June 19, 2015
Onevest, the online equity crowdfunding platform that connects early-stage startups with accredited investors, announced today that it has launched an effort to self-crowdfund its own Series A round of financing through its own platform. According to the company, this approach to its Series A is a way to celebrate the implementation of Title IV of the JOBS Act. Starting today, those interested in participating in this round of financing can go to Invest.Onevest.com.
“Given that 65% of the net new jobs are created by small businesses, this is a huge success for our economy and for innovation,” said Onevest cofounder and executive chairman, Alejandro Cremades, in a statement. “Without a doubt, we are experiencing a unique moment in time as now companies can raise different rounds of financing online from anyone in America.”
The JOBS Act has taken a few years to take into effect since it was first proposed. Proposed as a bill to allow startups to crowdfund their investments, the JOBS Act passed through Congress back in early 2012 and was then subsequently signed by President Barack Obama in that following April. But it’s taken a while for the JOBS Act to actually kick into full effect. It took more than a year for the SEC to lift a ban on general solicitation, allowing startups to publicly announce their intentions for fundraising starting in the fall of 2013. At that same time, the SEC released proposed rules for Title III of the JOBS Act (which aim to help companies raise up to $1 million per year through special portals or broker-dealers, such as customers in the community). It wasn’t until the SEC’s surprising release of final rules under Title IV earlier this year, however, that non-accredited investors were finally given permission to participate in private offerings (subject to some provisions).
For the first time in 80 years, startups in the United States have an opportunity to raise up to $50 million from both accredited and non-accredited investors. In the past year, Onevest has managed to help early-stage startups close more than 15 transactions through its equity crowdfunding platform, with each of those transactions averaging between $750,000 and $4,500,000 from accredited investors; the company hopes to double that number of companies this year.
Last year, the Onevest acquired the startup cofounder matchmaking service, CoFoundersLab, and has enabled the company to grow more quickly with, now, more than 80,000 entrepreneurs and 15,000 investors registered on its equity crowdfunding platform. Through its platform, the company enables more than 14,000 introductions to happen every quarter between cofounders. Through CoFoundersLab, Onevest is better equipped at capturing deal flow at the formation stage, giving them 6 months to a year in advance to build relationships with startups helping seek a round of capital.
Onevest’s Series A campaign is now live on their platform. To participate, visit Invest.Onevest.com.
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