TruCrowd, once a FINRA-regulated Funding Portal, has announced that it will cease operations.
In a message posted on its website, TruCrowd said they have “reached the difficult decision to discontinue our services.”
“For investors seeking information about their existing investments, please contact the companies you invested in directly. As an intermediary platform, TruCrowd maintained a role of connecting investors with opportunities, while the individual companies maintain all investor records and are responsible for ongoing investor relations.
Despite our team’s unwavering dedication and persistent efforts to create a successful investment platform, we have faced challenges that ultimately proved insurmountable. We appreciate the trust you placed in our platform and the opportunity to serve our community of investors and entrepreneurs.”
TruCrowd had been statutorily disqualified by FINRA for some time now. In 2022, TruCrowd was the target of an enforcement action by the Securities and Exchange Commission, with the platform eventually settling the charges leveled by the regulator.
There are 48 former Funding Portals that have exited the sector of crowdfunding, with some transitioning to operating as a regulated Broker Dealer which can provide more services.
A Funding Portal is an entity that was created under the JOBS Act as an intermediary designed to offer securities under Reg CF.
Online capital formation is a highly competitive sector that is dominated by a handful of platforms. Most platforms enable securities offerings under the full stack of securities exemptions, including Accredited Investor only sales, as they seek to scale services.
