But as their expensive technology sat idle, they began to look at — and, confusingly, describe — these freely advertised private placements as crowdfunding, even though
the crowd of accredited investors is comparatively very small.
Not exact matches
Equity Investment The backers at these websites are
accredited investors and not yet «
crowds»
of everyday Americans, so these platforms might not fit the typical definition
of crowdfunding.
SeedInvest aims to make it easier for startups to stand out from the
crowd and give
accredited investors the highest caliber
of companies from which to choose.
Let's have a clear understanding: the majority
of equity crowdfunding (or crowdinvesting) platforms that have recently flooded the market, are registered broker - dealers companies (or have to work through registered broker dealers) and fundamentally is an alternative form
of online investment banking for start - ups and early stage companies where as
of now not a
crowd — but only
accredited investors are entitled to invest, just like in the good old days.
In just over three years, OurCrowd has established itself as a major international force in the equity crowdfunding industry, investing over US$ 320 million from its «
crowd»
of 16,000
accredited investors in its portfolio
of 100 companies and five funds, which span major investment sectors including Mobility and Transportation, Machine Learning, Cybersecurity, Digital Health, Agtech, Big Data, and Robotics.
But the SEC is still holding up the bill's implementation, supposedly because
of logistical concerns related to protecting unsophisticated
investors — most
of those who would invest through
crowd funding platforms will not be traditionally
accredited investors — while also ensuring entrepreneurs easier access to capital.