On April 5, 2012 President Barack Obama signed off a new bill giving anybody the ability to invest in equity crowdfunding. The SEC is writing out the rules and regulations for the law now, but by this time next year we will all be able to buy into whatever companies we want.
Unfortunately, this is problematic for people who could be interested in the investment opportunities but may not understand that with great investment comes great financial and legal burden.
Fortunately, 530Funds is a new umbrella company that promises to shield you from the backlash of your own oversights. Started in November of 2012, the original intent of the company was to find crowdfunding sources for companies (think of it as the Hotels.com of crowdfunding).
Within a few months they realized many companies needed consulting on which crowdfund platforms were the best fit, so 530Funds extended out a consulting branch to help, and have already seen great success. This month they’re pivoting again to start Crowdentials, a site to help you gauge how much you can invest and if your investment to a company is SEC-compliant.
I was able to talk to Co-Founder Richard Rodman about his company, their plans for expansion, and his previous successes.
What exactly is Crowdentials?
It’s out newest project under the 530Funds LLC. Investment opportunities used to be strictly for the wealthy, but since new legislation has passed anybody can invest up to five percent of their income or two percent of their net worth into companies.
Unfortunately that may be more than some people can afford, so we’re building a platform to help you figure out how much money you can afford to put into a company, financially and legally.
A lot of people make the mistake of overinvesting and end up in a hole they can’t get out of, and others end up not being compliant in their investments, meaning for whatever reason their buy-in is illegal.
We’re building out the platform now so by the time the SEC finishes writing the rules we’ll be ready to help all of our clients be compliant in equity crowdfunding.
What was the inspiration for Crowdentials?
We started 530Funds because at the end of 2012 the projected number of crowdfunding sources was 530. We created a site so all these sources could be found in one place, making it easier for companies to get started. We don’t provide any funding ourselves; we’re more of a matchmaker for companies and other crowdfunding sites.
After a little while people began calling and asking us which sources we thought would be the best match for their startups, so we realized there was a market for consulting companies and we began offering those services.
After that Crowdentials seemed like a logical next step to help our clients safely invest in companies.
What’s your background?
I started my first company, called Flash Crop, an app that allowed students to transform their notes into flashcards instantly, when I was 19. I received a grant from Tech Growth Ohio and went through an accelerator program with that company, where I learned more than I did in three years of business school.
I graduate next year from Ohio University.
What’s next for 530Funds and Crowdentials?
530Funds is doing well, so we’re going to really put our focus and energy into making Crowdentials the go-to source for compliance in equity crowdfunding.
We have a team of interns that are working on this with us so we’re growing our team and growing our name. By the time the SEC regulations come out we will be the number one recognized name for equity crowdfunding.
What can the MeetAdvisors community do to help?
We’re always looking for exposure and capital, but we’re looking for people who are really familiar with equity crowdfunding. We would love somebody who is well-versed in that field to come onto the team, or at least contact us and be a source for us to communicate with.
Posted By Team www.MeetAdvisors.com
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