CrowdFund Securities, the First Crowdfunding Service Company, Launches Online
Today the first comprehensive crowdfunding services company launched. CrowdFund Securities serves as the agent/representative to those seeking funds from or to invest in the exploding crowdfunding market.
FIRST CROWDFUNDING SERVICE PROVIDER LAUNCHES ONLINE
March 21, 2012
CrowdFund Securities www.CrowdFundSecurities.com announced today its launch of services for every individual and company seeking to join the exploding crowdfunding market. CrowdFund Securities serves as the agent or representative to both the individuals and companies seeking funds via crowdfunding, and for those looking to invest in crowdfunding opportunities.
David Marlett, an attorney, CPA and entrepreneur, founded CrowdFund Securities and serves as its CEO. Marlett said, “We are excited about this explosive market and the promise it holds for needed capital for hundreds of thousands of start-ups, film producers and small companies nationwide.” He added that Kickstarter and so many other crowdfunding platforms have proven staggeringly successful in the past two years, and now platforms are popping up all across the Internet.
According to Marlett, the key is the pending passage by Congress of some form of crowdfunding legislation which will legalize ’equity crowdfunding’, where non-accredited investors can invest relatively small amounts in start-up enterprises, film productions, inventions, etc., take an ownership position and have an expectation of a financial return on their investment. This is currently prohibited by SEC rules. “They will get protections in place,” said Marlett, “and we will see legalized equity crowdfunding within a month or two. That means that companies seeking those funds should start getting their ducks in order now. That’s why we are launching now. We want to help.”
To engage in the crowdfunding market, a company or individual seeking funds must prepare the documents, build their marketing and business plan, and list their offering on a ’crowdfunding platform’, and then manage the list of potentially thousands of small ’donors’ or ’investors’. Kickstarter is perhaps the most well known of these platforms (which have collectively raised over $200 Million over the past two years). Now there are rising competitors to arts-centric Kickstarter, such as IndieGoGo and RocketHub, and several niche ones rising such as TechMoola and GrowVC. And there are a number of charity focused platforms such as Helpers Unite. All of these are working under the donation crowdfunding model (non-equity) where the donor doesn’t receive a monetary return or an equity stake in the company or project being funded. With the new law in the pipeline, most of these donation platforms will add equity crowdfunding to their offerings. There are a several equity-only platforms which are waiting in the wings, anticipating the new law in order to open their doors. These include Crowdfunder and WeFunder. For a more complete list of crowdfunding platforms, see www.CrowdFundSecurities.com.
CrowdFund Securities is also poised to make a difference in keeping the crowdfunding market safe. “Everyone knows, or should know, that start-ups usually lose their investor’s money,” said Marlett. “That is just a fact. But then there are the successes, and that is what is exciting for both the entrepreneurs and the investors.” The key, he noted, was to stay on a sharp watch for the hucksters" He added that CrowdFund Securities will work closely with the crowdfund industry organization CrowdSourcing.org, and support its CAPS program for accrediting crowdfunding platforms.
CrowdFund Securities parses the confusion for start-ups, filmmakers, entrepreneurs, inventors, small business owners, tech innovators, app developers, dog walkers and everyone in between. Regarding their fee structure, Marlett said, “We have an a-la-carte menu, some fees for services, and some contingency basis fees where we’re paid from the funds raised. We aim to be flexible. Our goal is to grease the path... to make it as easy as possible for the entrepreneur, filmmaker, inventor, software engineer to go from idea to funding.”
- Contact Information
- David Marlett
- CrowdFund Securities
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