Miami-based crowdfunding platform EarlyShares announced this week the completion of its more than $1.15 million Series A funding.
Launched in 2012, EarlyShares cofounders Maurice Lopes , Stephen Temes , and Renee Caputi see their investment as an indicator of the potential of the crowdfunding market. Made popular by platforms like Kickstarter and IndieGoGo, crowdfunding allows new businesses to draw capital from a small group of investors.
“We’re proud and humbled by the support and enthusiasm our investors have shown in this first Series A round,” said Temes in a recent press release. “It’s a true reflection of the excitement happening in the equity-based crowdfunding industry.”
And thanks to the JOBS Act passed in April, crowdfunding is set to be big business. The JOBS Act will change securities regulations related to crowdfunding, allowing small businesses to raise funds from a large group of people in exchange for equity. The ACT goes into effect in early 2013 and until then EarlyShares is not allowed to promote real companies that are looking to raise funding. But that hasn’t stopped 7,286 people from pre-registering for EarlyShares.
“We know we are playing an integral role in the shaping of the equity-based crowdfunding movement,” said Temes. “It’s exciting to say the least. Our expertise provides the foundation that the ideal equity-based crowdfunding platform requires.”
While crowdfunding is a relatively new market, the EarlyShares team isn’t new to the investment business. Lopes serves on the Governing Board for the Crowdfunding Professional Association. Temes is a seasoned investor with over two decades of experience in the equities markets and in trading options and Caputi has 25 years of financial services experience.
EarlyShares is looking to help companies with less than $1 million in annual securities sales, startup companies and small businesses that EarlyShares thinks could provide a good return for investors within 3 years of funding . On its website, EarlyShares describes what they are looking for further.
“We want to see tenacious, flexible teams pitching products or services that solve real problems. For us, it’s primarily about the team.”