Betaworks embraces crowdfunding with syndicate seed investment

Betaworks is pushing the boundaries of the current model by extending crowd-funding into active portfolio companies. Since the program is only open to Angels initially then it’s a pretty small crowd – but let’s hope it’s extended to mere mortals shortly.

Gigaom

Today, the U.S. government quietly lifted the general solicitation ban to make good on a provision of the JOBS Act. Now, it is legal to gain startup money from “crowdfunding” techniques — and Betaworks has announced in a blog post that it will seize the opportunity to make syndicate seed investments available for its Openbeta initiative.

Openbeta initially opened as a transparency platform — enabling users to test out new products, leave feedback, and learn about the companies that Betaworks is building even before launch. Now, Openbeta users will also be able to invest in these companies alongside Betaworks during funding periods. It’s an auspicious new feature for the startups under Betatworks’ wing, as they will be allowed to raise more add-on funding straight from the community they interact with through Openbeta.

Betaworks has confirmed that the new feature will be powered by a well-known crowdfunding process, although it…

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