Equity Crowdfunding Startup Fundopolis Partners with Blockchain Tech Provider AlphaPoint

Equity crowdfunding refers to online sales of private company securities to groups of investors. The model took root in the US in 2012, when platforms such as Wefunder and SeedInvest opened, making it possible for startups and small companies to tap retail money. In January 2019, US firms raised $8.9 million across equity crowdfunding platforms. Wefunder and StartEngine led the way, with Wefunder capturing $3.2 million for a 33.3% market share and StartEngine bringing in $2.8 million for 29.1%.

AlphaPoint's cloud-based system will underpin Fundopolis. Founders will issue equity through the blockchain network and manage investor communications, while the system runs automated security checks. Both investors and business owners will have access to accurate, current information showing when they will receive returns and how distributions will work once a fundraising round concludes.

"Fraud and security issues have plagued the crowdfunding space for many years and small businesses simply cannot afford to lose out on the critical funding they've raised," said Igor Telyatnikov, CEO of AlphaPoint. "By building Fundopolis' portal on AlphaPoint's powerful blockchain technology, this new crowdfunding approach will provide investors and companies alike the peace of mind that investments are secure, transparent and verifiable."

AlphaPoint, founded in 2013, has grown into a blockchain technology specialist for financial services. The company offers three main product lines. The Digital Asset Exchange Software serves as a full-stack platform for operators running crypto and digital asset exchanges, with more than 100 companies using it to date. Asset Digitalization Software lets clients tokenize real assets, from currencies to equity securities. The eOTC Trading Platform handles large institutional trades, supporting hundreds of crypto-to-crypto and crypto-to-fiat trading pairs.