BUFFALO, N.Y., May 20, 2014 (GLOBE NEWSWIRE) -- CrowdBouncer announced today the launch of InvestorID.com (www.InvestorID.com), a free web application for its accredited investor verification services. InvestorID.com offers a user interface through which accredited investors can become verified and receive a virtual "certificate" as evidence of their verified accredited status. Investors can then port their accredited certificate to all CrowdBouncer customer platforms that have integrated the enterprise software, such as CrowdAlliance (www.CrowdAlliance.co), LM2 Network (www.LM2Network.com), CrowdClear (www.CrowdClear.com) and InvestNextDoor (www.InvestNextDoor.com).
In September 2013, new rules went into effect that allow startups and other companies selling securities to raise capital to publicly advertise their offerings over the Internet. The tradeoff is that these companies can only sell securities to individuals that meet certain wealth metrics called "accredited investors" and must take "reasonable steps" to verify that each investor meets these metrics. InvestorID.com is built upon CrowdBouncer's application programming interface (API) which offers investors a variety of methods to securely verify their accredited status and facilitate other compliance tasks that stand in the way of closing.
"One of the biggest challenges with the new rules that permit advertising offerings of securities online is the accredited verification component," said Bob Carbone, the company's founder and CEO. "In order to make this as frictionless as possible, we have offered a free platform at InvestorID.com that accredited investors can use to become verified. Becoming verified in advance makes deal closings faster and easier."
On the other side of the transaction, companies selling securities that need to verify accredited investors can register with CrowdBouncer to claim the accredited certificates issued through InvestorID.com. CrowdBouncer has several future releases on the horizon with additional features covering other compliance tasks involved in private equity deals that are publicly advertised under the new Regulation D rules.
CrowdBouncer (www.crowdbouncer.com) is a Platform-as-a-Service (PaaS) solution for Regulation D compliance in the post-JOBS Act world. A wide variety of financial institutions and issuers of securities use CrowdBouncer to comply with new requirements under Regulation D when advertising securities over the Internet.
The materials on this document are provided for informational purposes only and do not constitute legal advice. The information is offered only for general informational and educational purposes. It is not offered as and does not constitute legal advice or legal opinions.
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