--- title: Escrow for Registered Funding Portals description: Registered Funding Portals must name a qualified escrow agent for the offerings during the initial SEC and FINRA registration process. image: https://blog.northcapital.com/hubfs/Escrow%20Process%20Main%20Image%20(2).png --- - [What We Offer](https://www.northcapital.com/) - [Advisory Services](https://advisory.northcapital.com/) - [Broker Dealer Services](https://www.northcapital.com/solutions) - [Investment Technology](https://www.northcapital.com/platform-technology) - [Custody Services](https://www.northcapital.com/custody) - [Escrow Services](https://www.northcapital.com/escrow-custody) - [Investment Products](https://funds.northcapital.com/) - [About Us](https://www.northcapital.com/about-us) - [Contact Us](https://www.northcapital.com/contact) - [Open An Account](https://www.northcapital.com/contact) - [Login](https://portal.northcapital.com/home) [![North Capital](https://blog.northcapital.com/hs-fs/hubfs/raw_assets/public/NorthCapital_February_2021/images/North-Capital2.png?width=413&height=135&name=North-Capital2.png "North Capital")](https://www.northcapital.com/) ### Toggle menu MENU MENU - What We Offer - - - BROKERAGE SERVICES - [Custody](https://www.northcapital.com/custody) - [Escrow](https://www.northcapital.com/escrow-custody) - [Agency Brokerage](https://www.northcapital.com/contact) - [Advisory](https://advisory.northcapital.com/) - - INVESTMENT TECHNOLOGY - [All Technology](https://www.northcapital.com/platform-technology) - [Transact API](https://www.northcapital.com/transactapi) - [Accreditation Verification](https://www.northcapital.com/directaccreditation-button) - [Investor Onboarding](https://www.northcapital.com/directinvest-button) - [Payment Processing](https://www.northcapital.com/platform-technology) - [Schedule a Demo](https://www.northcapital.com/contact) - - OTHER PRODUCTS - [Secondary Trading](https://www.ppex.com/) - [Money Market Fund](https://funds.northcapital.com/) - [About Us](https://www.northcapital.com/about-us) - [Contact Us](https://www.northcapital.com/contact) - [Login](https://portal.northcapital.com/home) # North Capital Resource Center ![Escrow Services. Registered funding portals are required to identify a qualified third party Escrow provider. ](https://blog.northcapital.com/hubfs/Escrow%20Process%20Main%20Image%20(2).png) ## Escrow for Registered Funding Portals #### Regulation Crowdfunding requires that an escrow account be opened for every offering in an effort to protect investors. In fact, Registered Funding Portals must name a qualified escrow agent for the offerings during the initial SEC and FINRA registration process. Beyond the regulatory requirement, there are many benefits to using an escrow account when raising capital. An escrow account allows investors to submit funds that are securely held while the offering is in the process of raising capital. This allows the completion of any open due diligence items before investments are finalized, thereby increasing investor conversion rates and ensuring that all transactions are processed prior to finishing the raise. If the offering is unsuccessful or an investor wishes to back out during the fundraising process, the escrow provider promptly returns funds to investors. #### As a custodial broker-dealer, North Capital can act as an escrow facilitator for Registered Funding Portals. Our escrow services are fully integrated with our technology and payment processing services to streamline the entire investor on-boarding process. ![What is the process to set up an escrow account? 1. meet the team, 2. online access, 3. NCPS Review, 4. Escrow Agreement, 5. Account Opened](https://blog.northcapital.com/hs-fs/hubfs/Escrow%20Process%20Infographic%20(1).png?width=847&name=Escrow%20Process%20Infographic%20(1).png) #### For our escrow services, North Capital performs a high level due diligence review prior to undertaking any new agreement. Many funding portals pass through the cost of this due diligence review to the issuer, together with any other costs associated with opening the escrow account. The escrow agreement is between the escrow provider, the Registered Funding Portal, and the issuer. Funds remain in escrow until all contingencies delineated in the agreement, such as raising a certain amount of capital or meeting the KYC/AML obligations for each investor, have been satisfied. Key benefits of working with North Capital as your escrow facilitator include the white glove service we provide, real-time escrow reporting and visibility, and partnering with a company that has a long track record and depth of expertise with Regulation Crowdfunding.     [funding portal](https://blog.northcapital.com/resource-center/tag/funding-portal), [regulation crowdfunding](https://blog.northcapital.com/resource-center/tag/regulation-crowdfunding), [alternative investments](https://blog.northcapital.com/resource-center/tag/alternative-investments), [escrow services](https://blog.northcapital.com/resource-center/tag/escrow-services) 0 [Previous](https://blog.northcapital.com/resource-center/why-use-escrow-for-regulation-d) [Next](https://blog.northcapital.com/resource-center/need-an-api-for-alternative-investments) Regular Post Written by Nikki Gilbreth 14 July 2021 ### Recent Posts - [Case Study - Using North Capital’s TransactCloud Technology to Scale Business Through Reg A+ and Secondary Trading](https://blog.northcapital.com/resource-center/case-study-using-north-capitals-transactcloud-technology-to-scale-business-through-reg-a-and-secondary-trading) - [Need an API for Alternative Investments?](https://blog.northcapital.com/resource-center/need-an-api-for-alternative-investments) - [Subscription Escrow for Alternative Investments](https://blog.northcapital.com/resource-center/why-use-escrow-for-regulation-d) - [Crowdfunding Technology & Compliance](https://blog.northcapital.com/resource-center/compliant-technology-escrow-solutions) - [The Different Offering Exemptions for Alternative Investments](https://blog.northcapital.com/resource-center/which-offering-exemption-should-you-choose-to-raise-capital) ### Library - [March 2021 (1)](https://blog.northcapital.com/resource-center/archive/2021/03) - [April 2021 (1)](https://blog.northcapital.com/resource-center/archive/2021/04) - [May 2021 (1)](https://blog.northcapital.com/resource-center/archive/2021/05) - [July 2021 (1)](https://blog.northcapital.com/resource-center/archive/2021/07) - [September 2021 (1)](https://blog.northcapital.com/resource-center/archive/2021/09) - [February 2023 (1)](https://blog.northcapital.com/resource-center/archive/2023/02) See all - - Solutions - [Platform Technology](https://www.northcapital.com/platform-technology) - [Escrow Services](https://www.northcapital.com/escrow-custody) - [Custody](https://www.northcapital.com/custody) - [Secondary Trading](https://www.ppex.com/) - - Resources - [API Docs](https://transactapi.readme.io/docs) - [Help Center](https://hubs.ly/H0nTzdx0) - Company - [Careers](https://www.northcapital.com/careers) - [About Us](https://www.northcapital.com/about-us) - - Disclosures - [Terms of Use](https://app.hubspot.com/documents/4042879/view/266393479?accessId=6dbb91) - [Privacy Policy and Notice at Collection](https://app.hubspot.com/documents/4042879/view/266393459?accessId=62c8cb) - [Form CRS](https://app.hubspot.com/documents/4042879/view/266393663?accessId=7d6a1d) - [View All Disclosures](https://www.northcapital.com/disclosure-documents) **All investments involve risk, including the risk of loss of principal.** You should carefully consider your investment objectives, risks, transaction costs and other expenses before deciding to invest in futures or other investments. 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