Tagged: perspective

When It Comes to Retail Crowdfunding, SAFEty First

Caution Danger Beware

A Reply on the Use of SAFEs in Crowdfunding On September 22nd, Crowdfund Insider published a post summarizing the arguments presented in our new essay entitled “Crowdfunding and the Not-So-Safe SAFE“ (forthcoming in Virginia Law Review Online). Our essay raises a number of concerns about… Read More

Bruce Davis, MD of Abundance, Shares Insight & Perspective on FCA Regulatory Review


Bruce Davis is a founder and Joint Managing Director at Abundance, a peer to peer investing platform focused on renewable energy projects. He is also part of the original team that launched Zopa – the very first peer to peer lending platform to set up… Read More

A Pretty Insane Internal Rate of Return for AngelList Investors

Investigation Search Money Inquiry

Investing in early stage companies is a risky venture. The advent of internet finance has made it easier than ever before to gain access to purchasing securities in startups.  The debate regarding risk versus return has always been a very hot topic. Recently Crowdfund Insider… Read More

Massive Rule 147 Amendments May Be On The Horizon Impacting Intrastate Crowdfunding


Almost a year ago, the SEC proposed certain amendments to the current Rule 147 which were intended to help foster, and increase the viability of, Intrastate crowdfunding. While little has been heard about these amendments since their release (except from Intrastate proponents like me of… Read More

Title III Crowdfunding Might Not Be What Many Expected


I have been immersed in the equity crowdfunding industry since late 2015 and have tried to collect as many different perspectives on the industry from as many experts as possible. And while it is hard to predict the ultimate fate of an industry that had… Read More

FINRA Allegedly Warns Off Reg CF Portals on Use of Trusts for Escrow

halt stop hand

FINRA is a non-governmental entity that acts as a financial regulator over a wide swath of the financial industry.  Their mission is to detect and prevent wrongdoing in the US financial markets. FINRA also has enforcement powers. Last year alone they rendered over 1500 disciplinary… Read More

On Investment Crowdfunding, Diversification & the Wisdom of the Crowd


Still Time to Fix the Fix Crowdfunding Act One of the cardinal rules of investing is  diversification – a critical ingredient for long-term portfolio growth.  This rule applies with equal, if not greater, force when investing in “Title III Regulation CF Crowdfunding” securities – open… Read More

Video: Christian Catalini Says Title III Crowdfunding Not Likely to Generate the Next Uber


Christian Catalini, a Professor at MIT Sloan School of Managment and one of the leading academics in the crowdfunding sector, recently published a new video sharing his views on the emerging investment crowdfunding sector. Catalini has long followed both the rewards iteration and accredited crowdfunding under… Read More

Marketplace Lending: The Challenge of Keeping It Simple And Transparent


LendIt Europe gathered over 900 attendees from 50 countries on the banks of the Thames river to network and hear about the latest trends in online direct lending. The tone of the conference was clearly set by the UK keynote speakers. The UK being 4… Read More

How to Fix the Fix Crowdfunding Act


Let me begin by saying god bless Congressman Patrick McHenry. He is out there on the front lines actually trying to make a difference and help entrepreneurs and small businesses get off the ground and succeed. Of course, no good deed goes unpunished, and a… Read More

Shocker: Elizabeth Warren Tells President Obama to Demote SEC Chair Mary JoeWhite

Senator Elizabeth Warren

Senator Elizabeth Warren is rattling cages once again. This time, she is blasting SEC Chair Mary Jo White asking President Obama to fire or demote Chair White in a public letter. According to her letter, Warren states “enough is enough”, that Chair White has undermined… Read More

There are Now 17 Registered Reg CF Platforms. Can they be Sustained?


Reg CF investment crowdfunding (Title III of the JOBS Act) has only been actionable since May of this year. At the end of May, there were 10 FINRA/SEC approved Regulation CF platforms with only a handful listing live investment opportunities. The approved platforms at the… Read More

Ruth Hedges: Crowdfunding Will Be Ubiquitous


Ruth Hedges is from the early days of crowdfunding in the United States. Part of an original group of committed individuals who advocated on behalf of updating antiquated securities regulations, Hedges is a founding member of the Crowdfund Intermediary Regulatory Advocates (CFIRA); the group originally… Read More

Donald Trump Sunlight Campaign on GoFundMe Raises $25K on Day 1

Donald Trump 3

A donation-based crowdfunding campaign on GoFundMe is looking for contributions to fund a Donald Trump “Sunlight Campaign” and on day one has raised about $25,000. The campaign page, created by Aaron Holman, has been receiving a steady clip of small donations. But there are more… Read More

The Regulatory Framework for Peer-to-Peer Lending Industry in Thailand : A Consultation Paper Issued by the Bank of Thailand


The Peer-to-Peer Lending Industry in Thailand Peer-to-peer lending, which is also known as social lending or crowdlending, has drastically increased in the recent years in many countries around the world. The total volume of peer-to-peer lending activities has been growing rapidly. A good example is… Read More

Brian Korn Says CFPB on the Offensive with CashCall Action & More

Brian Korn LendTech Angels LendLab

Brian Korn, a prominent attorney in the alternative finance sector, says the Consumer Financial Protection Bureau (CFPB) is on the offensive. Korn pointed to recent settlements with LendUp and CashCall as indicative of its aggressive approach towards financial service enforcement. At the end of 2013,… Read More

When You Use a Bomb to Swat a Fly: A Response to the Proposal of Banning SAFEs in Crowdfunding


This article is a response to the draft paper referenced in the article entitled “Crowdfunding and the Not-So-Safe SAFE” authored by Joseph M. Green and John F. Coyle. There are many so words to describe my thoughts about the paper: patronizing, impractical, misguided—but mostly, unfortunate. One… Read More

Is the SAFE Not So Safe for Investment Crowdfunding?


Earlier this year, on May 16, 2016, the final portion of the JOBS Act became actionable. The much anticipated Title III provisions and Regulation Crowdfunding (Reg CF) went into effect, marking the official beginning of retail crowdfunding in the United States. While the industry is… Read More

Regulation A+ Offering: Hype or Reality?


Jobs creation and wages are in the spotlight again by voter demand this presidential election year and receiving attention from both Republican and Democratic parties. This begs the question whether an improved version of Regulation A under the JOBs Act of 2012 offers a practical… Read More