Launching to the public this week is Seed Equity Ventures, an equity-based crowdfunding platform and licensed US registered broker dealer. Similar but different from platforms like Kickstarter and Indiegogo which use crowdfunding to match early adopters for the backing and first issue of new products, equity crowdfunding platforms provide access for companies to raise funding for their firms through the sale of equity or debt.

Created by the former founder of IBFX, CEO Todd Crosland, Seed Equity uses a social approach to discover new investments and to become funded, as well as combine the service with its broker-dealer license. As equity crowdfunding involves the sale of securities in the company, providers of such services fall under existing financial guidelines for issuing debt and equity. In the US, investing in equity crowdfunding is limited to accredited investors and requires platforms to be registered as broker-dealers.

Although a new industry, equity crowdfunding has become somewhat of a crowded space over the past year thanks to soaring valuations of startups and a resurgence of technology IPOs, as well as shows like SharkTank which have created a new ‘cool factor’ being tagged to startups and to angel and venture investing. In addition,  Regulation  Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term around the world has been put in place in certain regions making it easier for companies to raise money using crowdfunding

Speaking to Crosland about how Seed Equity aims to distinguish itself, he explained to  Forex  Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term Magnates that their goal is for the platform to go global in connecting investors and entrepreneurs. As an example, Crosland mentioned IBFX’s social trading product, IBFX Connect, which he stated, “Connected traders from around the world." With Seed Equity they plan on using a similar model, “casting a wide net of entrepreneurs and investors from around the world."

For investors, opening the platform to a diverse range of countries provides additional sources of deal flow, beyond just local markets. Entrepreneurs are expected to benefit as Seed Equity would connect them with investors with whom they may not have been able to access being domiciled in their home countries. Upon launching with 100 investors and users already on the platform following the product’s beta period, Seed Equity has presence in the US, Australia, Brazil, China, Denmark, Egypt, Hungary, Israel, Japan, Philippines, Poland, Russian Federation, Romania, Singapore, South Korea, Honduras, Cyprus, Mongolia, Nicaragua, Turkey and United Kingdom.

Another differentiator is the platform’s social aspects. Users can follow other investors or companies learning from them. Within this format, Seed Equity provides entrepreneurs the ability to float ideas for potential startups. The idea is that upon gaining followers and ‘virtual investors’, the entrepreneur can then take the next step to use Seed Equity to initially fund their project, having the knowledge that the idea has an existing group of interested parties potentially ready to back the project. Once funded, Seed Equity provides closed groups which can be used by firms to contact their investors privately, such as to provide milestone announcements or gain feedback on ideas, leveraging the ‘wisdom of the crowd.'

Upon launching this Tuesday, the Seed Equity has its first startup using the platform to raise funding, Studio. Aiming to raise $1M on a $19M valuation, Studio is a mobile-based image design platform. The startup falls within Seed Equity’s target types of companies where it aims to provide funding for technology oriented firms.

Looking towards the future, Forex Magnates asked Crosland what his thoughts were on the arrival of an exchange driven model arriving to equity crowdfunding and whether we may see a liquid secondary market take place. On this, Crosland noted that it could come to exist in the industry, and part of Seed Equity's registration as a broker-dealer provides flexibility in the future to have the opportunity of offering new services.