Crowdfunding Site Makes it Easier For Startups to Stand Out SeedInvest aims to make it easier for startups to stand out from the crowd and give accredited investors the highest caliber of companies from which to choose.

Ryan Feit and James Han wanted their crowdfunding site to be more than a listing service for startups in search of cash. So when the former investors launched New York City-based SeedInvest in February, they handpicked the companies they wanted to include. The idea was to make it easier for startups to stand out from the crowd and give accredited investors the highest caliber of companies from which to choose.

So far more than 400 startups have applied to SeedInvest, and more than 600 accredited investors have signed on. "Right now about 1.5 percent of the companies that apply are given the green light to raise capital," Feit says. The site has already yielded nearly $1 million in equity or convertible-note investments. In addition to companies actively fundraising, SeedInvest features "prospects"--select up-and-comers showcased to gauge investor interest.

Once cleared to begin fundraising, startups must specify a target amount and deadline; to collect the funds, they must meet both. SeedInvest takes a 5 to 10 percent cut of funds raised through the site.