CI reported last month that Jumpstart Micro, a FINRA-regulated Funding Portal able to list securities under the Reg CF exemption, had been acquired by Issuance. Today, Issuance is officially acknowledging the business expansion, noting it will now be able to raise capital under Reg CF as well as Reg A+ and Reg D.
Darren Marble, co-founder & CEO of Issuance – who is also now CEO of Jumpstart Micro, issued the following statement:
“We are excited to expand our services to include Reg CF offerings. With Reg CF’s easier pathway to launch compared to Reg A+, we believe Issuance’s new Reg CF product offering will be a powerful tool for companies looking to raise capital and achieve their growth objectives.”
Issuance states that Jumpstart Micro will provide a new revenue stream for the company adding that Reg CF is a natural “stepping stone” to Reg A+.
Under Reg CF, a company may raise up to $5 million in growth capital by selling securities to both accredited and non-accredited investors. A firm must utilize the services of either a broker-dealer or Funding Portal. A company raising money under the Reg A+ exemption may raise up to $75 million.
Issuance notes that issuers have raised over $1.1 billion under Reg CF, with the market seeing 98% year-over-year growth.
Currently, there are dozens of Funding Portals operating in the space as well as a few broker-dealers. The Funding Portal portion of the business is dominated by a handful of platforms, with most offering the full stack of exemptions to support firms looking for multiple funding rounds.
Marble says the process of launching an investment crowdfunding campaign has never been easier.
“We are excited to launch the first Issuers on our new platform in the coming weeks.”
