Our Crowdfunding Network Is Growing Part 5

We've finished reviewing all of iFunding's agreements and we're in the back and forth period of getting aligned. I have a property at 1122 Linden in Austin under contract that we're going to target as our first raise on iFunding if we can get aligned on the terms. We have several other investors to fund the deal if things don't work out.

One our my primary concerns is figuring out what the rules are for crowdfunding portals and how the differ from broker-dealer requirements. CrowdCheck had some excellent videos on subjects similar to this, but they lacked the depth to be something to rely on much. I will explore this more with the securities attorneys we visit with in the coming weeks.

CrowdBouncer was introduced to us via CrowdCheck. We're seeking a company that can provide indemnity for their screening services. This was the first company I have found that has somewhat thought this through that is in the business of providing these services. CrowdBouncer offers a warranty and is backed by a notional E&O policy if their algorithms for income flunk and the promoter is later sued by a non-accredited investor and deems that the promoter did not use "reasonable" efforts to ascertain whether or not they're truly accredited. CrowdBouncer is supposed to be arranging a meeting or sending documentation about all of this in the coming week or so. I have a meeting with them next week.

One of the themes that has come up several times is that asset accreditation is far more difficult for screeners to provide. IRS tax returns are easy to audit for income, but tracking net worth is far harder. Most of the companies I have talked to are trying to figure out how to handle these challenges. This will be especially important once Title III is fully in place to provide the services the promoter marketplace needs.

Over the next week I should know more about Regulation D (revised), Regulation A+, and screening services for accredited investors along with what legal warranties they can provide. I'll post more when I know more. Hopefully I'll have a live deal to start experiencing the process via a site in the coming few weeks as well.