May 16 2016 marks the beginning of what could be an avalanche of private equity offerings promoted via the web. Thanks to the JOBS Act and SEC Regulation Crowdfund, which now totals 685 pages of rules to live by for those in the U.S. Equity Crowdfunding space, including brokers and marketers working with entrepreneurs and startups that are seeking to raise money for their initiatives.
When it comes to preparing for today’s “May Day for Crowdfunding”, few have worked harder than the founders of legal document service provider iDisclose.com, which is led by co-founder and CEO Georgia Quinn, a glass-wall breaking securities attorney who has become a leading expert in the domain of documentation for private securities offerings and equity crowdfunding. Adding further credibility to Ms. Quinn’s stature within the space, she is Of Counsel to New York-based business and securities law firm Ellenoff Grossman & Schole LLP. That firm’s ‘name partner’, Douglass Ellenoff, Jr is also the co-founder of iDisclose.com.
While a steadily-increasing number of regulators in Europe and other regions have already embraced equity crowdfunding (led by the U.K. based on number of platforms and deal offerings), it has taken several years since the passage of the JOBS Act in the United States for regulators to actually establish the proper goal posts for this playing field. This several-years-in-the-making planning stage, during which the U.S. Securities and Exchange Commission has been fine-tuning the regulatory regime in which private placement offerings can be ‘advertised and promoted’ to individual investors without the friction long-associated with private offerings available only to institutional and ultra high net worth investors has included the creation of a cottage industry of service providers. Now that the advance planning for a piece of the equity crowdfunding pie has run its course and Monday May 16 is when the curtain will launch, it’s now “Ready, Fire, Aim” time. Or, to hijack another adage, “Let The Games Begin!” With that, few service providers have worked harder or longer in gearing up for “May Day for Crowdfunding” than iDisclose.com.
NEW YORK, NY–(Marketwired – May 13, 2016) – iDisclose, announced today that several of the leading new Title III Crowdfunding funding portals at various stages in the SEC and FINRA approval process will be using iDisclose either on an exclusive basis or as a tool they can offer to assist issuers on their portals. Funding portals committed to compliance are choosing iDisclose as a low cost high quality legal solution. Condensing the 686 pages of SEC rules in Regulation Crowdfunding into one streamlined application was no small feat, but it was essential to iDisclose to assist entrepreneurs through the regulatory process and ensure funding platforms comply with the new regulations. iDisclose is looking forward to working with Republic.co, the new AngelList spin-off currently making its way through the SEC and FINRA application process; Funding Wonder, a Title III platform candidate with a unique focus on small business loans and SeedInvest, an experienced Title II and Title IV platform now entering the retail crowdfunding space.
Former Chief of the Office of Small Business Policy at the SEC, securities regulation consultant and iDisclose advisory board member Gerald Laporte said, “as excited as we are for the launch of investment Crowdfunding and the promise that it holds for entrepreneurs to more efficiently raise capital online, as a securities lawyer, I am mindful of the required securities disclosure that is not only required by the new rules but the practical need to properly advise potential investors both as to the opportunity and all of the risks, that is where iDisclose comes in.”
Co-founder and CEO Georgia Quinn stated that “at iDisclose, we are empowering entrepreneurs to actually comply with the lengthy and detailed regulations set forth by Regulation Crowdfunding. We, like this new industry, are an example of how technology can overcome traditional challenges faced by small and startup businesses when it comes to raising money. I love what we are doing because we protect both the issuer and the investor — there are no losers here.”
Co-founder and CEO of Republic and AngelList alum Kendrick Nguyen said, “few people understand this space better than Georgia. Republic’s collaboration with iDisclose has been important to our development of a product that meets regulatory best practices and is also manageable and affordable to issuers.”
Funding Wonder co-founder and CEO Michael Mildenberger stated, “Title III offers an exciting new way for small businesses to secure debt financing from non-accredited investors but the process must be as frictionless as possible. iDisclose is our secret sauce to easily and efficiently generate required documentation.”
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