North Capital Investment Technology (NCIT) announced today the launch of the 99Funding marketplace, the first online crowdfunding platform for broker-vetted, syndicated private offerings. All deals posted on the platform are vetted by an experienced team of investment professionals and offered through North Capital Private Securities (NCPS), a registered broker-dealer focused on the origination and distribution of private placements. NCPS is a wholly-owned subsidiary of NCIT.
Jim Dowd, Managing Director at NCPS, stated, “We are pioneering the democratization of venture capital, making start-up investing more accessible than ever before.” With as little as $5,000, qualified investors can participate in early-stage financing deals that traditionally have been reserved for angel investors and venture capitalists. Investors pay no fees to join the marketplace or invest in an offering. All fees and expenses are paid by the issuer.
NCPS is uniquely pursuing crowdfunding syndication relationships with other broker-dealers, betting that aggregating deals from multiple sources will prove attractive to investors, an approach that Dowd said has been validated in public investment markets. “Most private funding platforms operate in silos, but investors consistently prefer open architecture, more choice.”
99Funding was designed to be an open marketplace that will give customers access to a broad array of vetted opportunities, originated through a number of different firms. Craig Goos, Managing Director of NCPS, revealed,”We strive to create value for investors — offering access to markets that have traditionally been off-limits, mitigating risk through due diligence, facilitating diversification through lower investment minimums, and reducing costs through innovation and technology.”
Dowd noted his team’s decades of investment experience and expertise in private markets will help the 99Funding platform gain traction with investors. “General solicitation is creating opportunity for investors, but risk has also increased dramatically. The value of professional vetting and due diligence has never been greater.”
99Funding was built utilizing NCIT’s proprietary TransactAPI (TAPI) codebase, which was developed to automate the offering, transaction, and settlement of private securities transactions. TAPI enables an investor to securely create an account, undergo automated KYC, AML, and suitability reviews, digitally sign official deal documents, and electronically transfer funds to escrow with one brief visit to the 99Funding platform.
In addition to providing a seamless user experience, TAPI offers an electronic audit trail to facilitate FINRA and SEC compliance. Custom reporting is available to all broker-dealers who utilize the 99Funding platform.