North Capital Investment Technology has closed its seed funding round of USD1 million, attracting support from major institutional investors including JFO, Karlani Capital and Green Visor Capital.
The funding enables the San Francisco-based private placement technology company to continue technology innovation, roll out proprietary funding platforms and hire staff to support its growing broker-dealer, North Capital Private Securities Corporation (NCPS).
Green Visor Capital General Partner Michael Walsh said the private securities markets are in the early stages of a period of unprecedented change. General solicitation and crowdfunding will drive transparency and broader distribution, leading to a deeper and more liquid secondary market, he said.
"We believe the private markets of the future will look a lot more like the public markets of today," says Walsh. "North Capital is uniquely positioned to capitalise on this opportunity given the company's strong team, domain expertise and market ready technology solutions."
North Capital Investment Technology (NCIT) was founded earlier this year to "disrupt the private placement market" in the new private offerings environment created by the JOBS Act, says NCPS founder and Managing Director Jim Dowd.
NCPS, the broker-dealer for over 20 funding portals, is preparing to launch innovative proprietary platforms in several vertical markets built upon the Transact API and Accredited.AM technology, Dowd said.
The company is preparing to launch its new transaction technology to issuers and financial institutions. Its Software as a Service solution, TransactAPI, will facilitate the offering, transaction and settlement of private securities. TransactAPI is designed for seamless integration into websites to serve issuers, platforms, funds and broker-dealers so that it can expand access for investors and distribution for issuers.
NCIT also recently launched a free verification service for accredited investors, Accredited.AM.
"Investor verification is a critical new requirement under the JOBS Act," Dowd says. "Most issuers and many funding platforms are not equipped to manage the regulatory aspects of online private placements. With Accredited.AM and TransactAPI, we provide technology solutions to streamline the transaction process and facilitate regulatory compliance."
