The St. Louis Economic Development Partnership on Wednesday launched a new crowdfunding platform, Nvsted, which officials say is the first such program in the U.S. created by a regional economic development organization.
Wellbeing Brewing, a St. Louis-based producer of nonalcoholic beer, will be the first beneficiary of the platform. It’s looking to raise $200,000 in convertible notes for up to 6 percent of the company.
The concept has been in the works for more than a year. It allows companies to raise money from both accredited investors and individuals with lower net worth.
Nvsted lets companies set a minimum investment amount, and it helps investors and companies with required documentation. Nvested doesn’t take an equity stake in companies, but it charges a 5 percent fee for successful capital raises.
Made possible by the 2012 JOBS Act, which led to wholesale changes in rules around crowdfunding, Nvsted received Financial Industry Regulatory Authority approval earlier this month.
Read more: St. Louis Post-Dispatch