NextSeed Launches New Product: the NextSeed Community Bridge Note

NextSeed, launched as FINRA regulated funding portal and now a broker-dealer offering the full stack of securities exemptions, has announced a new product to assist small businesses impacted by the Coronavirus pandemic.

According to NextSeed, the NextSeed Community Bridge Note (CBN) will leverage Regulation Crowdfunding (Reg CF) rules to provide small businesses with an “alternative and efficient way to raise flexible, lower cost, lower fee financing.”

NextSeed tells Crowdfund Insider, that they have redesigned their application to streamline the process, with a renewed focus on helping businesses move quickly through the review and diligence process to launch a campaign in as little as 2-4 weeks.
Some of the CBN program highlights:

  • Working capital for established businesses
  • No payments due until Jan 31, 2021
  • Maturity of 48 months
  • Revenue sharing note designed to give flexibility to businesses
  • $10,000 minimum raise (maximum based on projected working capital needs and debt service coverage ratio)

The CBN is using Reg CF so the funding is capped at $1.07 million.

To quote NextSeed:

“This crisis is affecting small businesses across the country, and time is of the essence. We’ve designed this product to provide small businesses the opportunity to raise capital directly from their network and community at favorable but structured terms.   While we will still be running background checks and basic diligence to ensure the businesses qualify for Regulation Crowdfunding, we will not be running our normal diligence process across these offerings. This streamlined process will allow businesses to undergo an expedited review and fundraising process to meet their immediate needs. This also provides potential investors with a uniform framework to determine which businesses they would like to support with their investments.”

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