truCrowd Sells Stake to Public Growth Accelerator
Chicago, IL, Globe Newswire
truCrowd, Inc., owner and operator of Regulation CF crowdfunding portal truCrowd.com, announced today that the Company has executed an agreement with Digital Arts Media Network, Inc. (DATI), to sell to the Public Accelerator-Incubator (PAI), an equity stake of up to 39.89% percent in the Company, in an effort to grow the SEC registered, FINRA member crowdfunding portal.
Vincent Petrescu, President of truCrowd, Inc., said, “We have strategically aligned the company with DATI in an effort to ramp up the successes we’ve had so far. We also look to properly take advantage of the surge in those blockchain related projects looking to work within the current framework of the SEC. We believe that by taking responsibility for our own social and cultural output, promoting the appropriate use of Reg. CF portals, we can both support traditional capital formation and Reg CF compliant blockchain related projects.”
DATI is a specialized tech accelerator focused primarily on expediting capital formation by providing angel and early-stage investors access to liquidity, faster. As part of DATI’s Invest+ program, the Public Accelerator-Incubator has purchased a 19.9% equity stake in truCrowd which will vest over 6 months, with an option to acquire an additional 19.99%. DATI will also provide capital formation services to the Company through its Angels+ program. The deal was made with the anticipation (by both managements) that truCrowd, being 1 of only 38 Reg. CF portals currently registered with FINRA, would be able to better leverage management’s long-standing experience in the crowdfunding space, along with the portal’s current success in meeting client’s/issuer’s capital targets, if a strategic partner could assist with financing, deal flow, business development and execution.
Mr. Petrescu concluded, “We see the StartEngine as an example of what truCrowd can accomplish as a starting point with the right strategic alliances. With 87,000 registered users and an estimated valuation of $65M dollars, StartEngine has raised roughly $35M for clients, leveraging a combination of Reg. D, Reg. A+ and Reg. CF. Through our relationship with DATI and the experience its team brings from the public markets, startup community, and venture capital markets, we are confident that we can achieve great success and build truCrowd into a prosperous enterprise.”
It is important to note, the parties to the transaction are requesting comments from truCrowd’s regulatory body prior to consummating the transaction. Accordingly, the parties may be required to eliminate or modify some of the provisions of the transaction prior to the final closing.
About truCrowd, Inc.:
Located in the heart of the financial district of downtown Chicago, truCrowd is a FINRA member equity crowdfunding portal operating under Regulation Crowdfunding (Title III of JOBS ACT); connecting startups and emerging businesses with non-accredited and accredited investors. Built on the belief that not all businesses and investors are alike, we pride ourselves on delivering a personalized and professional funding experience through industry-leading technology.
Please Visit our Corporate Website at: us.truCrowd.com
About Digital Arts Media Network, Inc.:
Digital Arts Media Network, Inc. (OTCMKTS: DATI) is the first company to utilize the Public Accelerator-Incubator (PAI) model, with the intent to follow the global success of accelerators and incubators around the world, adding niche opportunities to both the microcap and startup communities. As a PAI, Digital Arts Media Network will develop and acquire innovations that solve problems through digital platforms and other electronic applications.
For more information: globenewswire.com/truCrowd-Inc-Sells-Stake-to-Public-Accelerator
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