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Nextseed's next phase

Houston-based investment platform expands capabilities for local deals

Houston-based NextSeed has been approved as a broker-dealer platform, allowing for larger investments. Getty Images

NextSeed, which launched in Houston four years ago as a crowdfunding online investment platform, has expanded its services to become a broker-dealer. The platform also rolled out a new website.

Now that NextSeed Securities LLC is a SEC-registered broker-dealer, NextSeed campaigns aren't limited to the $1 million cap instated by crowdfunding rules, according to a news release. The new function also means that, rather than just debt securities (where investors are paid back based on revenue of the company), investors can also engage in equity investing (where money can be exchanged for ownership of the company).

"We previously focused only on debt securities, in part because we wanted to facilitate the right type of capital to the local small business community," says CFO Tae Mi Lee in the release. "With the launch of our broker-dealer practice, we are able to expand our services to offer both debt and equity offerings for different types of issuers and investors."

In the past, NextSeed deals have focused on local brick-and-mortar companies. However, this new capability opens doors to other types of deals.

"We have always wanted investors on the platform to have the ability to diversify their investment portfolios across multiple industries and asset classes, while providing the right investment structure for our business clients through a broader range of options," Tae Mi Lee continues. "We are excited about what this expansion means for our NextSeed community."

The broker-dealer model shifts more responsibility on NextSeed as the vehicle for trading securities, but also represents a growth in investing in Houston.

"The standards of review and compliance obligations for both issuers and investors become stricter and more comprehensive for offerings made via our broker-dealer, but we wanted to be able to offer a more extensive and flexible service to our community," says CEO and Co-Founder Youngro Lee in the release. "Since day one of our funding portal operations, we tried to adhere to certain standards above and beyond the minimal legal requirements. We're now just taking another leap forward into a new phase of NextSeed."

Since its launch in 2015, NextSeed has raised $11 million for companies on its platform. While not all in Houston, NextSeed focuses on funding its portfolio by locals who want to support nearby establishments. Here are some examples of deals made on the platform:

  • Buffalo Bayou Brewery in Houston raised $1,000,000.
  • Alkalign Studio in Menlo Park, California, raised $100,000.
  • The Native Hostel Bar & Kitchen in Austin raised $396,500.
  • Fair Isle Brewing in Seattle raised $327,800.

Earlier this year, NextSeed announced another new capability for its portfolio of companies. NextSeed Space launched to help provide local entities turnkey retail space with short-term leases. The space is located in Greenway Plaza, and the first tenant was announced as The Waffle Bus, however NextSeed moved in traditional Mexican restaurant, Tlahuac, which will reside in the food court until the end of June.

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Building Houston

 
 

A new executive hire for McCord is going to focus on bringing smart city technology to Generation Park. Rendering courtesy of McCord

A 4,200-acre master-planned development that's rising on the east side of town has created a new role within their executive suite to drive innovation and a new smart city initiative.

Houston-based real estate developer, McCord, has hired Nick Cardwell as vice president of digital innovation. In the newly created role, Cardwell will be tasked with bringing data-driven solutions, digital transformation, and other smart city innovation to Generation Park.

"Sensor technology, machine learning, and big data capabilities have exploded in the last decade and are rapidly outpacing the built world," says Ryan McCord, president of McCord, in a press release. "Bolting this digital future onto aging cities is no easy task. With Generation Park, we have a once-in-a-lifetime opportunity to start from the beginning and rapidly prove up hardware and software technology solutions, at a massive scale."

Both the size of the development — which is larger than Google's Sidewalk Labs project in Canada and Toyota's Woven City in Japan, according to the release — and location are what provides Generation Park with this opportunity for smart city technology.

"Generation Park, while being physically many times larger than most smart city projects, also benefits from being located in a more physically, socially, and economically diverse test bed of a notoriously low-regulation part of the United States — Houston, Texas," McCord continues.

As the development is currently still being worked on, McCord's current focus right now is tapping into data to drive project and design decisions.

Cardwell has a background in technology and was previously overseeing operations and engineering at Austin-based construction software company, Bractlet.

"McCord's vision for Generation Park is the future of commercial development, pushing digital innovation into the forefront and leveraging cutting-edge technologies throughout their portfolio. I am beyond thrilled to join the McCord team and help make that vision a reality," says Cardwell, in the release. "Through the use of experiences, data, and collaborations, we will accelerate learnings and, in turn, advance resources that will truly improve people's lives."

Nick Cardwell has been hired as vice president of digital innovation at McCord. Photo courtesy of McCord

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