Med-Tech Startup Beta Bionics First to Raise $1M “CrowdFunding” Round
NewsCenter.io has previously reported that the U.S. Securities and Exchange Commission (SEC) issued a new regulation in May, 2016, under Title III of the JOBS Act, allowing private companies to raise up to $1 million per year from both accredited and unaccredited investors.
Beta Bionics, a wearable device that automatically manages the blood sugar of diabetic patients, became the first startup to raise $1 million under this new rule. The company raised the money using Wefunder, a crowdfunding platform that connects investors with startups.
Wefunder, founded in 2012 by Nick Tommarello, Mike Norman, and Greg Belote, was incubated and launched by Y Combinator, among the most prominent accelerators in Silicon Valley. Thanks to the Title III regulation, the barrier to entry to become an individual investor on Wefunder was considerably lowered, allowing more people to invest in early-stage startups hey are passionate about.