North Capital Investment Technology (NCIT)

wealthtech (retail)other investments platformregtech

FOUNDING YEAR: 2014
LOCATION: United States
Last Update: 01/05/2020

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About

North Capital Investment Technology (NCIT) offers software as a service (SAAS) and RegTech solutions to enable the offering, transaction, clearing, and custody of exempt securities. Through its TransactCloud platform and its wholly-owned, registered broker-dealer, NCIT provides the technical infrastructure and facilitates regulatory compliance for registered broker-dealers, funding platforms, and issuers to transact private and other exempt securities.

MEDICI Analysis

North Capital Private Securities Corporation operates as a broker-dealer. It focuses on marketing and distribution of private funds and the securities of private companies to qualified investors, such as family offices, funds of funds, endowments, foundations, and pension funds.

Focus

PRODUCTS & SERVICES

Marketplace Solutions: North Capital offers technology-based investment solutions to broker-dealers, banks, fund managers, funding platforms, and private issuers who want to access private investment markets. Its flagship product TransactAPI can be quickly and easily be integrated with proprietary platforms, or Marketplace-as-a-Service. The TransactAPI technology stack is integrated to accept ACH and Wire Transfers; Marketplace-as-a-Service, referred to as ‘platform in a box,’ is a quick-to-market solution. It also offers the DirectInvest Button, a mini-platform for investors to complete the entire investment process. Prime Brokerage Services: Compliance oversight, investor qualification, and regulatory due diligence. It also provides advisory services. Other services include portfolio management, financial planning, and consulting services.

REVENUE MODEL

We charge license fees and transaction fees for our software and RegTech solutions, which allows us to participate in and capitalize upon the success of our customers.

MAIN CLIENTS

Broker

dealers

Banks

Fund managers

PRIMARY PROBLEM SOLVED

We provide software and RegTech services to facilitate the offering and transaction of exempt offerings, saving our customers time and money, while expanding access to capital and automating regulatory compliance.

INTELLECTUAL PROPERTY

Patent(s) NOT_FILED

Traction

REVENUE

$5.0M - $9.99M

REVENUE COMMENT:

All of our customers are paying customers; our customer base is moving up-market to more established financial firms. Our model allows for significant operating leverage.

ACTIVE USERS:

73 customers, 27,000 investor transactions.

ACTIVE USERS COMMENT:

We are continuing to add new capabilities to our API stack to drive volume and expand margins through new applications of our technology.

People

FOUNDERS

Jim Dowd

NUMBER OF EMPLOYEES

11-50

INVESTORS:

Green Visor Capital

Jones Family Office

Karlani Capital

KEY EMPLOYEES:

Stephanie Holt

Sara Borazan

COMMENT:

We have a highly experienced,skilled team of tech,financial professionals whose members are uniquely focused on improving private securities markets through the development,application of technology. Our developers have deep experience in our market, dating back to the development of our first private fund platform, for Bear Stearns, in 2004.

Momentum

FUNDED

YES

TOTAL FUNDING

$1 M

DATE OF LAST FUNDING

Dec 2014

SEED & PRIOR FUNDING

$1 M

SEED CLOSED ON

Dec 2014

LISTED

NO

For Investors

FUNDING NEEDED:

$10 M

USES OF FUNDS RAISED:

1. Sales

2. Addt'l Compliance Resource

3. Legal work on custody and secondary markets.

4. Security testing

EXIT STRATEGY

Purchase, Reg A mini IPO

MONTHS LEFT WITH CURRENT CASH BURN RATE:

999 months from 16 Sep, 2017

COMPETITORS:

Growth Capital Services

BASICS

FOUNDING YEAR:

2014

LOCATION:

United States

Views:

714 VISITORS | 2295 VIEWS
LATEST FUNDING ROUND

$1 M

TOTAL EMPLOYEES
11-50

About

North Capital Investment Technology (NCIT) offers software as a service (SAAS) and RegTech solutions to enable the offering, transaction, clearing, and custody of exempt securities. Through its TransactCloud platform and its wholly-owned, registered broker-dealer, NCIT provides the technical infrastructure and facilitates regulatory compliance for registered broker-dealers, funding platforms, and issuers to transact private and other exempt securities.

