Tagged: perspective

The Interrelationship Between Failure, Fraud and Execution

Regulating Risk

Anyone who has been reading my articles over the years knows that I have been on a fervent mission to help develop a practicable framework for unaccredited investor crowdfinancing. One of the reasons for my vehemence is that I am a staunch advocate of “investing freedom”. It is my belief that individuals – irrespective of… Read More

“Is it a Crowd? Is it a Herd? Is it a Problem?” How Informed Startup (Crowd) Investors Really Are.

Herd Mentality or Crowd Wisdom

Welcome to the Jungle New York City, 1968. Busy street. A group of people have stopped on the sidewalk to look up at a window on the 6th floor of the adjacent office building. No one is in plain sight. No one is trying to make a jump. Nothing. A crowd is forming on the… Read More

Niederer: Unaccredited Equity Crowdfunding Needs to Have Light Touch Investor Regulation to be Successful

Cost of Excessive Regulations

Paul Niederer is not one to mince words. Having been around the block more than once, Niederer gives good advice.  When it comes to new forms of finance he speaks from experience, not just unhindered opinion.  The Australian Small Scale Offerings Board (ASSOB), a company that Niederer runs, has been in operation since “back in… Read More

The Funding Cap on Title III Retail Crowdfunding is Pointless. 

protect us from fraud not ourselves

As we start the beginning of 2015, expectations are increasing that final rules for both Title IV and Title III crowdfunding will finally be released to the public with the first offers commencing later in 2015.  Yes there are many questions regarding the final rules from industry participants and observers. Some commentators expect that Congress… Read More

Crowd Investors Corner: Size Matters

Big Size width

According to a recently released white paper by Offerboard – a leading online marketplace for private placements – as a result of the implementation of Title II of the JOBS Act, the number of Reg D investors increased 50% over historical averages during the past year. As a growing number of retail investors allocate their… Read More

Commissioner Gallagher: Are the US Capital Markets Competitive?

SEC Commissioners Should Finalize Regulation A

    Though time has seemingly stood still on JOBS Act rulemaking at the SEC nearly one thousand days after its passage, the world continues to complete a full rotation every 24 hours – and it seems that the rest of the world is passing the U.S. by, at least when it comes to the… Read More

For Most Firms, Old-Style Banking Isn’t Coming Back

Closed Bike Bicycle

Let’s start with what won’t happen in business lending. Politicians and pressure groups love to opine that we need a return to branch-based local ‘Bank Managers’, who knew each customer personally and made lending decisions on a firm handshake. However attractive this nostalgia, most small firms are not willing to pay for a personal touch… Read More

Lending Club IPO: A Watershed Moment for Peer to Peer Lending

Lending Club Successful IPO

  As far as the peer-to-peer or marketplace lending industry is concerned, 2014 ended with a bang and not a whimper as Lending Club, the leading online lender, completed its initial public offering. On December 10, 2014 the Lending Club offering went effective, and ultimately sold 66.7 million shares, raising $834 million at an almost… Read More

Paul Niederer on Crowdfunding Regulations: Regulators & Legislators Often Have No Expertise in Small Business & Startup Ecosystem

Paul Niederer Shares His Crowdfunding Wisdom

Paul Niederer, founder of the Australian Small Scale Offerings Board (ASSOB) and crowdfunding protagonist, has tackled the global regulatory regimes around the world as they attempt to create rules for the new forms of finance. Niederer criticizes most approaches stating: “The [regulatory] implementation balance to date tends to favour investor protection which is not unusual… Read More

Every Time a Bell Rings, an Angel [Investor] Gets its Wings: The SEC meets It’s a Wonderful Life

Seasons Greetings SEC Wonderful Life

With reports that the final rule-making dates for Titles III and IV of the JOBS Act have been pushed back once again (potentially as late as October 2015), it’s as if the Securities and Exchange Commission (SEC) dropped a giant piece of coal in our collective holiday stocking. But let’s not lose our holiday spirit… Read More

