New York-based online network and transactional platform, Onevest has achieved its targeted $2 million in Series A fundraising via a round of self–crowdfunding, carried out on its own platform.
The startup investment and equity crowdfunding platform completed its fundraising with four days to spare before the close of this round of funding.
Onevest noted in a statement that it has been able to close the funding in a month, where it would normally take on an average of four to eight months in the offline world for a tech startup of its size.
In a statement, the company said it launched the Rule 506c offering to raise funds for itself, celebrating the implementation of Title IV of the Jumpstart Our Business Startups Act (JOBS) Act in the US.
According to the US Securities and Exchange Commision’s explanation, under Rule 506c, issuers can offer securities through means of general solicitation, provided that all purchasers in the offering are accredited investors, the issuer takes reasonable steps to verify their accredited investor status, and certain other conditions are satisfied.
506c offerings, in a nutshell, are different from crowdfunding initiatives in that it has fewer restrictions than crowdfunding, except when it comes to who can invest, where the rules are stricter for a 506(c) offering.
Onevest’s leading startup investing marketplaces has over 80,000 entrepreneurs and 15,000 investors registered.
“Onevest has a unique approach, as it captures deal flow at the formation stage via its co-founder matchmaking property site, CoFoundersLab, which gives Onevest six months to one year in advance to build the relationship with the company before the entrepreneur is ready to seek a round of financing,” it said in its press statement.
Via the CoFoundersLab, Onevest is onboarding over 2,000 registered entrepreneurs to its ecosystem every month.
Executive chairman Alejandro Cremades said: “Today we have put a dent in the universe by changing the game of fundraising online. We are lucky and honored to be part of an industry that is revolutionizing what has been an old and outdated model that clearly needed a healthy disruption.”
The company is already putting the capital to work as it has hired a new CFO, Barry Shereck, who has more than 30 years of experience in financial management with early stage companies and has taken four companies public.
Onevest also hired Erica Duignan as the head of deal flow to hone in on bringing high quality startups on its marketplace and to build a world-class team of venture associates, it said.
Duignan is joining Onevest from the renown accelerator program Dreamit Ventures, where she was a managing director focused on company recruiting, fundraising and developing investor relationships.
Co-founder and CEO Tanya Prive noted briefly in an email that Onevest’s fundraising efforts is expected “to continue to unfold positively as time goes on”.