One of the most common conversations surrounding equity crowdfunding is the information available to investors on start-ups and small businesses that will be seeking capital utilizing Title III crowdfunding. In any investment opportunity, nothing can replace an individual investor doing their own due diligence. Not researching the financials, management team and competitive landscape prior to committing your hard earned capital is a recipe for disaster. It is incumbent upon any investor to research, review and research some more prior to investing. This is the case with crowdfunded securities, stock, corporate bonds or any other investment. The challenge with investing in crowdfunded securities is the minimal amount of information that may be available prior to making such an important decision.

For over 30 years, Zacks Investment Research (Zacks.com) has provided research on publicly traded companies. They are currently the second largest independent research company following public issues. What if that same level of research analyst was available for a crowdfunded security? We came across a landing page that appears to be the case. Zacks Investment Research has created a team of experienced small business and start-up analysts that are tasked with researching and writing reports on businesses raising funds through Title III crowdfunding.

If a case is to be made that crowdfunded securities are being accepted by the Wall Street establishment, this in our eyes would be just that. Although never a replacement for an individual doing their own research, it would certainly be a tool in the tool box of that individual crowdfund securities investor.
Zacks Crowdfunded Securities Research is now seeking companies planning on participating in a capital raise through Title III crowdfunding to apply for a free research report on their company. As stated on their just released landing page, Zacks is offering free research to the first 5 companies accepted by the new research team to receive a free research report.
These reports will be available to be posted on the equity crowdfunding portal chosen by the issuer. Offering potential investors an independent opinion of the security being offered.

Again, this will never replace an individual doing their own research but it would seem to be quite advantageous for a start-up to publish an independent research report for investor viewing. We believe these reports will include a version of the well known Zacks 5 star rating system.

As a reader of our site, you are likely aware that Title III equity crowdfunding is still a few months away from being legal in the United States (As of Feb. 2014) but we are getting close.

If you are a small business owner or start-up considering a Title III crowdfunded raise we suggest you reach out to Zacks Crowdfunded Securities Research and contact them. You may just be one initial 5 research reports chosen by Zacks to be written free of charge (including an update when you choose a portal and begin your raise).

There is also a revenue opportunity for Title III crowdfunding platform owners to offer Zacks Crowdfunded Research Reports to issuers on their site. Platform owners are encouraged to reach out through the site and inquire about offering this service to issuers on their site.