A startup crowdfunding entity launched in 2018 by the St. Louis Economic Development Partnership has suspended operations.
The crowdfunding portal, Nvsted (pronounced “invested”), announced its decision in an email Thursday, saying its leadership has chosen to “pause” operations and that its fundraising platform “will no longer be publicly accessible” by the end July.
“As the market shifted and slowed down during the pandemic, we began evaluating the platform to determine how it fit into the start-up marketplace. As a result, we are taking a pause and consulting with market experts to identify a path forward to ensure we are best meeting the needs of the innovation community,” the St. Louis Economic Development Partnership said in a statement provided to St. Louis Inno.
The St. Louis Business Journal reported in 2018 that the St. Louis Economic Development Partnership made an investment of about $800,000 to create Nvsted. Its fundraising platform allowed businesses located in, or that employ workers in, the St. Louis region to crowdfund capital from any accredited and non-accredited investor. Through the platform, Nvsted received a percentage fee from every successful funding campaign. Startups that used the platform to raise capital from investors included agtech firm Pluton Biosciences and non-alcoholic craft beer maker Wellbeing Brewing Co.
With its decision to suspend operations, Nvsted said in its email Thursday that companies and investors that have used the platform should access their accounts by July 15 to save any records they have on the platform.
