San Mateo, CA – BancBox, a leading payment services provider, announces today that 18 leading CrowdInvesting platforms have integrated the BancBox Invest API. On top of that, more than $4 Million has been processed on behalf of its partner platforms and that over a dozen offerings have been completed via the Invest API.
BancBox Invest (previously BancBox Crowd) is the only cloud-based, automated, independent escrow solution that ensures that CrowdInvesting portals remain in compliance with FINCEN, FINRA and SEC requirements, specifically Rule 15c2-4. BancBox’s solution was the first independent escrow service to hit the market and has leveraged its first mover advantage to sign up an all-star roster of partner platforms that includes debt, equity, angel-investing and real-estate platforms.
BancBox partners include:
- 99 Funding
- Angel RoundUp
- Patch of Land
BancBox has seen incredible adoption among investors on its first partner platforms with the service processing over $4 million in investments. Additionally, the company announced several additional milestones:
- Over a dozen deals closed implementing the service
- Over 300 accredited investors in the system on 20 different deals
- Average investor funding of approximately $15,000
- Average escrow size of $250,000
“BancBox Invest is a linchpin technology that is helping an entire industry to find its legs. We are excited to have signed up 18 of the leading CrowdInvestment platforms that are helping to usher in this revolution and are displaying incredible leadership and innovation,” said Sanj Goyle, CEO of BancBox. “These platforms represent half of the top-tier CrowdInvestment platforms that we identified when launched the API a few months ago.”
The company is tapping into more than a decade of experience building robust payment solutions, as it rolls out its Invest platform across the industry. Partner platforms look to BancBox for its expertise navigating complex regulatory frameworks and providing rock-solid payment security.
Obviously this is not our standard review style post, we believe that in order to keep ahead of the crowdfunding trend we must devote a section of our site to Direct Public Offerings (DPOs). Going forward we will be researching and reaching out to firms that provide services allowing small companies to raise capital form the public without the expense of a Wall St. investment bank.
Over the last 25 years Direct Public Offerings have ebbed and flowed in both quantity of offerings and success with which those offerings have been received. Our belief is that with the growth of social media, crowdfunding coming mainstream and the passing of the JOBs Act, Direct Public Offerings will finally get the recognition they deserve as a cost effective and democratic means of raising capital for small business.
Over the next few weeks we will be providing reviews of various DPO service providers. The combination of Direct Public Offerings and crowdfunding will in our opinion eventually be the “winner” from the JOBs Act by combining the established secondary markets with the cost effective benefits of an equity crowdfunding style platform hosted directly on the issuing companies website.
Continue Reading Here
- How to use Direct Public Offerings to raise funds (vator.tv)
- Raise Capital Through a Direct Public Offering or DPO (theresourcefulceo.com)
- New Rules Allow Crowdfunding Campaigns to Offer Profit Participation (nysbar.com)
- Indiegogo, Traklight and Crowdnetic Partner to Provide Crowdfunding Educational Webinar Series (sys-con.com)
- Word of the Week: DPO (nancyfriedman.typepad.com)
Industry Pioneers Unite to Construct the Infrastructure Necessary to Support the Rapid Growth of Crowdfinance
NEW YORK–(BUSINESS WIRE)–Crowdnetic, the leading provider of funding portal platform technology and market data solutions, announced today that it has agreed to acquire NowStreet Journal, the preeminent educational platform for the burgeoning industry of crowdfinance.
Crowdfinance, perceived by many as the next frontier in financial services, has been increasingly popularizing emerging asset classes such as peer-to-peer (“P2P”) lending and securities-based crowdfunding. These promising assets democratize the flow of capital by giving America’s smaller investors and businesses newfound opportunities to prosper in a financial system that tends to favor large corporate entities and institutional buyers.
While financial terms of the agreement were not disclosed, upon completion of the acquisition, NowStreet’s Founder, Dara Albright, will join Crowdnetic’s management team as its Chief Strategy Officer. In her new role, Albright will drive the expansion of Crowdnetic’s existing product portfolio as well as work with the team to launch a new line of products specifically designed to help conventional financial service providers increase assets under management, widen margins and add new revenue streams.
“It is an honor for me to join the Crowdnetic team and to have the opportunity to work alongside the very individuals who helped build the infrastructure in the 1990’s that allowed financial services to go online in the first place. Since starting NowStreet a few years ago, it has been my personal mission to help ignite the resurgence of the small cap underwriters who, throughout history, have consistently fostered economic growth by bringing some of the world’s most promising innovations to the investing public. With Crowdnetic’s technology and expertise, I finally have the chance to see this goal to its fruition,” said Albright.
Commenting on the acquisition, Luan Cox, Crowdnetic’s CEO, said, “Dara is a true visionary who, through NowStreet, has brought a great deal of Wall Street awareness to the nascent industry of crowdfinance. This union will not only bring a recognized media brand under the Crowdnetic umbrella, but it will also enable us to broaden our product suite, expand our sales reach and significantly increase both revenue and shareholder value.”
