As CI has done from time to time, we have recently reviewed the number of FINRA-regulated Funding Portals – platforms offering crowdfunding services under the Reg CF (Regulation Crowdfunding) securities exemption – up to $5 million. Funding Portals were created by the JOBS Act of 2012 – the legislation that legalized online capital formation. A Funding Portal is kind of like a broker light entity, and some of these platforms will also offer securities under the Reg A+ or Reg D exemption. A company may raise up to $75 million using Reg A+, and a firm may raise an unlimited amount using Reg D but may only accept accredited investors. It is common to pair a Reg CF and Reg D offering.
As of today, there are 88 FINRA-regulated Funding Portals, a slight increase to the number since the last time we sampled the list this past April when CI reported there were 83 Funding Portals.
So, which platforms are new to the list?
Alvear Ventures in Miami, Florida, is focusing on small business funding but will help firms raise up to $75 million by partnering with another entity – most likely using Reg A+. Alvear was founded by CEO Stuart Fort. As of today, the website indicates they are accepting applications to fund on the platform but there are no live securities offerings visible at this time.
California-based Angel Estate is another new entrant. The website has a “coming soon” notice on the home page.
Big Crowd in New Jersey focuses on real estate investments under Reg CF. Big Crowd was founded by Amit Raut, and the platform is described as a “commercial, multifamily property and asset management company specializing in the acquisition of income-producing investment opportunities that leverage favorable tax treatment and long-term capital growth for our esteemed clientele.” There are no securities offerings as of today.
Based in Maryland, Caravan Funds is another real estate investment platform. By partnering with Caravan Funds Capital, the company will also offer securities under Reg A+ and Reg D. The company was founded by Adil Faisel. There are currently no real estate investment offers live on the platform. Of note is that Caravan is being advised by Mark Roderick, an OG lawyer in the crowdfunding sector who has advised other real estate platforms.
Climatize Earth Securities is an impact platform that provides access to solar and other green securities offerings. Founded by Dakota Bishop and based in California, there are currently two live offerings and one posted as fully funded. All three were debt offerings – each paying an 8% return.
Crowdfund My Deal in Texas is another real estate investment platform that also offers securities under Reg D. Powered by CrowdEngine, the platform promotes the ability to invest in real estate offerings for as little as $500 – focusing on large growth markets in the South. The operation is controlled by three individuals as well as three other LLCs. There appear to be only test offerings live on the site.
Another Texas-based operation, Crowdsurf Funding Portal, is a Funding Portal that seeks to allow investors to back “creators.” Owned by King Maker Markets, there is a single offering that seems to be testing the waters – Sean Hansen, described as an up-and-coming YouTuber. Preston Troutt is listed as the CEO of the company.
Equity Street Portal is on a mission to democratize corporate finance by providing funding for smaller firms. The mixed-sector site also aims to provide funding for real estate ventures. Operated by Chris Favour, the company lists Seattle, Washington, as its headquarters. Also powered by CrowdEngine, currently, only sample offerings are listed on the site.
FundingHope in Illinois seeks to provide access to capital for underserved communities like minorities and women founders. There are no offerings listed on the site, but the company is promoting a $10,000 bounty for issuers. FundingHope is co-founded by Dorian Dickinson and John Johanson.
Also based in Illinois, Giga Star Portal describes itself as the “Next Gen Crowdfunding Marketplace for Creators and Fans.” To quote the website:
“Creators can offer the public a percentage of their YouTube channel’s future revenue. During a drop, Fans can buy Channel Revenue Tokens (CRTs), which represent rights to a revenue share percentage. After the drop closes, the YouTube Creator receives the funds raised and GigaStar mints the CRTs for Fans. Fans have the rights to receive monthly YouTube revenue (distributed through smart contracts), along with special perks assigned by the YouTube Creator, such as access to exclusive virtual events, and more. After the anticipated 2024 launch of GigaStar’s secondary market, whenever a Fan sells a CRT, the YouTube Creator will receive a royalty each time a CRT trades.”
There are five offerings that all indicate they are closed. The company was founded by Hazem Dawani.
Impact Crowd Portal provides funding for impact-focused investment opportunities (just like its name implies). The site promotes ethical and sustainable investing and ESG. The company, based in Michigan, was founded by Chris and Jon Elias. Securities may also be issued under Reg D.
NetGreen Capital matches investors with farms and agricultural businesses while supporting a sustainable future. The company was co-founded by Tyler Menifield and Rob Amuzzini. The Portal has yet to list its first investment.
SeedStarter in New Jersey shows two offerings for tokens, or digital assets that are testing the waters. The portal was founded by Jesse Hynes. SeedStarter appears to be running a self-crowdfunding round that hopes to raise up to $6 million under Reg A+ at a pre-money valuation of $78 million.
This Funding Portal is interesting simply because it is based in Ireland, according to the documents. WeClimate is another green/impact investing site that displays a single offering that is accepting indications of interest. The founder is Arthur D’Arcy Pierse.
One item of note is that it appears that Fundpaas will be re-animated. This Funding Portal was suspended quite some time ago – and at one point the domain (Custvestor) appeared for sale. The company has been re-instated by FINRA and a recent blog post shares that the company is pivoting to “crowdfunding at the point of sale” using QR codes and blockchain technology.
Exiting firms since CI last reported include:
- ALOA Invest
- Base Note
- EquityDoor
- Launchparty
- Critical Technologies (nvestedwithus.com)
The industry continues to be dominated by a handful of platforms, including Wefunder, StartEngine, and Honeycomb. Also, broker-dealers may issue securities under Reg CF, and there are now several operating in this sector of crowdfunding, providing an alternative to Funding Portals.