Crowdfundraiser announced on Wednesday (October 8th) a new partnership with equity crowdfunding professionals for financing startup companies through various equity crowdfunding platforms.
Currently, Crowdfundraiser is focused on Title I crowdfunding, which includes rewards and donations for various projects and personal campaigns. The company’s latest partnerships and further partnership outreach will attempt to change that.
Specifically, equity crowdfunding presents challenges for companies not licensed as a broker-dealer. In addition, even broker-dealer-backed crowdfunding portals are restricted to allowing for accredited investors to invest in their opportunities. Even when full Title III crowdfunding is implemented, portals that engage in equity crowdfunding will likely need to register as such.
Crowdfundraiser recognizes its limitations by only offering rewards-based crowdfunding to its users. As a result, the company has partnered with several startup capital and incubation firms to bring Title III equity crowdfunding to the a more broad audience. That means companies that are looking for more than just the presale of an exciting product can sell actual shares in a company to accredited (and eventually main street) investors.
The traffic received through Crowdfundraiser may now find the right home. If a user intends to find equity investors for a creative business idea, the site currently falls short. Hence the need for partnerships to assist in this area. The company intends on working directly with both crowdfund advisors, such as Start Capital, and the entrepreneurs themselves to tailor plans that fit the needs of both entrepreneurs and company shareholders.
Crowdfundraiser expects some of the opportunities that cross its plate will later become part of the company’s network of startup capital advisors.