- European Commission on Crowdfunding: 3rd June 2013 (microwdfinance.wordpress.com)
- Gordon Gekko Lives: New Evidence That Greed Is Rampant on Wall Street (business.time.com)
We invite you to the First Silicon Crowdfund Valley Conference which will bring together traditional private investors and crowdfunders. SVCrowdfund provides the participants with the unique opportunity to discuss current state of the industry, to learn from experts in venture capital, business angel and crowdfunding fields, to network and find new partnerships.
The Conference is held on April 4th – 5th, 2013 to celebrate the first anniversary of the JOBS Act signed by President Obama last year. You will hear from people who implement crowdfunding as a part of their current fundraising and marketing strategies and from those who work with SEC to make the equity crowdfunding legal in the United States.
Complete Conference program is being currently finalized and will be available on the website by the middle of February. If you want to get involved as a speaker, sponsor, vendor, advertiser or a volunteer, don’t hesitate to contact us!
Who will benefit from participating in SVCrowdfund?
- Private investors (VCs and Business Angels) who want to learn about the opportunities crowdfunding creates for them
- Startups and innovators examining their fundraising options
- Crowdfunding platforms wanting promote their portals in the capital of innovation and private investments
- Marketing Specialists, Legal Advisors, CPAs looking for new clients and partners
- Students interested in getting involved in private investment or marketing business; or thinking about financing their new venture
- Journalists and business bloggers searching for worthy topics
- Anyone who is considering supporting crowdfunding projects or investing in businesses through crowdfunding
If you belong to one of these categories, join us at the SVCrowdfund!
Silicon Valley Meets Crowdfunders
- Delay in Crowdfunding Rules Hurts Foreign Entrepreneurs (OpEd) (news.terra.com)
- The Crowdfunding Industry Growing Like Taters (prweb.com)
- How crowdfunding’s secondary market could evolve (venturebeat.com)
- Why the SEC Shouldn’t Overthink Its Crowdfunding Regulations (businessweek.com)
- Crowdfunding Shakeup On The Horizon: What’s in it for the Contributor? (prweb.com)
Editor’s Note: The following comes to us from Rose Spinelli, founder of The CrowdFundamentals, a crowdfunding consultancy. Spinelli offers newcomers some tips on how to choose a crowdfunding consultant that’s right for them. The original piece appeared on Spinelli’s blog, and we are reposting it here with her permission. Be sure to follow The CrowdFundamentals @TCFRose.
As trends go, crowdfunding is a toddler: all fired up and streaked with independence, in constant motion and grabbing at any shiny object put in its path, wobbly but growing more confident each day. If crowdfunding were a tactile thing, les enfants terribles would take a bite out of you.
But crowdfunding is not so new that it hasn’t birthed its own progeny—the crowdfund consultant. (I am referring to donor- and reward-based crowdfunding since, to push my metaphor one image too far, equity crowdfunding remains in a protracted period of gestation.) You could argue that the nature of crowdfunding defies such conventional paths, that part of its appeal is that every individual now has the tools and the potential audience to find her own way to success, middlemen be damned. Yet it’s a career track that’s found a foothold, and by the looks of the roster of individuals and companies identifying themselves as such, in my own niche capacity myself included, there are no signs the trend will slacken.
The truth is crowdfunding done well is really hard. It takes a diverse skill set. Creative types, who are big users of this new source of capital, are often weak on the communication, marketing and business end of things. Just scour a popular platform and you’ll see projects with great potential that don’t achieve their goal simply because they don’t know the space well enough to leverage it.
It also takes time to learn how to be successful at crowdfunding. Six months is a reasonable learning curve. Creators would rather be working on their art, innovators are immersed in inventions, and entrepreneurs seem to run on fumes as it is. So there is a need, and the vacuum is filling up, fast.
In an industry so untested, how is an individual or startup supposed to know whom to hire? Just saying you’re an expert doesn’t make it so. Since I spend an ungodly amount of time on the topic, I thought it would be helpful to share some tips I’ve picked up along the way. And since it would defeat the purpose to limit it to just one opinion, I contacted some of my colleagues, with whom I’ve formed a virtual salon on various LinkedIn crowdfunding groups, and asked them to weigh in.
Here’s what’s come of my research:
- Community crowdfunding models that can be done right now (banklesstimes.com)
- 9,001 Website Names on “Crowdfunding”! (lawprofessors.typepad.com)
AdultXfund is a place where companies can offer equity for investment in their adult business and projects – a network that’s dedicated to adult industry entrepreneurs and investors, bringing sexing and interesting projects to new partners, and to helping its members realise their full potential.
Backed by Grow VC, entrepreneurs and funders can have the confidence that the tools and support teams are in place to make sure that everything is secure and reliable.
I know there are or will be others and I will report on them just as I do the non-adult platforms and I fully expect that other niche markets will be seeing their own platforms pop up as the crowdfunding platform market reaches saturation point.
- The Role of the CPA in a Crowdfunding Future (aicpa.org)
- Crowdfunding Pioneers Launch Professional Association in Concert with Regulatory Advocacy Group (crowdfundingtimes.wordpress.com)
- Crowdfunding Tips (startupaddict.com)