Netcapital Announces A New Way To Fund and Invest In Startup Companies

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Backed by over twenty tech entrepreneurs and former C-level executives from the financial services, security, telecommunications, game and software sectors

Netcapital, the private securities platform, today launched its comprehensive fundraising and investing platform. The platform blends key infrastructure inspired by public markets with the flexibility of internet fundraising, providing growing companies with the tools they need to rocket through the funding process and helping investors stay engaged. Using Netcapital’s standardized process, entrepreneurs can avoid the drudgery of fundraising and focus on the excitement they are creating, while investors can join in with a few clicks and invest as little as $99.

Thanks to changes in regulation that took effect in 2016, entrepreneurs may now advertise certain offerings over the internet and accept investments from non-accredited investors. Netcapital’s scalable technology helps entrepreneurs leverage their personal network to unlock this new source of funding from friends, family, customers, and followers.

In addition, entrepreneurs can reach a broad network of accredited investors to close larger sums. Netcapital streamlines their experience with easy access to legal agreements, documents for due diligence, and an e-commerce-like purchase process.

“After pounding the pavement to scrape together seed rounds for a couple of companies, I knew there had to be a better way,” said Jason Frishman, Founder and CEO of Netcapital. “When there wasn’t, I knew we had to build it.”

Netcapital’s comprehensive platform offers entrepreneurs everything they need to raise capital at any stage of the growth process by bringing together several partners and services, including:

  • Automated completion of SEC forms and legal documents, reducing the need for major legal fees in typical circumstances
  • An SEC and FINRA registered funding portal to facilitate 4(a)(6) offerings for companies raising a friends-and-family or seed round
  • Broker-dealer relationships to facilitate multiple types of offerings, including simultaneous 4(a)(6) and 506(c) offerings, for multimillion-dollar fundraising
  • An escrow service to make sure funds are dealt with fairly and safely
  • A transfer agent to manage the new class of securities, removing some burden from entrepreneurs and improving recordkeeping for investors
  • A custodian to hold securities and exercise voting rights for investors, streamlining investor relations for companies

Netcapital is backed by a wide range of tech entrepreneurs and business leaders that bring together the best of finance and innovation, including: Jason Robins, co-founder and CEO of DraftKings, Ivan Seidenberg, former chairman and CEO of Verizon, Alan Matthews, founder and chairman of Rapid7, and James Schmidt, former manager of the $4B John Hancock Financial Industries Fund.

“Netcapital appeals to me because I’ve had firsthand experience with the passion and support that comes from an engaged user base, and I’ve seen how that excitement translates into funding,” said Jason Robins, co-founder and CEO of DraftKings and advisor to Netcapital. “I think we could have had just as much success raising money from the fans at the bar as the VCs in the conference room.”

Companies interested in selling securities, and investors interested in buying private securities, can learn more by visiting Netcapital.com.

About Netcapital

Netcapital is a private securities platform that brings together entrepreneurs and investors. For entrepreneurs, Netcapital reduces the complexity and cost of issuing shares, fundraising, and collaborating with investors. For investors, Netcapital provides deal flow and tools to track investments. Through relationships with a funding portal, broker-dealers, a transfer agent, and a custodian, Netcapital provides services to private markets that are inspired by public markets. For more information, visit https://netcapital.com or follow on Twitter, @netcapital.

In this press release, Netcapital refers to Netcapital.com, a web site operated by Netcapital Systems, LLC, which is neither a funding portal nor a broker-dealer. Sections of the web site are operated by Netcapital Funding Portal, Inc., which conducts all 4(a)(6) offerings as a funding portal registered with the United States Securities and Exchange Commission (SEC) and as a member of the Financial Industry Regulatory Authority (FINRA). Sections of the web site are operated by Livingston Securities, LLC, which conducts all 506(c) offerings as a broker-dealer registered with the SEC and as a member of the Financial Industry Regulatory Authority. None of these companies provide investment advice or make investment recommendations; nothing shared in this press release nor posted to the web site should be construed as such.

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Nick Sneath
Netcapital
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