FAYETTEVILLE, AR, Sept. 23, 2013 (GLOBE NEWSWIRE) -- EquityNet (www.equitynet.com) is announcing the launch of a new innovative equity crowdfunding platform that is the industry's first to enable Title II of the US JOBS Act. Businesses can now use EquityNet to advertise their need for equity funding across the Internet and take advantage of the lifting of the eighty year-old ban on general solicitation by the Securities and Exchange Commission.
Starting today, businesses are legally allowed to advertise their need for equity capital as a result of the US JOBS (Jumpstart Our Business Startups) Act, which legalized securities-based crowdfunding in two phases. The first phase, or what is called "Title II," goes into effect today, allowing businesses to advertise their need for capital--as long as they are only accepting accredited investors into the offering and filing the correct forms.
According to EquityNet's founder and CEO, Judd Hollas, "We began developing our new platform months before the SEC formally adopted Title II in July, enabling us to create and launch the industry's first crowdfunding platform for businesses to advertise their need for funding. The new EquityNet platform provides all of the necessary capabilities for businesses to advertise their need for funding, and for investors to review those opportunities via our new public 'Browse Companies' feature."
"EquityNet's multi-patented new platform provides businesses a range of tools to advertise their need for funding, including the ability to create a multi-media funding profile, public sharing and publishing mechanisms, a public platform where profiles can be searched and reviewed by investors, and integrated tracking and communication capabilities," says Dr. Josh Eno, EquityNet's Chief Technology Officer.
EquityNet operates one of the industry's leading equity crowdfunding platforms and provides the most advanced technology to its thousands of members, including entrepreneurs, accredited investors, and institutional business supporters. EquityNet's technology enables entrepreneurs, for example, to analyze and refine their business plan and provides investors sophisticated screening technology based on EquityNet's patented algorithmic scoring.
According to EquityNet's VP of Business Development, Matthew Imhoff, "While businesses will not be limited to any specific form of advertisement, including billboards, commercials and digital ads, it is likely that many businesses will turn to crowdfunding platforms like EquityNet that are specifically designed for securities-based crowdfunding, as that is where investors are being attracted."
Some crowdfunding proponents see this development as more than just a positive thing for entrepreneurs--but also for investors seeking a higher volume and quality of deal flow. "I think we're going to see more investors with accredited status become involved in funding early-stage startups; mainly because more startups are able to go directly to the source and solicit them for investment," says Judd Hollas.
Within the next year, Title III of the US JOBS Act is expected to go into effect, allowing non-accredited investors to invest in startups in exchange for equity. Experts have estimated that crowdfunding could expand the population of potential investors from 2 million to over 50 million investors. These new investors are expected to increase the amount of potentially available capital from $1 trillion currently to over $5 trillion. Most importantly, the increase in investments could add 1.5 million jobs over the next 5 years.
To learn more about EquityNet's crowdfunding technology, visit EquityNet crowdfunding technology.
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About EquityNet
Launched in 2005, EquityNet is a pioneering equity crowdfunding platform with multiple patents granted for its advanced capabilities. It is used by thousands of entrepreneurs, angel investors, government entities, business incubators, and other members of the entrepreneurial community to plan, analyze, and capitalize privately-held businesses. EquityNet provides access to 20,000+ individual investors and has helped entrepreneurs across North America raise over $210 million in capital. For more information, visit www.equitynet.com
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