SEC’s Recent Vote May Ease Operating Restrictions for Nine Finovate Alums

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The U.S. Securities and Exchange Commission (SEC) this week unanimously voted to approve the proposed rules that will govern online crowdfunding. Under these provisions, companies will be allowed to offer and sell securities through crowdfunding.

Some of these companies have been waiting since early 2012, when Obama signed the JOBS Act, for the SEC to create the regulation, which is intended to protect private, non-accredited investors. 

Investors who earn under $100,000 per year will be limited to $2,000 per year investment, or 5% of their income, and those who make over that amount will be limited to invest 10% of their income annually. However, in order to reduce burdens on the companies raising the funds, and the funding portals, the new regulation does not explicitly require them to verify the income of the individual investors.

According to the SEC’s press release, its proposed rules would require SEC-registered intermediaries (broker-dealers, funding portals) to:

    • Educate investors
    • Manage the risk of fraud
    • Provide information about the issuer and the offering
    • Furnish communication channels
    • Facilitate the offer and sale of crowdfunded investments
The proposed rules would prohibit them from:
    • Offering investment advice or making recommendations
    • Soliciting purchases, sales or offers to buy securities 
    • Restricting compensation for solicitations
    • Holding, possessing, or handling investor funds or securities

Before the rules are passed, they must go through a 90-day comment period, after which, they may be altered to reflect the comments. Once the final rules have been decided, the nine Finovate alums below will be able to solicit to non-accredited investors, subject to the SEC’s final ruling.

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Founded: 2011

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Founded: 2012

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Founded: 2010

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Founded: 2010

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Founded: 2012

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Founded: 2012

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Founded: 2010

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Founded: 2012

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Founded: 2011
FinovateSpring 2012 demo

From an operational standpoint, life for these startups will be a bit easier after the SEC passes the provisions, since it will increase the number of investors on their platforms. They will, however, be faced with increased regulation, which Forbes estimates will cost more than $100,000 annually. This estimate includes procuring and offering disclosure documents, enlisting a funding portal, running background checks, and filing an annual report with the SEC.

The first provision of the JOBS Act, which allows companies to advertise to accredited investors, went into effect September 23.

Rebirth Financial Unveils White-Label Crowdfunding Platform

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Rebirth Financial, the New Orleans-based crowdfunding platform that launched publicly earlier this year, recently unveiled its white-labeled platform.

The platform can be tailored to organizations that want to host their own customized crowdfunding platform. Features include:

  • Customized Admin pageRebirthplatform.jpg
    Allows organizations to internally approve projects, oversee traffic, view fundraising goal progress, and change website information.
  • Unlimited fundraiser pages
    These customizable pages support photos, videos, and blogs, can be integrated with social media, and come with IT support.
  • Secure lender panel
    The lender panel comes with search capability, a variety of payment options, and an anonymous lender option

The platform can be hosted in any currency and in any language.

Rebirth Financial demoed at FinovateFall 2011.

Finovate Alumni News– April 19, 2013

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgArvest Bank to deploy IntelliResponse Virtual Agent technology. See them demo at FinovateSpring in May.
  • GMC Software Technology founder Rene Muller wins Lifetime Achievement award.
  • PrivatBank to provide service to customers wearing Google Glass.
  • American Banker interviews Pageonce COO Steve Schultz on the company’s goal to be the “go-to financial app on the phone”.
  • Mountain America CU launches MoneyDesktop’s My Money Manager PFM.
  • Blackhawk Network prices of its IPO of 10,000,000 shares of Class A common stock at $23 per share.
  • American Banker reports: Planwise Courts Bank Partners.
  • Black Enterprise features Bolstr as Tech Startup of the Week.
  • American Banker reports BillGuard has flagged $50M in suspect charges.
  • The Globe and Mail considers how eToro can benefit investors.
  • TechCrunch reports: SMB Inventory Management Startup TradeGecko Partners With Xero Accounting.
  • Rebirth Financial unveils white-label crowdfunding platform.
  • Trustly has now processed 10 billion SEK in payments since it began in 2008, has fully rolled out Direktbetalning in Sweden 
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News– March 26, 2013

