Problem
Mainshares is an investment platform that helps acquisition entrepreneurs raise capital for small and mid-sized business (SMB) acquisitions and enables investors to access cash- flowing small business investment opportunities. Mainshares facilitates capital-raising opportunities under 506(c), which requires all investors to verify their accreditation before making their first investment. However, friction in the onboarding process created challenges, particularly for new investors or those using complex structures like multi-member LLCs. Mainshares sought a reliable solution to meet complex financial regulatory requirements without compromising efficiency or investor satisfaction.
Solution
To address these challenges, Mainshares selected iCapital (then Parallel Market) for their identity and accreditation verification processes. iCapital’s flexible integration options, including bridge sites, overlays, and APIs, were seamlessly embedded into the Mainshares platform, creating a frictionless user journey. Mainshares also leveraged the iCapital Investor Passport, a portable identity for accredited investors that can be used across platforms. By creating a portable identity, new Mainshares investors could bypass the accreditation and identity verification process, reducing redundancy and improving the investor experience. Together, iCapital enabled Mainshares to streamline the investor onboarding process, automate investor communications, and satisfy all financial regulatory requirements while maintaining a lean onboarding team that would otherwise demand extensive internal resources.
“KYC and AML is normally the last thing investors and issuers want to think about. [iCapital] does about as good a job as you can do in making it an intuitive, streamlined process. We went through the math of building our own solution or using some of the ‘old-school’ compliance tech companies, and nothing came close to the offering of [iCapital].”
— William Fry, Founder & CEO
Results
Partnering with iCapital has significantly improved the Mainshares investor experience and operational efficiency, ensuring compliance with their 506(c) offering. Automated accreditation and compliance processes have increased investor confidence by providing reliable verification, reducing onboarding friction, and enhancing trust. iCapital’s automation has also allowed Mainshares to avoid building a specialized internal team, reducing costs and enabling the onboarding team to focus on the investor experience. With most applications processed in under an hour, onboarding delays have been minimized. Investors and issuers have responded positively to the streamlined experience, appreciating the enhanced user experience. By integrating iCapital, Mainshares has delivered a compliant, efficient investor onboarding process that aligns with its goal of making SMB acquisitions accessible and sets the stage for scalable growth.
IMPORTANT INFORMATION
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2025 Institutional Capital Network, Inc. All Rights Reserved.
