On Monday, we released a new product, SeedInvest Halo, to help angel groups and incubators create their own private investment platforms. The technology allows these groups to privately invite and manage members, manage their deal funnel, syndicate deals, verify accredited investor status, conduct due diligence, electronically sign transaction documents, fund investments into an escrow account and create and manage pooled investment vehicles (LLCs).
We created Halo because we believe that, even with new general solicitation rules, investment transactions will still be most effective when conducted through existing networks and communities where trust already exists.
Lower Investment Amounts; Broader Investor Base; Promote Diversification
With a streamlined process for deal execution (electronic signing & funding) and the ability to automatically pool investors into an LLC, investors will have the opportunity to invest as little as $1,000 in a startup. This will open up angel investing to an entirely new breed of accredited investors, including those who are seeking diversification from public markets and who do not have the time/expertise to professionally diligence and invest in the number of companies necessary to achieve diversification themselves. It will also be much easier for people to do friends & family rounds where the ask from each individual is for smaller amounts (as low as $1,000 each instead of typical minimums of $25,000)
Halo has a robust feature set to make these types of transactions possible, including:
Investors sign legal documents and fund investments online; powerful dataroom streamlines diligence
Automated, patent pending verification system; fully compliant for 506(c) general solicitation offerings
Find new members; streamline communications; manage deal funnel
Pitch Event/Demo Day Support
Accredited Verification; real-time diligence and investing; webcast pitches
LLC Formation and Maintenance Tools
Built in tools to create and maintain pooled investment vehicles; post-closing tax and legal compliance
Instantly share and track deals with other angel groups, venture funds, industry groups and investment banks
This post was written by SeedInvest on September 15, 2016