  • Thumbnail image for Finovate-F-Logo.jpgTransferWise featured in HuffPost Students United Kingdom.
  • EZBOB investor John Garfield profiled in The Telegraph.
  • Money.co.uk compares money transfers through Azimo.
  • Fiserv partners with Romania-based Eutron Invest to provide Cash and Logistics solution portfolio to the Romanian market.
  • Forbes looks at the “best of the best” debt crowdfunders including Lending Club, Prosper, Zopa, SoMoLend, Rebirth Financial.
  • SecureKey announced availability of its cloud-based briidge.net identity and authentication platform.
  • ID Analytics introduces fraud detection solutions for online retailers.
  • The Globe and Mail lists Expensify as 1 of 5 apps that take the bumps out of business travel.
  • Petter Made, co-founder and COO of SumUp, talks about the advantages of Dublin as a base for business.
  • Credit Union Times reports: Fiserv launches SpotPay.
  • Finextra reports G&D and PayPal team on pre-paid mobile top-ups in Brazil.
  • Practical eCommerce takes a look at Klarna Invoice for OSC programs.
  • CSI’s globalVCard wins top entrepreneurial prize at 2013 Innovation Project.
  • Newfination interviews CurrencyFair’s Brett Meyers.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News– March 5, 2013

  • Finovate-F-Logo.jpgAmerican Banker asks if Atlanta is a fintech startup Mecca and looks at Kabbage and Cardlytics as examples.
  • Actiance debuts Vantage for Lync Voice to capture VoIP calls for Mircosoft Lync users.
  • BBC News looks at BehavioSec’s biometric security.
  • On Deck opens new regional office in Denver, Colorado.
  • IDentity Theft 911‘s chief privacy officer Eduard Goodman talks smartphone privacy with Forbes.com.
  • TransferWise announces support for peer-to-peer international payments using debit cards.
  • TransWare from Compass Plus helps PrivatBank reach peak transaction processing.
  • Balance Financial launches Digital Office suite to create personalized client portal templates that can be customized.
  • Rebirth Financial launches nationally.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Rebirth Financial Launches Nationally

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Last week, small business lending platform Rebirth Financial launched nationally to enable small businesses from across the country to secure loans.

The New Orleans-based company first launched in 2010, and has since provided access to millions of dollars in capital to hundreds of small businesses based in the southeast United States.

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Along with this launch, Rebirth Financial announced the availability of a new program called the Touch Program. This offering assigns borrowers a lending specialist to provide personalized guidance to help them find the right loan.

Rebirth Financial demoed at FinovateFall 2011 in New York.

Finovate Alumni News– July 9, 2012

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgTechCrunch reports HelloWallet brings its PFM to Android.
  • Tradeshift announces Supplier Choice Movement.
  • TASCET uses Financial ICONN technology to mitigate tax return fraud.
  • Timesfreepress.com features Rebirth Financial.
  • ProfitStars recognized as 2012 Microsoft ISV-Windows Azure Partner of the Year.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Rebirth Financial Featured in Forbes

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Last week, New Orleans-based Rebirth Financial was featured in Forbes. The article highlights multiple case studies in which small businesses were unable to secure financing for future projects and turned to Rebirth Financial for help. 

Founded in 2008, the startup assists these borrowers by providing community-funded, peer-to-peer small business loans that average $80,000. CEO Chonchul Gupta describes it as a local stock exchange.

The contributor illustrates the service by describing a brewery owner’s situation:

“In the case of one New Orleans Brewery trying to raise the money to build a canning operation, local lenders could see something national banks couldn’t: people loved their beer, and were going to buy it in droves once it got into cans (they did).”

To learn more about Rebirth Financial, watch its FinovateFall 2011 demo.

Finovate Alumni News– February 13, 2012

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  • Personal Capital launches “Savings Concierge” service for high rates & strong safety.
  • ProfitStars introduces eCommercial Security Awareness Training.
  • Nutmeg shares its Finovate experience.
  • Xero wins 2012 Top New Accounting Product from Accounting Today.
  • Fox Business News highlights Capital Access Network, Kabbage, and On Deck Capital as non-bank loan resources.
  • Kapitall Generation enables next-day funds transfer.
  • Wall Street Journal blog reports TrustedID buys reputation manager, Reppler.
  • Capital Access Network brings in $30 million from Accel Partners.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News– January 30, 2012

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgCrowdsourcing.org features Rebirth Financial.
  • FS Tech examines a few companies presenting at FinovateEurope next week in London.
  • SecondMarket prepares for Facebook IPO by setting its sights on China.
  • Monitise recognized as the winner of the ‘Deal of the Year’ The Grant Thornton Quoted Company Awards 2012.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.