Financial technology and services company
Offering Type – Membership Unit
Offering Size – $7,000,000.00
Price Per Unit – $50,000.00
Min Purchase – 2 Units / $100,000.00
Industry – Financial Technology Services (“FinTech”)
Stage – Growth
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INVESTMENT OPPORTUNITY
Fund X is offering $7.0 million of Membership Units in a pooled investment vehicle managed by San Francisco-based asset management firm, investing in Series B Preferred Equity of a Financial technology and financial services company. If fully subscribed, Fund X will have a 12.28% ownership in the Issuer and have the right to elect three of nine Board Directors of the Issuer. The Issuer will use the proceeds for wages and salaries of production and operations personnel; sales and marketing; improvement of technology infrastructure; implementation of essential programming and integrations; public and governmental affairs; legal and compliance; financial systems improvements; and other expenses. Upon an Issuer liquidity event for Fund X, following the return of members’ invested capital, remaining proceeds will be distributed 80% to the members, and 20% to the manager in the form of a profits interest.
ISSUER’S OVERVIEW
Founded in 2012, the Company is a Nevada-based financial technology (FinTech) and financial services (FinServe) company that offers proprietary software and services to operate custom or white-labeled web-based offering platforms of equity and debt securities by single issuers, serial issuers, and broker dealers (“Clients”) individually or in a marketplace setting. The Issuer generates revenue from platform development, license and support fees, and related service fees.
The platform along with an integrated suite of applications is designed to be compliant with federal and state regulations, and allows Clients to offer privately issued, exempt (Intrastate, Regulation D, Regulation A+ (Tier I & II), Regulation CF (Title III), Regulation S) securities to non-accredited, accredited and institutional investors. Since inception, the Issuer has generated more than $2 million in cumulative revenue, has engaged over 140 clients for portal development, and currently supports over 20 active portals.
Issuer’s Product Offering
The Issuer’s platform can be customized and configured to match each portal operator’s unique business model. The platform contains a suite of modules and features to allows clients to quickly and easily modify elements to accord with the dynamic regulatory environment, as well as to scale to meet market demand. When combined with the integrated services provided by the Company – from digital signatures and secure document management, to secure trading accounts and escrow services – the Company platform becomes a full-service solution. The Company has built three portal packages that are customizable to meet Clients’ common needs. Proprietary portals solicit and sell the securities that are owned or managed by the portal operator. Proprietary portals are primarily used to decrease costs and increase efficiencies of capital acquisition and of advertising and promoting Client capital raises. Marketplace portals solicit multiple issuers and investors, and match them with each other. This could be in a peer-to-peer lending environment, or can take the form of debt offerings or securities offerings for startups or businesses at all stages of growth.
Issuer’s Value Proposition
The Company provides solutions for all stakeholders engaged in the SMB private securities marketplace. Regulators need to perform effective oversight of new emerging players in the space. The Company offers a cost-effective solution for existing regulated stakeholders that is designed to be compliant with current U.S. regulations. Issuers require access to investors and distribution channels in compliance with these regulations. The Company offers a quality portal with access to wide distribution, while providing investor support services and campaign management. Intermediaries often require investor status verification, compliance with other regulatory requirements and best practices, and closer collaboration with other intermediaries. The Company provides a platform design for licensed brokers, RIAs and other intermediaries, and provides them with tools to source and control commission distribution and the syndication process. Finally, investors are always looking for a wide array of alternative investment opportunities with transparent underwriting and reporting. The Company allow investors to source deals on its proprietary platforms, which are designed to help offer transparent underwriting and to leverage technology for full life-cycle reporting.
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contact: [email protected]
