Tagged: perspective

Crowdfunding Costs Are Too High. Tell the SEC Today!

$50 Grant

Since the proposed crowdfunding rules were released on October 23, 2013, the top concern for many in the industry has been that the costs of compliance would make crowdfunding too expensive to be useful. Our Crowdfunding Cost Model further backed up this concern, indicating that offerings under approximately $115,000 would actually result in negative cash… Read More

Views on Title III “Crowdfunding”, SEC Regulations: Kim Wales

Kim Wales founder of Wales Capital

Entrepreneur and crowdfunding industry thought leader Kim Wales has outlined her views on Title III  of the Jumpstart Our Business Startups Act of 2102 which covers “popular” crowdfunding (sometimes called Reg CF).  The comment period for the SEC on the proposed regulations are scheduled to end next month on February 3, 2014. “As with the current proposed final rules… Read More

Time to Show a Red Flag to the Financial Conduct Authority

Stop Financial Conduct Authority

Green Light the new freedoms of the digital age. The idea of a man having to walk in front of each car on the road waving a red flag to ensure that they didn’t scare the horses has often been the object of a mixture of amusement and incredulity. Yet it actually happened and was… Read More

WSJ: “Who’s Suitable for Equity Crowdfunding?”

$1000 in $100 Bills

On WSJ.com under The Accelerators, the pose the question: Should average Joes and Janes be allowed to buy shares in private companies through online investment platforms known as crowdfunding sites? Or should this be restricted to only wealthy, “accredited” investors?  What are the advantages and disadvantages for startups and investors? This question is frequently discussed and debated… Read More

Equity platform RockThePost Expects to be Well Positioned to Accommodate New Regulations

Alejandro Cremades RockThePost Founder

RockThePost CEO Alejandro Cremades contacted Crowdfund Insider with some thoughts on SEC proposed regulations which were released yesterday.  RockThePost is an equity crowdfunding portal which is not presently associated with a Broker / Dealer.  The platform has raised over $17 Million in accredited investor offerings since their launch.  They hope to move into the retail… Read More

BloomVC Founder Amanda Boyle Comments on FCA Consultation Paper on Crowdfunding

Amanda Boyle

Amanda Boyle created BloomVC (Venture Capitalist) in 2011 to fill a funding gap for innovative ideas, community initiatives, and small business growth with the power of the crowd.  Located in the UK, Bloom is a rewards based crowdfunding platform. With the release of the FCA Consultation Paper released today, BloomVC founder Amanda Boyle shared some of her thoughts on the release… Read More

Kickstarter; “We Were Wrong”

kickstarter

In a rare occurrence of public culpability, Kickstarter posted a letter to everyone regarding the Kickstarter campaign for a Seduction Guide – which was fully funded but has since been pulled from the site.  The Kicktarter “mea culpa” is reproduced in it’s entirety below.  They also announced a donation in the amount of $25,000 to… Read More

Opinion: Here We Go Again, Another Round of Crowdfunding Fearmongering

Steve Ratner (Wikipedia)

In an opinion piece on the pages of NYTimes, journalist / banker and former Obama Administration “Car Czar” attacks legislation promoted by his former boss:  The Jobs Act of 2012.  Titled a “Sneaky Way to Deregulation, Ratner goes directly after one of the most significant parts of the legislation – crowdfunding.  To quote; Most troublesome… Read More

Opinion: Equity Crowdfunding Must Happen Soon

SEC Enforcement Actions

It used to be that stock transactions were a laborious task.  Phone calls were made, account verifications were processed, confirmations were mailed and summarily filed away.  The advent of internet based stock trading was a natural and exciting evolution of  investing in equities.  No longer would an investor be put on hold waiting to speak… Read More

Crowdfunding Needs Flexibility to Reach Full Potential

Wanted Entrepreneurs of All Kinds

Recently a superlative document was published by the Milken Institute which reflected upon the current state of crowdfunding domestically within the United States but also drawing on parallels abroad.  This missive was authored  by Messrs.  Chris Brummer, a law professor at Georgetown University and Daniel Gorfine, the director of special projects at Milken and their legal… Read More

Investment Banks: Gatekeepers No More

United States Treasury (Wikipedia)

Investment Bankers have traditionally been the gatekeepers of access to the capital markets.  It is time for Crowdfunding to play a greater role. The caliber of underwriting firm is often an indication of the quality of the issuing company. The investment banks are paid well for that implicit endorsement, but that puts their reputations on… Read More

Entrepreneurs will never rely on the government

Excellent point from  Andrew Yang Publishing in Business Insider.  Even with the advent of Crowdfunding, among other  funding avenues, starting a business is really tough.  Continuing the thought Mr. Yang posits that entrepreneurs will never rely on the government.  We wholeheartedly agree. Making things more difficult is that, unless a company has already reached a… Read More

Prepare to Disrupt: Why Innovation in Capital Allocation via Crowdfunding is Needed.

Greek Debt & European Average - Eurostat (Wikipedia)

This is a common theme of discussion at CrowdfundInsider.  The forthcoming launch of Crowdfunding scheduled for 2013 and how exactly this will impact the funding of Entrepreneurs and Economic growth.  This movement without a doubt has the potential to disrupt traditional forms of finance for small firms and start ups. But let’s step back a… Read More