EarlyShares.com, a US “crowdfunding” platform funding early-stage and entrepreneurial companies, has signed a strategic alliance agreement with Navocate Business Sales + Acquisitions.
Under the agreement, Navocate will serve as EarlyShares.com’s official provider for merger & acquisition intermediary services to all EarlyShares.com crowdfunded companies. EarlyShares.com will serve as Navocate’s official crowdfunding platform for its early-stage companies, the firms said in a statement.
The agreement takes advantage of the new fund-raising landscape created by the recently signed JOBS Act (for more on this legislation, which is relevant to the wealth management sector, click here).
Once the Securities & Exchange Commission finalizes its rulemaking, EarlyShares.com will raise capital from small investors to fund entrepreneurial companies. Under the JOBs Act, crowdfunded companies can raise up to $1 million from investors through funding portals.
Also, companies will no longer be limited to the 500-shareholder rule, or any other state shareholder count limit, as the act pre-empts state law. The new limit is 2,000 shareholders. Investors with annual incomes of less than $100,000 will be limited to $2,000 investments, while those who make over $100,000 annually will be limited to $10,000.