Company Release – 04/29/2016
HOUSTON, April 29, 2016 – NextSeed US LLC (“NextSeed”) became a Funding Portal member of FINRA on April 28, 2016. Headquartered in Houston, TX, NextSeed (https://www.nextseed.co/) will operate an online investment platform that allows U.S. small businesses to offer debt securities to private investors. NextSeed will be one of the first funding portals in the U.S. to facilitate crowdfunding offerings pursuant to Title III of the JOBS Act (“Regulation Crowdfunding”).
Investors that have not met specific income and net worth qualifications of “accredited investors” have been generally excluded from investing in private businesses. Under Regulation Crowdfunding, however, private businesses in the U.S. will now be able to crowdfund up to $1 million per year by offering securities to all investors (including non-accredited investors) through online platforms operated by funding portals, such as NextSeed, or broker-dealers.
NextSeed will facilitate the offer and sale of debt securities of U.S. small businesses to the general public through its proprietary investment platform. If a small business applies and is qualified, its investment terms will be set before its crowdfunding offering is launched. Anyone will be able to review the offering information (including the business model, team background and required financial disclosures) before establishing a NextSeed account to make crowdfunding investments.
“We truly believe that May 2016 will be looked back upon as a historic moment in the global finance industry,” said NextSeed co-founder and CEO Youngro Lee. “One of the biggest challenges that business owners face is the ability to get the money they need in order to grow. Utilizing debt crowdfunding, we help small businesses access a new source of capital while connecting with passionate fans. At the same time, we’re helping develop a new asset class for investors – the millions of American small businesses that form the backbone of the U.S. economy. Ordinary investors previously had limited investment options, mostly driven by Wall Street. Everyone will soon have the opportunity to invest in hardworking small businesses across the country, so that we can all drive growth and create jobs, together.”
NextSeed was also selected as one of the finalists to participate in the Washington DC Crowdfunding Demo Day on Capitol Hill on May 16, 2016 to celebrate the launch of Regulation Crowdfunding.
NextSeed is not permitted to engage in any crowdfunding transaction involving the offer or sale of securities in reliance on Section 4(a)(6) of the Securities Act of 1933 prior to May 16, 2016. Questions can be addressed to firstname.lastname@example.org.