Custom Equity Crowdfunding Platform

The operational infrastructure required to support the investors in an equity crowdfunding site is remarkably similar to what Great Lakes Fund Solutions has done since 1982 in support of public alternative investment funds.  If you are launching an equity crowdfunding site, can offer information technology services and systems to support the crowdfunding site and the back office administration/reporting needs of each fund.

The Jumpstart Our Business Startups (JOBS) act and the rules and guidelines that are due from the SEC will mark the birth of the equity crowdfunding industry in the United States during the course of 2014.  Unlike the donation crowdfunding model, equity crowdfunding will require tracking the equity ownership stake of a large number of small investors.  These investors need to be screened for anti-money laundering purposes on the way into the investment and then need to access reports and tax information relating to the investment.  Additionally, some distribution models may allow a commission to be paid to an SEC-registered intermediary, further complicating the back office.  Depending on the structure that is put in place to support the fundraising, additional custody services might be required by a trust company to keep in compliance with the Custody Rule language in the Investment Advisers Act of 1940.

Our preferred partners in providing these services are the open-source, Crowdhoster code for the front end and Adobe EchoSign for subscriptions and transfer processing, but we are always open to a discussion about the best building blocks to use on our client’s behalf.

Great Lakes Fund Solutions can help get your equity crowdfunding site to the marketplace as soon as possible and reduce the work and compliance risks associated with keeping it at the cutting edge.

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