As the leading market for 2,000 venture-stage companies, we spend a lot of time working with smaller issuers to solve the challenges they face accessing the benefits of the public markets. For many, having access to the cost-effective capital they need to drive growth and fuel their businesses rises to the top of their priority list.

While the goal of the JOBS Act was to create a framework to better address the needs of smaller companies and expand their access to capital, it has been slow to gain traction, and for many issuers, the process remains both cumbersome and expensive.

Against this backdrop, OTC Markets Group recently announced a strategic alliance with North Capital Investment Technology Inc. Our goal is simple – to offer our OTCQX and OTCQB companies an out-of-the-box technology solution that streamlines and automates the process for raising capital online.

Streamlined Solutions: DirectInvest Technology

North Capital’s DirectInvest Technology solution can be integrated onto the company’s quote page on otcmarkets.com, which receives millions of page views per month.

For JOBS Act offerings where general solicitation is permitted, the platform can be seamlessly integrated into the company’s corporate website, social channels and email campaigns. The technology can also be deployed in tandem with traditional offerings underwritten by investment banks.

North Capital’s technology and ancillary offerings provide issuers with an automated workflow that streamlines the investment process across a variety of JOBS ACT and other exempt offerings – including private offerings under Reg D and Reg A and Crowdfunding offerings.  For companies, the benefits include the automated handling of required investor accreditation, KYC and AML checks, as well as investor onboarding and transaction processing.  Further, issuers benefit from complete visibility over the process via a user interface that allows them to track how an offering is progressing.

Key Benefits include:

  • Technology Enabled Workflow – Streamline and automate the investment process across various offering exemptions – Reg D and Reg A offerings
  • Enhanced Distribution – Companies can leverage the DirectInvest Button via their quote page on OTCMarkets.com, which receives millions of monthly views
  • Compliant Processes – Ensure a user-friendly experience while automating compliance such as AML/KYC background checks & accreditation verification
  • Seamless Transaction Processing – Electronic subscription document signing & simplified ACH payment processing
  • Real-Time Analytics – Direct access to the data related to the offering via dedicated analytics portal

Our mission is to create better and more efficient financial markets and it is with this in mind that we continue to look for ways to promote capital formation for early-stage companies as they take what is often the first step on their journey to becoming public companies.

For more information about the North Capital solution, please contact Joe Oltmanns at joe@otcmarkets.com or 212-896-4447.