Tag Archives: Rule 506 (C) Form D

Accredify Offers High Net Worth Individuals an Easy Way to Invest in Private Equity Crowdfunding Investments

16 May

Universal Verification Solution streamlines the entire process with the benefit of technology making it a superior cost-effective standalone solution

By Robert Hoskins

Miami, FL  – Accredify.co has announced it has released Accredify Connect, a universal log-in and accredited investor verification tool that makes investing online simple and safe. Accredify Connect integrates easily into crowdfunding websites to make equity-based online investing possible. The service works in the same manner as Facebook Connect, where Accredify members sign in to portals to instantly qualify as an investor.

New Verification Service Announces Universal Verification Solution

New Crowdfunding Accredited Investor Verification Service Announces Universal Solution

“The landscape for investing is changing in a very big way,” said Herwig Konings, CEO of Accredify, “Thanks to the JOBS Act, private businesses can now raise funds online from professional investors and soon from the American people as well in exchange for equity.” Konings illustrates the crowdfunding phenomenon by referencing the popular ABC TV show, Shark Tank. “With the JOBS Act, anyone who qualifies can now effectively become a shark with their own money. Entrepreneurs aren’t presenting to just five sharks in a room, but to a vast online audience of anyone and everyone who has the desire and ability to invest in that idea’s success. We believe this enablement of consumer power will lead to radical increases in innovation, jobs, and to an overall healthier economy.”

“One thing we recognized as a major bottleneck in this industry was the need for a compliance solution that was simple enough to be adopted by the industry but comprehensive enough to be secure, confidential, and efficient for investors,” said Will Silverman, CFO and co-founder, “Investors should control who gets access to their information. As investment opportunities become more prevalent, investors would otherwise be forced to hand over sensitive financial information to multiple parties in order to meet compliance and pay potentially hundreds of dollars to an attorney.

Accredify streamlines the entire process with the benefit of technology making it a superior cost-effective standalone solution. It’s simple and secure to verify your financials in confidence and, once verified, you receive a certificate that can be printed for offline deals or used online through Accredify Connect, supported by the industry’s leading platforms.

What distinguishes Accredify from other service providers is its relentless focus on making the crowdfunding process better for investors. Unlike competitors who bundle their verification service with other compliance tools for issuers, Accredify’s customer are able to take back control of the verification process and easily invest online with trusted platforms. Issuers benefit from a free-to-use API and an efficient solution for verifying the high net worth status of potential investors over the Internet.

The SEC recently heard from the Investor Advisory Committee (IAC) on this matter of verification with respect to equity-based crowdfunding for the masses. At an April 10th meeting, the IAC’s Barbara Roper said “…if someone comes along and creates the technological solution… it would be expected portals move on to that system.” The IAC reasonably expects a market innovation will be the answer. “You can imagine the solution that would be developed, but it doesn’t exist.”

Thankfully, a solution DOES exist and it’s called Accredify. Konings added, “The JOBS Act is one of the most citizen-empowering pieces of legislation we’ve seen in a long time. Soon it will be easier than ever for entrepreneurs to find individuals who are ready, willing, and able to invest in startups and Accredify is on a mission to empower that vision with compelling solutions that make it possible for Americans to invest in one another to change the world.”

Accredify, LLC is a Miami-based technology company dedicated to providing independent third-party investor verifications for crowdfunding portals, private equity exchanges, broker-dealer portals, and compliant entrepreneurs seeking to raise equity capital through Rule 506(c) filings. Accredify makes investing easier by innovating the verification process for Accredited & Non-Accredited investors who are otherwise asked to repeatedly submit the same financial information again and again to confirm their status, while serving the needs of equity issuers, who are required by law to verify their investors.

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Registry of Accredited Investors’ Research Reports that General Solicitation Helped Raise $575 Million in 6 Months for Equity Investment Deals

10 Apr

Of 700 companies that filed Form D under the 506 (c) rule, 75% reported fund raising goals of under $10 million with almost 40% indicating offering amounts of $1.5 million or less

By Robert Hoskins

San Francisco, CA – On September 23, 2013, the Securities and Exchange Commission (SEC) began accepting filings under Rule 506 (c), a new method of using general solicitation to raise capital for private businesses through accredited investors.  Many see this new rule as a precursor to Equity Crowdfunding, which will permit regulated internet based fund raising from both accredited and non-accredited investors through approved internet portals.

The Registry of Accredited Investors provides CPA designed verification of Accredited Investor status. Quick, Confidential & Secure

The Registry of Accredited Investors provides CPA designed verification of Accredited Investor status. Quick, Confidential & Secure

The Registry of Accredited Investors, a private company that provides verification services to accredited investors, reviewed of all the Rule 506 (c) filings filed through Form D – Notice of Exempt Offering of Securities with the Securities and Exchange Commission since the legislation went effective in late September 2013 through mid February 2014.

Michael Berg, CPA, President of the Registry, noted, “That operating companies using the new exemption had reported raising over $575 million in under 6 months. This horse got out of the gate quickly.  The 506 (c) exemption seems very popular with a wide variety of companies.”

Some other highlights noted in the study:

  • Over 700 companies have filed 506 (c) forms with the SEC.
  • California had the most filings with 139 with TexasNew York and Florida far behind.
  • The average reported age of Companies seeking investment was 2 years with a majority of reporting Companies less that one year old. 80% of filers had less than $1 million in annual revenue.
  • The main industries using the exemption were Banking and Financial Services, Technology, and Real Estate.
  • 75% of all filers reported fund raising goals of under $10 million with almost 40% indicating offering amounts of $1.5 million or less.
  • Women represented only 4% of the Chief Executive Officers identified in the filings.

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