Why do I need to create a NextSeed investment account and provide personal and banking information?
To begin making investments on NextSeed, you must first open an investment account on the platform. There are a couple important reasons for this.
First, all investments on the NextSeed platform are offered by NextSeed Securities, LLC, an SEC-registered broker-dealer and a member firm of FINRA. NextSeed accounts are similar to other federally regulated financial institutions. Whether you’re opening a Robinhood, Fidelity or Vanguard investment account, all financial institutions must satisfy federal Know Your Customer (KYC) & Anti-Money Laundering (AML) requirements. Through the account setup process, we verify your identity and use this information to help prevent fraud. While we try to make the on-boarding process as simple and seamless as possible, we take this responsibility very seriously to prevent fraud and investor identity theft.
Second, by creating a NextSeed account, you’re tapping into a new type of online investment platform. Rather than making one-off investments into alternative assets like startups, small businesses, and real estate, you can easily invest in our curated offerings and manage your portfolio through an integrated dashboard. You will receive any payments made by your portfolio companies, view updates, and receive end of year tax forms through our platform.
If you receive any payments from your investments on NextSeed, you can freely withdraw funds or reinvest into new opportunities on our site to continue building your portfolio.
By connecting your external bank account, NextSeed allows free and unlimited deposits and withdrawals from your account. NextSeed accounts are provided and held at our partner bank, Happy State Bank DBA GoldStar Trust Company, which provides FDIC insurance for uninvested cash in NextSeed accounts (up to $250,000). Investments and payments are all conducted through your NextSeed account.
How does NextSeed protect my information?
Privacy and protection of your data is paramount for us. We employ bank-level security measures on our site, we use Secure 256-bit SSL Encryption, strict access control and audit monitoring of all customer data.
Can I cancel my investment if I change my mind?
If you make an investment commitment in a Regulation Crowdfunding offering, you may cancel the investment when the campaign is still running – anytime until 48 hours before the campaign ends. If the campaign is closing within 48 hours, you will not be able to cancel your investment.
Investments in Regulation D offerings may be closed on more immediately.
Once a campaign closes and the business receives your investment, you cannot cancel it or get a refund at any time in the future. It is important to understand that investments on NextSeed are illiquid and involve a high degree of risk. You should not invest more than you can afford to lose.
What fees does NextSeed charge investors?
Opening an investment account on NextSeed is free. For a limited time, we are also offering all new IRA accounts free account opening and no annual fees. There are no investor fees when making an investment in NextSeed offerings.
NextSeed does typically charge investors a 2% fee on any payments processed from a business. The 2% fee is applied to the gross payment amount facilitated back to investors.
For investments made in prior campaigns offered through the NextSeed Funding Portal, NextSeed US LLC, a 1% fee on payments is applied.