Making private equity investments more readily available
TruCrowd wants to bring private equity investments to every individual (within the legal investment limits), in a market that has previously been reserved only for a select few. TruCrowd offers everyone an alternative source of investment return to traditional share, bond, and mutual fund investments.
TruCrowd is an equity crowdfunding portal providing issuers from the United States with an un-curated, socially networked, and secure online environment where they can raise equity capital from non-accredited investors from around the world. TruCrowd approaches crowdfunding a bit differently: they only have one rule: you must be willing to fully self-disclose in the manner of proactive due diligence, so that the crowd can make an informed decision as to the validity of the equity posting; making it possible for anyone to post an offering.
For investors, you will need to create an investor account and then browse through the offerings posted by truCrowd users. Once you find an opportunity you would like to invest in, you pledge your selected amount and you will confirm your interest within the software; the issuer will need to approve your investment. This functions much in the same way as other crowdfunding platforms. When they approve you, you will be able to see confidential and privileged information about the issuer (background checks, detailed business plans, and any other self-disclosed information for the due diligence process).
When and if the offering receives the total funding required, the money will be transferred from the investor’s bank account into the Offering’s account. If the goal is not met, nothing will happen. If you change your mind about funding an offering, you can remove your pledge at any time, up to the day when the funds will be transferred. Once an equity offering ends successfully, the investor’s investment portfolio is updated on truCrowd and they can continue to grow.
For issuers (entrepreneurs and emergent companies), after establishing your “issuer account,” you must build up the equity offering by meeting requirements listed on the account. First, you will see the minimum self-disclosure (about 150 items, including a background check), this allows investors to perform their due diligence. Then, you will create a strong business plan.
The creation of your equity offering can take between forty five and ninety days, depending on how quickly you can process all the requirements. When you are ready for launch, equity offering are live on the site for a maximum of ninety days. The rest of the process is much the same as other crowdfunding platforms, but more details can be found here.
If you have experienced problems with other crowdfunding platforms, such as not being accepted, truCrowd is definitely worth a look. As with any investment, there is always a risk. Please see the risk warning posted on truCrowd’s site. TruCrowd is currently in pre-Beta, but accepting users now.