Online capital formation platform Issuance, has expanded its Issuance Express platform to include Reg D 506(b) offerings. Issuance already supports Reg CF (Regulation Crowdfunding) and Reg A+ (Regulation A) exempt securities offerings. The Express service is a streamlined process to invest in a private security offering that includes a “one-minute investor checkout.”
Issuance says the first client is already utilizing its tech stack to raise capital online.
Darren Marble, CEO and co-founder of Issuance, says this is a natural extension of their Reg D 506c product.
Reg D 506c was created under the JOBS Act of 2012. It allows issuers to “generally solicit” or advertise securities offering online. The one caveat is that only accredited investors may participate in a Reg D offering.
“The development was driven out of demand from numerous industry professionals who saw the potential of our platform and wanted to apply it to their traditional private capital raises. With this new product, Issuance can now serve a larger segment of the capital raising market across funds, public companies, and traditional private placements with its ‘Equity Made Easy’ solution,” says Marble.
Marble says that traditional private capital raises typically see larger checks but they are providing a “pain free” process for these investors to streamline and automate the closing process while keeping costs low.
Founded in 2018, Issuance is also in the midst of its own funding round – a self-hosted Reg D 506c offering.