What is a Crowdfunding Transfer Agent?

by | Sep 20, 2016 | Financial Services

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Crowdfunding is a fairly new concept and has many benefits. But what exactly is it?

What is Crowdfunding?

Crowdfunding is the practice of raising funds for start-ups or small ventures by collaborating with investors and entrepreneurs via crowdfunding websites. Some crowdfunding involves securities; meaning that investors can receive dividends or returns on their investment income.

What is a Crowdfunding Transfer Agent?

In order to be SEC compliant and stay within regulations, it is essential that all crowdfunding activities have the assistance of a crowdfunding transfer agent. This offers several advantages:

  • Professional services: Having a transfer agent will give your investors complete peace of mind as they can be assured that an independent transfer agent is managing your stock. This can greatly increase the number of investors you attract.
  • Cost Savings: Because you and the transfer agent are not giving physical stock certificates, you can save on shipping and processing fees.
  • Electronic Stock Certificates: Shareholders can easily check their positions online. You don’t have to worry about lost certificate fees and shipping associated with physical certificates.
  • Personalized service: Just because you’re raising money online doesn’t mean you’re on your own. You’ll have professional, personalized service from live representatives who are both skilled and knowledgeable.

When you work with a crowdfunding transfer agent you have peace of mind, as well as expertise and knowledge by your side. This will help you attract more investors than if you tried to do things on your own. Your transfer agent will ensure that everything gets completed according to regulatory bodies. When you partner with a company like Colonial Stock, you have experience and expertise on your side. Although Crowdfunding sites are fairly new, Colonial Stock Transfer Company, Inc. has been in business for more than 30 years. They can help you raise the funds you need, help you create a process to pay back your investors and create the company you’ve always dreamed of.

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