Second Equity Crowdfunding Investing Portal, PennStarter, Begins Advertising Private Placements Under the JOBS Act

19 Feb

PennStarter carves out niche in the equity funding world, connecting qualified investors to early-stage public and private companies

By Robert Hoskins

PennStarter, based in Coeur d’Alene, Idaho, states that the 2012 JOBS Act began allowing for certain equity funding raises to be advertised through exemption Regulation D, Rule 506(c) in September, 2013. The PennStarter portal is focused on early-stage public and private companies.

PennStarter Equity Crowdfunding Platform and Broker Dealer

PennStarter Equity Crowdfunding Platform and Broker Dealer

While many broker-dealers and issuers have been reluctant to utilize advertising as they must verify the accreditation of their investors when relying on this exemption, the PennStarter portal was designed to make the investment process both open and transparent, while ensuring strict compliance.

Company President Ron Nicklas states, “We have worked hard to put procedures in place to make the process of verifying accreditation as simple for investors as possible. For investors interested in gaining access to quality deals, we believe that the PennStarter platform offers a unique opportunity to connect with early-stage companies.”

PennStarter has carved a niche in the equity funding world, connecting qualified investors to early-stage public and private companies. For companies and their investors, PennStarter offers the security of a FINRA/SIPC member broker-dealer, and thorough due diligence is done prior to listing.

For private companies, PennStarter is uniquely positioned to help properly position them to become publically traded, should they choose to do so. Since one of the typical challenges of investing in private placements is the lack of an exit strategy, this approach has become attractive to investors.

PennStarter is currently working with two companies conducting capital raises utilizing the 506(c) exemption, and which are available only to accredited investors.

  1. Touchpoint Metrics: A fully reporting, early-stage company quoted on the OTCBB under the symbol TPOI. Touchpoint Metrics is a SaaS-based customer experience software and services company working with large, medium and small enterprises to measure and improve the experiences they deliver to their customers.
  2. Funding Wonder: An online lending platform, which blends finance with social networking to provide loans to small businesses. Funding Wonder plans on offering its lending opportunities to both accredited and non-accredited investors utilizing state and federally regulated Crowdfunding after its implementation.

PennStarter is a division of Pennaluna & Company and was launched in late 2013. Pennaluna & Company is a full service stockbroker focused primarily on the mining, metals and Canadian markets since 1926 and many PennStarter opportunities reflect that niche.

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