Investors of all stripes may now purchase shares in University of Michigan (U-M) Law School startup Court Innovations
through the equity crowdfunding platform NetCapital
Launched in 2014 with intellectual property developed at U-M, Court Innovations' Matterhorn
online case resolution platform is now in use in 20 courts across Michigan and Ohio. Matterhorn allows courts, law enforcement, and citizens to communicate about and resolve minor infractions without setting foot in court.
"It's kind of exciting to be able to extend equity investment to more people, just like we're extending the court to have more people access it," Court Innovations president M.J. Cartwright says. "It really fits our model."
That extension is made possible under the federal Jumpstart Our Business Startups Act
(JOBS Act) by way of a 4(a)(6) crowdfunding offering, with the transaction facilitated by NetCapital's Securities and Exchange Commission-authorized funding portal. The JOBS Act is meant to encourage funding for small business by easing some securities regulations. The act was passed in 2012, but provisions for companies to issue securities through crowdfunding finally took effect in May of this year.
"You don't have to necessarily be an accredited angel investor, and you can actually invest in companies that are, like ours, offering some of their common stock, and you can be involved in company investment," Cartwright says. "Which we think is very, very cool."
Founded with funding from U-M's Third Century Initiative
, Court Innovations is now looking to raise close to half a million dollars, staff up, and expand into courts in all 50 states.
Eric Gallippo is an Ypsilanti-based freelance writer.