Equity Funding Portals for Startups
Are you aware of the FINRA and SEC Rules for Equity Crowdfunding and Equity Funding Portals? Did you know that you can now invest in Startups using FINRA Crowdfunding Rules even if you are unaccredited? Read about FINRA Funding Portals and how they are changing the Equity Crowdfunding industry.
Under new rules effective May 16, 2016, the general public can invest in capital raising by startup companies using Title III of the Jumpstart Our Business Startups (JOBS) Act, enacted in 2012. Title III also known as Regulation Crowdfunding contains key provisions relating to securities offered or sold through crowdfunding.
Discover 20 New Equity Funding Portals Regulated by FINRA and the SEC
What is a funding portal: The funding portal definition per the SEC and FINRA state that a funding portal is a new type of SEC registrant created to facilitate crowdfunding transactions. Compared to broker-dealers, funding portals enjoy a streamlined SEC registration process and have paired down regulatory compliance burdens. A newly created funding portal must; Register with the SEC as a funding portal and gain membership in a national securities association (i.e., FINRA). Funding Portals register with the SEC by filing SEC Form Funding Portal. The SEC Form Funding Portal requires the disclosure of information consistent with, but less extensive than, the information required for broker-dealers.
You can read about the rules created by the Securities and Exchange Commission and Financial Industry Regulatory Authority on this PDF: Final Rule: Crowdfunding – Securities and Exchange Commission. It explains in detail the rules of Title III and how Regulation Crowdfunding works for early stage startup companies seeking capital funding.
A crowdfunding intermediary must register with the Securities and Exchange Commission (SEC) as a broker or as a funding portal and become a member of a national securities association (FINRA). The following crowdfunding intermediaries are registered with the SEC as funding portals and are funding portal members of FINRA. You can see more information on each of these companies directly on the FINRA website.
Below is a list of registered funding portals compiled by Equity Raisers from the FINRA website for our members to compare equity crowdfunding services.
List of FINRA and SEC Approved Crowdfunding Portals
- CrowdBoarders http://crowdboarders.com
- CrowdSource Funded http://crowdsourcefunded.com
- DreamFunded http://dreamfunded.com
- MicroVentures https://microventures.com
- FlashFunders http://flashfunders.com
- GridShare http://gridshare.com
- GrowthFountain http://growthfountain.com
- Indie Crowd Funder http://indiecrowdfunder.com
- Jumpstart Micro http://jumpstartmicro.com
- Mr. Crowd http://mrcrowd.com
- MinnowCfunding http://minnowcfunding.com
- Netcapital Funding Portal http://netcapital.com
- NextSeed US LLC http://nextseed.co
- Small Change http://smallchange.com
- Republic http://republic.co
- Razitall http://razitall.com
- SeedInvest http://seedinvest.com
- StartEngine http://startengine.com
- truCrowd http://us.trucrowd.com
- Wefunder http://wefunder.com
Equity Raisers is currently in pre-launch status while our website is being approved by the SEC & FINRA. Are you interested in joining the team at Equity Raisers?
You can still join the Equity Raisers team as we develop our equity funding portal. We have information about Equity Raisers on our AngelList profile.