SAN DIEGO, CA--(Marketwired - July 26, 2013) - Today, EarlyIQ launched a suite of hosted information and analytical services to improve transparency and mitigate the risk of fraud in private capital markets. EarlyIQ's online services can be used by private investment portals for regulatory compliance specified in the final SEC rules for Title II of the JOBS Act. Additionally, the suite serves accredited investors, investor groups, and institutions during the investment screening and diligence process. This unique solution helps platforms to uncover bad actors and provides investors with unprecedented transparency into target investment opportunities. Today's release includes the latest version of the EarlyIQ Enterprise Transparency Report which provides validated and verified information into select private investments including private placement offerings conducted under Rule 506 of Regulation D under the Securities Act of 1933. SEC information shows over $900B was raised in these private offerings during 2010, which compares to a $39B U.S. IPO market in the same time period. The reports contain EarlyIQ's industry exclusive TQScore™ which provides a metric for anticipated future transparency of the target company. Additionally, the suite contains tools used by investment portals to register, validate, and track accredited investor identity and credentials.
As early stage private investment continues its rapid movement online fueled by passage of final Rules for JOBS Act Title II, the need for efficient, cost effective tools for investors, portals, and entrepreneurs is increasing. The need to mitigate the risk of fraud in this changing investment landscape is paramount. "We've been developing our suite for over a year in anticipation of this formal and aggressive movement to the web," said Steve Yin, co-founder and CEO of EarlyIQ. "We see our role as providing the tools necessary to produce a transparent market place for all constituents."
"With the introduction of any new regulation, there is typically concern over increased administrative costs. While JOBS Act Title II final rules passed by the SEC this week do create additional regulatory requirements for certain Rule 506 private offerings, the EarlyIQ solution is an efficient and streamlined approach to mitigating the risk of bad actors in online accredited investor platforms," said Jason Best, co-founding partner in Crowdfund Capital Advisors.
EarlyIQ Enterprise Transparency Reports deliver professional level insight into companies seeking private capital while doing so in an efficient and easily understood format that makes the information accessible and meaningful to professional and non-professional investors alike. Moving far beyond simple "background checks" typically associated with due diligence, the EarlyIQ process is unique in that all parties to the investment transaction are involved in the process from beginning to end. The reports capture a thorough and verified picture into the company and management team including:
- Industry exclusive TQ Score™
- Company identity, registration, and filing compliance
- Company civil profile and records checking including liens, litigation and judgments
- Management team identity validation and positive verification
- Management team profiles including civil, criminal, and educational verification
- Patriot Act checking
The investor identity tools enable portals to confidently present an investor base to their entrepreneur constituents while facilitating compliance with SEC regulations. The tools will include:
- Investor identity validation and positive verification
- Self certification of accreditation
- Secured repository for accreditation credentials
- Optional bad actor screening
- Real-time credential currency validation
Version 2 of the Enterprise Transparency Report is commercially available today and the investor identity tools are scheduled for commercial release in Q3.
Early IQ, Inc is a San Diego, California based, hosted information and analytics company serving early stage capital markets including the crowdfunding, peer lending, angel, accredited, private equity, and venture capital. Our core technology -- Diligence 3.0 -- revolutionizes transparency for early stage decision support. As the #1 source for investors and industry-standard trustmark for ratings, research, and analysis on private start-up ventures, we facilitate efficient markets by providing information and services for online investment portals and other professional investment markets.