This investment has been a long time coming. Equity Crowdfunding was signed into law under the Jobs Act back in 2012. Most recently, however, the SEC updated their Reg CF to allow entrepreneurs to raise up to $5M per year, use a “test the waters” campaign to gauge investor appetite, publicly promote the offering, take in either accredited or non-accredited investors (which is practically anyone), and so much more.
For Resound Structured Capital, we now have a platform where we can send an entrepreneur needing capital, and use the technology to monitor progress and advisory.
We made a 2019 investment in Fundify when their platform was in early development. Fundify receives 7% of the capital raised in either cash or in equity or a combination of both. To date, Fundify is launched, advisors are working with start-ups to build out their profiles, and the start-ups are already live and taking investment, while Fundify is on target for their goals. We have been tasked by Fundify to raise additional capital, and with it comes the opportunity to participate in a really exciting company at the formation of an industry-wide equity crowdfunding tidal wave.
We are in the final stages of our investment into the Fundify Inc.