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FundAmerica Shares Growth Metrics, Plans for 2016

FundAmerica_homepage_Jan2016

This week, crowdfunding compliance solution provider FundAmerica gave us an inside look at some of its top metrics from 2015. Near the top of the list was the $102 million processed by FundAmerica’s platform customers. And of that, only $3.5 million was refunded to investors for deals that didn’t close.

FundAmerica founder and CEO Scott Purcell said he was “surprised” at the low refund figure. “It shows offerings using FundAmerica’s services and methodology are overwhelmingly successful,” he said.

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From left: FundAmerica General Counsel Scott Andersen and Founder and CEO Scott Purcell demonstrated the FundAmerica platform at FinovateSpring 2015.

Specializing in providing back-office tools including escrow, AML, and payment processing, FundAmerica gives investment advisers, broker-dealers, and platform operators the technology to make sure their crowdfunding businesses run efficiently and remain compliant.

Some other interesting metrics from FundAmerica:

  • Number of escrows (506b, 506c, and Reg A): 228 offerings
  • Average investment (506b/c): $50,000
  • Average investment (Reg A): $2,800
  • Total number of platforms: 325
  • Platforms launched in 2015: 85

FundAmerica also noted that it has investors from all 50 states plus the District of Colombia, with most investors coming from California, Texas, Florida, and New York. The vast majority of investors are from the United States (95%); also participating are investors from countries such as China, New Zealand, South Korea, United Kingdom, and Canada.

In addition to the metrics from last year, Purcell highlighted what to expect from FundAmerica in 2016.

  • Grow staff from 21 to 50
  • Launch EB-5 services
  • Support Title III crowdfunding portals
  • Provide APIs for venture exchanges, aggregators, and research firms

Purcell added that FundAmerica will continue to improve its back-office solutions for 506b/c and Reg A offerings, and provide more compliance tools for broker-dealers. “Writing software is nonstop for us,” Purcell said.

FundAmerica made its Finovate debut at FinovateSpring 2015, and launched its Invest Now button in May of that year. Learn more about how the company helps crowdfunders stay compliant in our August profile.