Crowdfunding sites AlumVest and GroundBreaker Partner to Use Crowdentials Technology.
Crowdentials, a provider of investor accreditation and equity crowdfunding compliance software, has announced the official launch of its API solution for crowdfunding platforms to help companies, investment firms and other issuers seamlessly verify investor accreditation status. Two crowdfunding platforms, AlumVest and GroundBreaker, have already signed on as early adopters of the Crowdentials technology.
Crowdentials designed its software to bring transparency and efficiency to the tedious investor verification process required for companies that solicit investment capital from investors under the JOBS Act. With privacy being a key concern for individuals, the company utilizes provisions from the U.S. Securities and Exchange Commission (SEC) that allows an investor’s CPA, broker or investment advisor to verify status on their behalf. Crowdentials’ white-label API solution and services include maximum protection of investor information, early detection of suspicious applications and automation tools to provide seamless investor support. The company also offers a “pre-accreditation” service for investors to verify their status through its website, which can take as little as an hour.
“After the SEC’s general solicitation rules went live, we canvassed the market and were very excited to find a partner in Crowdentials, which offers an innovative way to comply with the SEC’s new general solicitation rules with no requirement for investors to provide their confidential personal information,” says Lynn Chen, CEO of AlumVest, an equity- and rewards-based crowdfunding platform connecting entrepreneurs from leading U.S. universities with their alumni investors.
“As an entrepreneur, I recognized the inherent obstacles in getting attention and funding for new ventures. We don’t believe that platforms and issuers should be weighed down by legislation that ultimately affects the quality of deal flow. Crowdentials covers the most ground in the verification process to give investment platforms and businesses peace of mind in a highly scrutinized regulatory environment,” says Rodman.
“Crowdentials’ software lets us focus on our core business and grow it knowing that Rich and the Crowdentials team are taking care of an important aspect of our operations,” according to Stefano D’Aniello, a securities attorney by trade and the co-founder of GroundBreaker, an equity-based real estate investment platform. “We were impressed and found Rich to be very knowledgeable, and we’re confident that his services will match our growing and evolving needs.”
Crowdentials is a graduate of the FlashStarts accelerator program founded by noted entrepreneur and angel investor Charles Stack, who launched the first online bookstore. The company intends to introduce bad actor checks and Title III unaccredited investor crowdfunding tools pending the finalization of SEC regulations.