New Association Launched to Help Guide Investment Crowdfunding Industry
Earlier this month, a new association was launched to help guide the investment crowdfunding industry.
The investment crowdfunding industry in the United States was launched following the signing of the JOBS Act of 2012. This bi-partisan legislation enabled online platforms to promote securities offerings and heralded a new era of Fintech and opportunity – both for smaller firms in need of funding and investors previously boxed out of participating in some of the most exciting investment opportunities around.
In the past several years since investment crowdfunding became law, the industry has slowly matured and grown. Multiple online investment platforms now offer debt, equity and alternative securities in promising private firms to investors of all sizes and levels of sophistication. This month, a collective group of four of the most prominent online investment platforms have joined together to create a new representative association as the voice of this emerging industry.
The Association of Online Investment Platforms (AOIP) was created with the intent of educating both investors and issuing-firms on the opportunities available in investment crowdfunding. Simultaneously, the new group wants to establish a more cogent voice for the currently fragmented industry.
The AOIP will develop best practices for its members and the investment crowdfunding industry sector. In steering the investment crowdfunding industry, the AOIP is committed to transparency and operational excellence because its members believe the industry depends on the long run experience of investors and issuing firms using investment crowdfunding.
Founding platforms include MicroVentures, NextSeed, Republic, and SeedInvest. Each of these platforms have committed to dedicate resources to help the industry grow. The Founding Directors include, Bill Clark (Microventures), Kendrick Nguyen (Republic) and Ryan Feit (SeedInvest). The group has selected Youngro Lee, CEO and founder of NextSeed, to be the AOIP’s inaugural Chairman / President.
Lee commented on the formation of the new Association:
“Ever since the passage of Regulation Crowdfunding there has been significant confusion and misunderstanding in the market about what online investment and ‘investment crowdfunding’ actually represents. The AOIP was formed in an effort to improve communication and trust between the general public, private companies, online investment platforms, and our regulators and legislators so that collectively we can someday truly democratize access to private capital and investments.”
Over the coming weeks, AOIP will be engaging with both regulators and policymakers to develop fair and transparent practices in the investment crowdfunding sector. Platforms are encouraged to reach out to the AOIP leadership as they welcome additional members.
Learn more HERE.