The platform aims to offer the opportunity for accredited investors to get involved in high quality private equity deals, which have been thoroughly vetted by a group of partnering private equity firms.
Marcus New, InvestX founder and CEO, commented:
“Private equity has long been used by institutions and ultra-high net worth individuals to add assets to their portfolios with traditionally higher returns than the public equity markets. Our goal is to democratize private equity investing – to provide every accredited investor with access to the same opportunities as the professional investor – and through InvestX, our private equity crowdfunding marketplace, there is an unprecedented opportunity to access established, high growth private companies that are already generating revenue.“
Earlier this year InvestX closed a $5.2 million seed investment round. The investors included US Global Funds, Meridian Funds, Pathfinder Asset Management, Mercury Capital, Mutual Capital Alliance and Stockhouse Publishing, along with other angel investors. This will allow the platform to continue to improve its offering and bring more private equity deals to the table. Two additional deals have already been sourced and will be available from the beginning of 2015.
Frank Holmes, U.S. Global Funds CEO and an initial investor in InvestX, added:
“The passage of the JOBS Act has created a multitude of new investment opportunities, but high invested capital requirements can still be an issue for some ground floor opportunities. I was impressed with the structure of the InvestX marketplace and thought that the streamlined process offered on the platform would be appealing to accredited investors looking to diversify their portfolio.”
InvestX sources its deals through leading private equity firms from both the US and Canada.
Only accredited investors can use the InvestX platform but they can join the platform at no cost and with no obligation to invest. The platform has a “Deal Room” that presents the details of all the companies listed on the site and a recorded road show presentation. The minimum investment size is $2,500. The terms for each deal will obviously differ but the investments offered on the platform are meant to be longer term with a lock-up period of between 3 to 10 years.