Image: “Can Blockchain Save the Middle Class? Technology and the Future of Crowdfunding” panel discussion at Consensus 2019, May 15, 2019, @AlphaPointLive, via Twitter
Equity crowdfunding startup Fundopolis has partnered with
AlphaPoint, a blockchain technology provider, to integrate blockchain into its
platform, the companies said on Wednesday at Consensus, a leading annual
blockchain and crypto taking place this week in New York.
The Fundopolis equity crowdfunding platform, which has yet
to launch, will allow companies to raise funding directly from the public.
Business owners will get to choose the terms for the investments they issue and
pay investors back with money, a stake in the business, or both.
Equity crowdfunding refers to the online offering of private
company securities to a group of people for investment. In the US, equity
crowdfunding began booming in 2012 with the launch of some of today’s top
platforms, including Wefunder and SeedInvest.
to equity crowdfunding platform StartEngine, US companies raised a whopping
US$8.9 million in the first month of 2019 through equity crowdfunding
platforms. Wefunder and StartEngine raised US$3.2 million and US$2.8 million
respectively, representing 33.3% and 29.1% of market shares.
The collaboration with AlphaPoint will see Fundopolis leverage
AlphaPoint’s cloud-based platform to power the issuance of equity crowdfunding perks,
allowing customers who are raising funds on the portal to easily interact with
their investors, and provide automation for key security behaviors and other
back end functions.
In addition to security and fraud prevention, Fundopolis
said blockchain will provide greater transparency to investors and companies
alike, enabling them to gain access to timely, accurate information such as when
and how investors will receive their perks or pay-out following a completed