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The following was supplied to us by CrowdBouncer.com, we are excited to beta test the tools they are working on to create a standard for Equity Crowdfunding Compliance. This will come in the form of an API available for use on Equity Crowdfunding portals.
We will provide more information and a review once we have the opportunity to use the service.
Provided by CrowdBouncer.com:
CrowdBouncer offers portals a turnkey solution for compliance with Section 302(a) of the JOBS Act. Section 302(a) requires portals to ensure that all investors (including accredited investors) have not invested more than the greater of $2,000 or 5% of their income or net worth* in any 12-month period in Title III crowdfunding offerings, including offerings on other portals. Our Title III Database provides a real-time, centralized repository for transactional data from which portals can make compliance requests to determine how much more an investor may invest in Title III crowdfunding transactions. To ensure investors are supplying accurate net worth and income info, portals can process requests with CrowdBouncer to verify information from tax records and to
verify deposits in accounts. Portals may also implement the CrowdFOLIOTM widget, which is a visual display of whether the investor or issuer is verified through CrowdBouncer and how much more they may presently raise/invest in Title III transactions. Where an investor has been verified by CrowdBouncer (i.e., where the
investor has submitted net worth or income information to CrowdBouncer), the CrowdFOLIOTM widget will calculate and display the amount the investor may presently invest based on the JOBS Act rules and the investor’s previous 12-month investment history. Otherwise, the widget will be based on the minimum $2,000 allowable investments.
We are excited to see the innovation that comes out of Crowdbouncer.com as we move towards equity crowdfunding in the United States.
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