Evisor Inc. today announced the launch of the 99Funding securities crowdfunding platform (http://www.99funding.com). Crowdfunding is already changing the way that startups are funded, and securities crowdfunding is poised to revolutionize private investment markets, according to Craig Goos and Jim Dowd, Managing Directors. The 99Funding platform offers a secure, transparent, and efficient marketplace for investment crowdfunding.
The Jumpstart Our Business Startups or JOBS Act signed into law by President Obama in April of 2012 created a new class of exempt private offering —the crowdfunding exemption — that will allow companies to raise up to $1 million through investments from retail investors. Private offerings have generally been restricted to small numbers of accredited investors. Investment crowdfunding for the general public is on hold for now, awaiting the promulgation of regulations by the Securities and Exchange Commission (SEC). So for the time being, only accredited investors will be allowed to invest through the 99Funding platform.
As Wall Street veterans, Goos and Dowd emphasize that investor protection is the predominant focus of the funding platform. “We have been working in regulated financial markets for over 20 years,” said Dowd. “We are not surprised that developing crowdfunding rules is taking longer than industry participants had hoped because we understand the complexity of the issues the regulators are facing. Selling securities is not like raising money through donations or product pre-sales. Investor protection has to be the primary issue for the SEC and FINRA, since fraud is always a risk in the securities business.”
The 99Funding platform has been securely engineered to mitigate risk for investors. First, due diligence on the offerings is handled through a partnership with CrowdCheck (http://www.crowdcheck.com), a company that provides transparency and investor protection for crowdfunding and online investments. Second, each offering must be distributed by a registered broker-dealer, which will vet the issuer and the offering terms before listing. This role will be handled by affiliate North Capital Private Securities Corporation, member FINRA and SIPC. Third, BancBox Crowd (http://www.bancboxcrowd.com) provides secure payments and escrow services for all investors and issuers. Investor cash balances and escrow accounts are FDIC-insured. Finally, Continental Stock Transfer & Trust Company (http://www.continentalstock.com) will provide stock transfer agency services to ensure that all transactions are efficiently processed and recorded.
Source: PR Web
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