intended for idea-stage or seed-stage transactions. They may be best seen as a path to an early and more affordable IPO, as the shares of a company that has completed a Reg A+ offering can be listed.
Seed Equity Ventures, a sponsor of our work here at GoodCrowd.info, is a FINRA-registered broker dealer providing investment banking services to early-stage companies. Founder and CEO Todd Crosland has indicated that the firm hopes to make it easier and more affordable for small companies to raise money with a Reg A+ offering.
Todd notes that Seed Equity’s inside legal counsel will work with companies and their legal advisors to ensure complete and affordable regulatory compliance. The firm will help with the company’s offering materials, the closing process and “everything in between,” he says.
Seed Equity has an online investing platform with thousands of investors already signed up. New investors can sign up quickly with their streamlined application process, Todd says.
The Seed Equity platform includes a communications portal so issuers (the companies raising money by issuing shares) can communicate efficiently with interested investors.
The platform also includes a connection to a transfer agent so that seamless records are kept of every shareholder from the first sale of shares.
Seed Equity also takes care of a rafter full of regulatory compliance steps from determining investor suitability, anti-money laundering rules and guidelines for knowing your customer (KYC).
All of the information on the platform is secured with Bank Level Security, according to Todd. The platform includes a secure data room where the issuer’s documents and financial records are stored for review by the investors performing their due diligence.
On Thursday, July 14, 2016 at 3:00 Eastern, Todd will join me here for a live discussion about regulation A+ and how Seed Equity can make completing an offering easier. Tune in here then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.
Todd Crosland, Seed Equity Ventures
More about Seed Equity Ventures:
Seed Equity Ventures is a registered broker dealer with the U.S. Securities and Exchange Commission and a member of both FINRA and SIPC, providing investment banking services to startups and growth companies from around the world. Seed Equity believes the best entrepreneurs in the world should be funded, no matter who they are or where they live. Investors throughout the world, should have a voice to choose what the future should look like. They should be able to support entrepreneurs who will build that future. Seed Equity was founded to provide growth equity to entrepreneurs and their startups in exciting industries globally.
A seasoned entrepreneur, Mr. Crosland has demonstrated the ability to build successful teams and companies. Mr. Crosland was the Founder, Chairman and CEO of Interbank FX, LLC (“IBFX”; www.IBFX.com), from 2001 until he sold the firm in 2011. IBFX was a Futures Commission Merchant and Retail Foreign Exchange Dealer registered with the U.S. Commodities Futures Trading Commission. IBFX was also authorized and regulated by the Australian Securities and Investments Commission.
IBFX was a worldwide leader in retail Forex trading services. IBFX offered individual traders, fund managers and institutional customer’s proprietary technology and tools to trade Forex online. IBFX saw Global customers grow to over 40,000, in more than 140 countries. Annual trading volume reached $750 billion. IBFX had 120 employees and offices in Beijing, China; Seoul, South Korea; Sydney, Australia; Salt Lake City, Utah and London, England.
IBFX and Mr. Crosland have received many awards, including: The Ernst and Young Entrepreneur of the Year Award and numerous Inc. 500 awards.
Mr. Crosland holds a B.A. in Business (Business Finance) from the University of Utah. He also currently holds the following Securities Licenses: Series 7, 24, and 63 and previously held series 3 and 30 Licenses.
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