The company is also noted for its unusual crowdfunding approach which requires investment seekers to undergo screening by FINRA-licensed Broker-Dealers before they can access potential funding.
The Confidentcrowd site requires entrepreneurs to posting a listing of their opportunity and to be screened by a FINRA-member broker-dealer before a funding offering can occur.
[1] The company's founder cites this process as a means to mitigate risk by “evaluating and structuring’ investments before offering.
[4] Signed on April 5, 2012, the JOBS Act has been identified as one of the most influential changes to US securities law since the 1930s[5] and is reported as having the potential to dramatically reshape the financing landscape of American business.
[6] One of the JOBS Act's widely reported provisions is that it exempts crowdfunding from many of the SEC regulations that restrict the raising of capital through private equity exchange.