We found the following piece on Texas-based NextSeed quite interesting. In fact, they were the first ever crowdfunding platform to gain FINRA approval under the new Reg CF crowdfunding rules. You can find a link to the rules for this type of crowdfunding entity on the SEC website here. To date, the platform has raised just a little over $3M in funding for its listed companies, but they anticipate that volume will increase in the near future as they gain further traction and exposure. The model they incorporate is unique because their offerings are all debt-based and available solely for consumer-focused brick-and-mortars at present, very different from something you would find on Kickstarter, for instance.
“NextSeed was the very first, crowdfunding portal to receive FINRA approval. But the investment crowdfunding platform was honing its skills and processes under the Texas intrastate crowdfunding exemption before Reg CF was actionable. To date, NextSeed has raised over $3.8 million between the two sets of rules but the platform has taken a decidedly different approach than other crowdfunding platforms. NextSeed only offers debt-based securities and has steered clear of equity and hybrids like the popular SAFEs.
Some industry followers believe that NextSeed is trailblazing the future of Reg CF – at least as the rules stand now. And so far, NextSeed has generated an admirable track record of solid success. One of the top Reg CF platforms, NextSeed boasts a 100% success rate in crowdfunded securities. Meanwhile investors are already experiencing the benefits of their investments by receiving interest payments or revenue sharing securities. While any investment carries intrinsic risk, some of the investment returns appear to be quite strong.
NextSeed was co-founded by CEO Youngro Lee, an attorney by training who worked at several prominent law firms including, Weil Gotshal, Kirkland & Ellis and Cleary Gottlieb. The former private equity lawyer with global experience, Lee shifted his focus to helping small companies access capital while creating a legion of fans and customers.
Recently, on the one year anniversary of Reg CF becoming actionable, Crowdfund Insider caught up with Lee to learn about his experience with investment crowdfunding…”