As Venture Capitalists and Angel investors prepare for the impact of Equity Crowdfunding EarlyShares, the leading Equity Based Crowdfunding platform, is ramping up its Venture Capital and Angel Clubs. EarlyShares intends to start placing securities offerings on its platform – currently limited to accredited investors only. The Clubs are in place to cater to the specific needs of all Angel and VC investors that have any predisposition to invest in Regulation D and/or Crowdfunding offerings listed on EarlyShares. EarlyShares welcomes their questions as they feel out the space and make a decision on whether they stand to benefit from it.
Members of each Club will benefit not only from EarlyShares’ personalization of the process and experience, but they will also receive: 1) The ability to diversify their portfolio holdings and cast a wider net; 2) Access to customizable deal flow; 3) The opportunity to observe tangible market validation as it occurs when others invest (lead) in potential portfolio companies; 4) Relationships with portfolio companies early; and 5) Little to no due diligence costs.
In short, some initial opportunities for members of the VC and Angel Clubs will be (contingent upon rules) to invest in companies utilizing our platform by way of a “syndicated disbursement” (a predetermined funding amount will be invested in each company that is approved for platform inclusion), a “follow-on” round (match or exceed the entire amount of a successful crowdfunding round), a ‘‘close the round’’ investment (close out the remainder of the funding needed for a successful round), and/or early access to certain deals.
Founded in 2011, EarlyShares is an online intermediary that provides a secure Equity Based Crowdfunding and Regulation D platform made possible under the JOBS Act
. The JOBS Act provides increased avenues for entrepreneurs to access capital through changes to certain securities laws and will soon change the traditional supply chain for financing early stage companies. “Even though the supply chain is being altered, VC and Angel investors are poised to play an integral role in the online equity offerings arena. The ability to monitor startup companies, track their potential for success, and ultimately participate in deals online will be accessible and measurable like never before,” says Stephen Temes, Chairman and Co-founder of EarlyShares.
“As the industry evolves and the Club members’ particular needs are fleshed out, EarlyShares will work with its VC and Angel members to structure individualized plans catered to their desired investment activity,” says Jason Burmer, head of Venture Capital and Angel Relations at EarlyShares. “EarlyShares invites all Angels and VC’s who want to know more about either Club, or EarlyShares generally, to reach out to me and I’m more than happy to introduce them to this new investment channel.”