SAN FRANCISCO, Oct. 30, 2015 /PRNewswire/ -- Alongside today's SEC's 3:1 vote to approve Regulation CF which enabled Title III of the JOBS Act, FundPaaS unveils a new product called "Wisdom", a powerful set of applications, web plugins, APIs and complex 3rd party integrations that can power any Funding Portal or Broker Dealer seeking to raise capital for issuers online.
Wisdom, short for "Wisdom Of The Crowd", comes equipped with a flat fee escrow service, identity verification, and more importantly, your own licensed version of the proprietary "Fund Me" button, which is a simple web app that processes an investment on the fly without investor redirection to a 3rd party site. You can view a one-minute intro video here: https://youtu.be/oZRUFnjiYgg
As FinTech entrepreneurs, FundPaaS recognized the need to process many transactions per offering and keep costs low which is why they partnered with escrow agents to offer a flat fee 3rd party escrow service that does not require a percentage of assets and complies with SEC's 15c2-4 rules so that funding portals can prevent being in custody of assets. For a flat fee of $999, FundPaaS will process two deals and 400 non-accredited investors per month. Each investor thereafter will cost $2 each.
"We've built a secure, scalable, and stable transactional system that enables our business clients to easily self-serve and raise money online for Reg A+, D, and Intrastate offerings by copying and pasting 2 lines of HTML code. With our technology and partnerships, we want Broker Dealers & Funding Portals to do the same for Reg CF filings with just one product. That's Wisdom." said Duy Vo, Co-Founder & CTO of FundPaaS.
FundPaaS has been working on this product for four months and started by building APIs that can help industry practitioners easily onboard investors and issuers. On the investor side, FundPaaS can verify identity, income or net worth, and run anti-money laundering (AML) checks to comply with rules and limits. On the issuer side, they've partnered with due diligence experts to perform Bad Actor and Issuer checks to increase investor protection. "The due diligence, compliance and disclosure services provided by CrowdCheck will help issuers and intermediaries comply with the regulations, and ensure investors get the information they need to make an informed investment decision." said Sara Hanks, CEO of CrowdCheck and FundPaaS partner.
FundPaaS' ultimate mission is to help the 28MM US businesses meet their working capital requirements but they care equally about investor protection. For that reason, through big data aggregation and several vendors, FundPaaS will be able to provide an economic viability score, a sort of business credit and health check, for established issuers that have been in business for at least a year. As part of issuer onboarding, the product also routes the necessary documents for an independent CPA to perform a review or audit depending on the size and type of offering. "CrowdfundCPA is thrilled to see the much anticipated Title III rules approved and looks forward to being a part of the ecosystem to make this revolutionary regulation succeed." said Craig Denlinger, Managing Partner of Crowdfund CPA and FundPaaS partner.
Of equal importance are the necessary investor disclosures and legal forms to file with the SEC. For that purpose, FundPaaS partnered with iDisclose to enable a seamless transition of issuer information to enable Form C filings and the creation of Private Placement Memorandums. "Today's rule making was nothing short of revolutionary and a big win for small and start up business in America. It is time to get to work and make use of this new tool for capital formation. iDisclose intends to streamline the process of preparing the requisite legal disclosure described in today's announcement so entrepreneurs don't get sidelined by complex rules and legal expenses." said Georgia Quinn, CEO of iDisclose.
Lastly, for an additional fee, FundPaaS will start feeding deals via API, into investor pools sourced from family offices, RIAs and brokerage firms after receiving the necessary regulatory approvals in January of 2016. "That will provide the necessary liquidity that's been missing since Title II" said Amilcar Chavarria, FundPaaS' CEO. In preparation for this, FundPaaS already works with one registered transfer agency for investor records management and to ensure good-delivery in secondary trading once restrictions are lifted.
Given its pre-existing customer-to-business (C2B) lending technology where FundPaaS helps do-it-yourself issuers using Title II (Reg D) and Title IV (Reg A+) turn their customers into investors online using their "Lend Me" button, they are poised to pass-through significant economies of scale and become the de facto FinTech standard powering the crowdfunding industry. FundPaaS' Wisdom can be pre-ordered and integrated now ahead of the new crowdfunding rules going live in January of 2016.
Video - http://youtu.be/oZRUFnjiYgg