While all the media outlets have been announcing for the past four days that CrowdRise raised $23* million, Random Research has been looking for an official press release issued by the company to confirm the round’s size. It all leads to an article issued by VentureWire for which Random Research has no subscription. While a “big” investment round was confirmed by Fred Wilson from USV via a post, all we have access to is the EDGAR form D filed with the SEC. This public filing suggests CrowdRise placed $8.6 million worth of securities as part of a non-brokered equity financing round. The placement, which started on April 11th, lured a total of twelve subscribers. Until this disclosure CrowdRise had raised an estimated $3.35 million in unregistered securities via one previous financing round. Perhaps the company is not issuing the remaining $14.4 million worth of securities under a registration exemption, perhaps the $23 million is just a commitment and only $8.6 million was called, all we know for sure is that CrowdRise has $8.6 million more in its bank account or on its way.
CrowdRise is a crowdfunding platform for people and organizations to raise support for the causes they are passionate about.
The company, headquartered in Royal Oak MI, is led by Robert Wolfe (President and CEO). CrowdRise elected to keep its revenues undisclosed.
The executive team includes Edward Norton, Jeffrey Wolfe and Shauna Robertson.
The board of directors includes Fred Wilson.
The company has raised an estimated total of $11.95 million via private unregistered security offerings.
*The investment size is outside our usual coverage though the $14.4 million difference in amount raised between what was relayed by the media and what was filed with the SEC made the research interesting.
Amount offered: $8.6 million
Amount placed: $8.6 million
First sale: 04-11-2014
Data as of: 04-25-2014
A first close of $438,000 was initiated by CrowdBouncer on January 20th. 73% of the $600,000 non-brokered equity offering was placed with two investors. The offering will remain open for a year during which the company may raise an additional $163,000. No previous offering was initiated by the company under a registration exemption. The equity offering’s expected net proceeds will amount to $549,000 which excludes $51,000 to be paid toward officers’ salaries. CrowdBouncer is backed by InVentures Group and Seed Capital Partners.
The company develops and markets a Platform-as-a-Service (PaaS) JOBS Act compliance solution for equity crowdfunding portals. While accredited investors verification is the obvious service to offer, the other services clearly position the company to provide structure to the market place by offering identifiers for equity securities via its CrowdSIP as well as a central database for section 302(a) limitations with its Title III Database.
CrowdBouncer, formed in 2012 and registered in 2014, is headquartered in Buffalo NY. It is led by Robert “Bob” Carbone (CEO). CrowdBouncer reported revenues on or below $1, million. The board of directors includes Keith Blakely.
Status: First close
Amount offered: $600,000
Amount placed: $438,000
First Sale: 01/20/14