Subscribe to the MEDICI Inner Circle Membership and gain access to an exclusive Slack community where you can engage in discussions with global industry experts!

MEDICI Analysis

North Capital Private Securities Corporation operates as a broker-dealer. It focuses on marketing and distribution of private funds and the securities of private companies to qualified investors, such as family offices, funds of funds, endowments, foundations, and pension funds.

Focus+
Momentum+
Traction+
People+
For Investors+
Other+

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North Capital Investment Technology (NCIT)

About

North Capital Investment Technology (NCIT) offers software as a service (SAAS) and RegTech solutions to enable the offering, transaction, clearing, and custody of exempt securities. Through its TransactCloud platform and its wholly-owned, registered broker-dealer, NCIT provides the technical infrastructure and facilitates regulatory compliance for registered broker-dealers, funding platforms, and issuers to transact private and other exempt securities.

Focus

PRODUCTS & SERVICES

TransactCloud streamlines the offering, transaction, settlement, and post-transaction processing of exempt securities offerings in a secure, compliant environment. Our standards-based API toolkit can be quickly and easily integrated with proprietary platforms, saving development time and money. Issuers and financial intermediaries benefit from TAPI’s straight through processing of private placement transactions, which enables higher transaction volumes, expands access to new investors, and reduces processing times. Marketplace as a Service and the Direct Invest Button are both front end SaaS offerings that employ TAPI.

REVENUE MODEL

We charge license fees and transaction fees for our software and RegTech solutions, which allows us to participate in and capitalize upon the success of our customers.

TOP PROBLEM SOLVED

We provide software and RegTech services to facilitate the offering and transaction of exempt offerings, saving our customers time and money, while expanding access to capital and automating regulatory compliance.

PRODUCT DEVELOPMENT STAGE

V2.0 or BEYOND

PRODUCT DEVELOPMENT COMMENT

In addition to the API stack, we offer a platform solution for financial intermediaries (broker dealers, funding platforms, serial issuers) and a single issuer solution for one-off issuers of exempt securities.

KEY DIFFERENTIATORS

Deep knowledge of U.S. securities law compliance; market leader in the space; 14 years of experience with private securities funding platforms, beginning with Bear Stearns. Our API serves a wide range of use cases for intermediaries who seek to automate their private securities fundraising process.

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

Enterprise - Others

Small and Medium Business - Online Retail

Small And Medium Business - Other

PRODUCT ATTRIBUTES

SaaS

White label

Back Office

Customer facing

STRATEGIC CLIENTS AND PARTNERSHIP

Kingdom Trust Company : Technology customer

LendingClub : Technology customer for SMAs

RealtyMogul : RegTech customer

RealtyShares : RegTech customer

Argon : RegTech customer

People

FOUNDERS

Jim Dowd

NUMBER OF EMPLOYEES

11-50

KEY EMPLOYEES:

CEO: James Dowd

CTO: Anton Prakash

CFO: Stephanie Holt

Director-Principal / Platforms: Sara Borazan

FOUNDER: Jim Dowd

TEAM COMMENT:

We have a highly experienced,skilled team of tech,financial professionals whose members are uniquely focused on improving private securities markets through the development,application of technology. Our developers have deep experience in our market, dating back to the development of our first private fund platform, for Bear Stearns, in 2004.

INVESTORS:

Green Visor Capital

Jones Family Office

Karlani Capital

Momentum

FUNDED

NO

TOTAL FUNDING:

$1 M

LISTED

NO

FUNDING SERIES
Seed Jun 2014 --- USD1 M at a USD3 Mvaluation Comment on Seed Closed very fast with friends and family investors. Personal investors left off.

Comment on Valuation

Resulted from conversion. Investors were offered generous conversion terms if we delayed the next round of financing, which never took place. Green Visor Capital Karlani Capital