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A New Era Begins Today: Introducing SeedInvest’s First $5M Reg CF Offering

As of today, March 15th, we are launching our first Regulation CF campaign under the new crowdfunding rules, the date the new rules go into effect. New Regulation CF rules allow companies to raise up to $5 million from the general public, versus just $1.07 million previously. In addition to the Regulation Crowdfunding cap increasing, the Regulation A+ cap also increased to $75M from $50M, effective today.

The new regulations come at an opportune time. While COVID-19 stay-at-home orders have become the norm for much of the country, online investing has seen a massive spike and both public and private companies are benefiting from this surge of retail investing. In 2020, SeedInvest doubled its investment volume to over $80 million, added ~200,000 new investors to its community, and generated over 3.6 million site visits. So far in 2021, SeedInvest has seen even more significant year-over-year growth.

“The new rules are a big deal for equity crowdfunding,” notes Ryan Feit, CEO & Co-Founder. “They make online fundraising much more attractive and there is already a lot of demand from a number of high-growth startups.”

A long-time leader and innovator in the space, we have been the dominant platform when it comes to raises of over $2 million. In the past year alone, we have successfully closed an average of $8.4 million for companies raising $2 million or more.

“We’ve had a lot of success over the past few years at helping top startups raise $5 to $20 million through Regulation A+,” said Feit. “Now with these new changes, we will be able to help even more companies by also providing them with a compelling way to raise $2 to $5 million though Regulation Crowdfunding.”

 

Our First Deal: Fantasy Sports

We’re excited to be working with Erik Groset and his team to support the growth of Fantasy Sports Co. Check it out here.

Fantasy Sports

Fantasy Sports is a comprehensive platform providing sports gambling tools, analytics, and rewards to help users win. Starting with the company’s flagship products LineStar and TrackWiz, Fantasy Sports has already built a database of over 500K sports fans and is generating from subscription and pay-to-play products.

With March Madness starting this week -an event analysts estimate more than 50 million Americans bet on each year- and with legalized online sports betting in more states than ever before, FSC believes it is well-positioned to take advantage of the legalization of sports-betting across the U.S. The company is backed by key investors such as Social Leverage and Tech Coast Angels and has patented technology and agreements in place with major operators in the space.

This Regulation Crowdfunding round is focused on the release of the company’s third product in the online sports betting world: BetFully (coming soon). BetFully is a rewards program that lets users get up to 10% back on all bets and is modeled after successful retail affiliate programs like Honey and eBates, but with a focus on sports betting and online casinos.

 

Fantasy Sports is offering securities under Rule 506(c) of Regulation D and Regulation CF through SI Securities, LLC (“SI Securities”). The Company has filed a Form C with the Securities and Exchange Commission in connection with its offering, a copy of which may be obtained at Fantasy Sports: /fantasy.sports

 

This post was written by Alexandra Tynion on March 15, 2021

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