FINRA regulated broker-dealer Young America Partners (YA Partners) says it will launch a Reg CF (Regulation Crowdfunding) platform powered by Capital Engine.
Reg CF is a securities exemption where issuers may raise up to $5 million from both accredited and non-accredited investors. The exemption was created under the JOBS Act of 2012 ushering in a new era of online capital formation for equity as well as debt. In March of 2021, the Securities and Exchange Commission raised the funding cap of Reg CF from $1.07 million to $5 million – thus making the exemption more viable for firms in need of growth capital. Several other improvements were added as well such as SPVs and the ability to “test the waters” in advance of an offering to better understand investor demand.
YA Partners says these improvements have encouraged them to launch a securities platform that is expected to launch next month.
Capital Engine offers in-house marketplace for private placements as well as a portfolio of services such as onboarding, managing investment offerings, investor reporting and more.
Today there are more than 50 platforms offering securities under Reg CF. Frequently these platforms will also list securities under Reg D and Reg A+ as well. It was not immediately clear if YA Partners would also leverage other securities exemptions. The company says it will mainly focus on funding for early and middle market firms.