Angels of Innovation: Every Great Company Starts With an Angel or Two…

I Love Angels as Investors

The lifeblood of online investment platforms is investment.  That’s not to take anything away from the brilliant and dedicated entrepreneurs who bravely dance on the cutting edge of industry.  But let’s face it, an idea without funding will flicker and then burn out like a smoldering ember without oxygen. It’s easy to marvel at today’s… Read More

Engine’s 2014 in Review: The JOBS Act – What’s Happened & What’s Next for Startup Capital Access

Hope Featured

With overwhelming bipartisan support, the Jumpstart Our Business Startups Act—or the JOBS Act—was signed into law on April 5, 2012, and for entrepreneurs and startup investors, the bill was easily one of the most promising pieces of new legislation to come out of Congress in some time. The JOBS Act updated Securities and Exchange Commission… Read More

2015: The Ascendency of Small Business & the Middle Class in Washington, DC

Reason to Be Hopeful 2015 Washington DC

As 2014 comes to a close, this is the time of year when all good journalists look back at the year’s events, and then look forward – typically with a list of bold predictions for the year ahead.  For those of you focused on small business capital formation in our Nation’s Capital, the former task… Read More

Engine: Dear SEC, Finalize JOBS Act Rules Now

JOBS Act US Capital Christmas

Today, Engine sent a letter signed by more than 200 entrepreneurs, investors, and members of the startup community to the Securities Commission to tell the agency it’s time it fulfills its statutory obligation and finalize rules to make the JOBS Act a reality. You can find the full text of the letter below and read… Read More

Consensus Forming in Washington, DC on Accredited Investor Definition

Approved Accredited Investor Stamp

  Momentum is building towards a consensus on the highly controversial updates to the accredited investor definition (currently a person who has over $200,000 in income (or $300,000 jointly with spouse) or over $1M in net worth, excluding personal residence). Initially, there was some suggestion that these thresholds should be increased to adjust for inflation… Read More

Perspective: Profiting from the Crowdfinance Revolution

A Revolution in Finance

A financial revolution – ignited by hordes of individuals who have grown leery of conventional financial institutions, and powered by contemporary P2P and crowdfund marketplaces – has been germinating across the planet. In the same way that the Industrial Revolution redefined manufacturing and the Internet Revolution refashioned commerce, this “Crowdfinance Revolution” will transform global capital… Read More

On the Misplaced Priorities of Dodd-Frank & the SEC: A Call for a “New Deal” in Washington for America’s Small Business

Great Depression Dodd Frank Quote Sam Guzik

It could have been the kickoff of a grand political campaign – a slogan that would be proud to adorn a bumper sticker for the most ambitious of politicians – and a sound byte that would be sure to grab the next day’s headlines in the Washington, D.C. press – one that would make a… Read More

SEC Chair Mary Jo White: “Small Businesses Play a Crucial Role in the Growth of Our Nation’s Economy & the Creation of New Jobs for Americans”

SEC Commissioners Mary Jo White

The week of November 17th should be officially designated “SME Regulatory Week” due to the number of events that occurred in our nation’s Capitol over several days.  The primary draw was the SEC Government-Business Forum on Small Business Capital Formation. In contrast to past years, each SEC Commissioner made an appearance (Aguilar phoned in from… Read More

Dear Congress: Please Help Our Small Businesses

Dea Congress Please Help

My friend Dan Lear and I wrote the attached letter to Congress to try to encapsulate in one place our various public policy suggestions to help startups. What you will find in the letter are 13 very specific and detailed public policy initiatives that Congress could act on today. I know, we haven’t talked about… Read More

On SEC Proposed Regulation A+: Has Commissioner Stein Succumbed to the NASAA Kool-Aid?

Kara Stein testifying

Though SEC Commissioners Daniel M. Gallagher and Kara Stein may have travelled on the same plane on the way to the Los Angeles County Bar Association Annual Securities Regulation Conference to address a room of securities industry professionals on October 24, judging by their public remarks they were certainly not on the same page –… Read More