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Our Trustmark. Your Trust.
Our Trustmark. Your Trust
Our mission is to drive trust through transparency for investors and companies seeking early stage investment.
We do this by delivering comprehensive, unbiased, and easy to understand Verifications and Diligence Reports on companies seeking investment and the investors that fund them.
Companies benefit from compliance and by establishing transparency, investors gain unprecedented visibility, and partner markets are facilitated.
Driving Trust Through Transparency
The Idea Behind EarlyIQ
We started EarlyIQ in 2012 with a really simple question. As early stage investors (crowdfunders actually), how do we know what we're investing in? When we don't personally know the company raising funds, do we rely on the thoughts of other people who we also don't know? How do we research - what's our "due diligence"? That simple question raised even more questions. How does anyone, any group, or any company know in early stage, high growth companies? How can we learn about the company, the investment opportunity, and ultimately most importantly the team that's responsible making the company a success?
We asked people who invest a lot how they get comfortable with their investment decisions. We asked what was important for them to know, and how they ultimately knew. And the answers were pretty scary. Sure, everyone had a "way". Individuals talked with friends. Maybe they joined groups and shared information. And investment companies - well they had teams of people doing various levels of diligence. No one really had a great, efficient, or consistent way to get visibility into the early stage investments they were making. So we decided to fix that and EarlyIQ was born.
The intersection of offline reality and online opportunity. That's where we live. We're bringing a hosted analytics approach to what has historically been a manual, offline process. We're aggregating, deciphering, analyzing, and adding intelligence to nationwide data sources, social community information, and information self-reported by entrepreneurs. The result is unprecedented visibility and access to information that will help early stage investors make more informed investment decisions. We're not telling you who is good or bad, what investment will fly or flop, or whether one opportunity is better than another. But we're giving you tools not available anywhere else, available on-demand at a click of a mouse, that will give you insight and help support your own decision process. One of our investors summed it up - Diligence 3.0.
Helping Companies Grow
Capital. Investment. Funds. Runway. Call it what you want. Cash is the lifeblood of any company - especially for early stage and growth companies. Without access to it, well, not much happens. According to a survey of 350 prospective crowdfunding investors, those who plan to invest are over 4 times more likely to invest when the company has a report card that gives transparency into their company and management team. It's a tool that says "feel free to ask me the difficult questions, because here are the answers". And that transparency creates trust.
Accredited Investor Verification
What started as an honest question from one of our report card customers, has now become the largest part of our business. "Can you verify our investors for us?" We were providing background diligence for their startups, and they now needed to verify their investors. With the advent of Rule 506(c), the SEC was now allowing general solicitation of deals, but was also requiring "reasonable steps" be taken to verify that all investors are accredited investors. Driving trust through transparency has always been our mission, and performing checks of investors was an obvious extension of what we do to keep fraud out of the investment space.
Again, it took a couple of customers pleading with us to provide a service that we didn't currently have, to get us to build our Room 506. The simple question "While our investors are on your system to be verified, can you present them with some docs?" led us to say yes! We built a one-stop shop where investors could register, go through identity verification, be verified as accredited investors, and then view or download documents, and even electronically sign investment documents. Our partners were thrilled that they could monitor their investor pipeline, see which documents the investors had viewed, and manage their paperless document process through electronic signatures.