Tagged: perspective

Illinois Intrastate Crowdfunding Exemption: The Reasoning Behind The Bill

Crowdfunding regulatory environment philosophy

As noted in my prior post, “Draft Bill: Illinois Intrastate Crowdfunding Exemption,” an official draft of my proposed Illinois Intrastate Crowdfunding Exemption was recently finished. To my surprise, people actually read it and I have been getting a lot of questions as to why I choose to make my bill so different than those of… Read More

Small Business SEC Regulatory Reform in Washington, DC: “All in on Red” on Election Day 2014

Election Day 2104 US Capitol

The place was Washington, D.C. The occasion was the Annual Meeting of the Angel Capital Association at the Hilton Hotel in March 2014. Hundreds of attendees were gathered for lunch in the main Ballroom, the largest in the City. The lineup of luncheon speakers was impressive, including Keith Higgins, Director of the SEC Division of… Read More

Ron Suber’s Guide to Improve the Crowdfunding Industry

Ron Suber Advice for the Crowdfunding Industry

Recently I participated in the Third Annual Global Crowdfunding Convention and Bootcamp in Las Vegas and Ron Suber, President of Prosper Marketplace, a peer to peer or “marketplace lending” platform, spoke about the nine actions or initiatives that the marketplace lending industry in general and Prosper specifically undertook which led to the booming growth and… Read More

An Open Letter to Chair White: It’s time to Lead the Crowd (funding)

Mary Jo White A Time for Leadershp

  The place: Washington, D.C. – the occasion: the swearing in of a new federal agency head – one charged in part with regulating the flow of capital to small businesses.  President Obama and others listened with a hopeful ear. Her words were inspiring, especially to small businesses and budding entrepreneurs: This country was founded… Read More

Convertible Loans as a Band-Aid Solution to the Valuation Problem in Equity Crowdfunding

100 dollar bill band aid money

What’s happening: the industry wants equity It’s ironic that crowdfunding makes it possible to set up companies that otherwise never would’ve come into existence, only to ruin them later by postponing the valuation issues that any start up will have to solve sooner or later. Might the positive start of crowdfunding come to a halt… Read More

Crowdfunding Industry Advocates Respond to IAC Recommendations on Accredited Investor Definition

Accredited Investor Definition

Last week the Investor Advisory Committee met at the Securities and Exchange Commission to review and make recommendations on several issues regarding investors.  At the top of the list was the hot polemic on how an accredited investor should be defined. As it stands today an individual must earn $200,00 or more per year to… Read More

Perspective: Permanent Crowdfunding and Sustainable Growth

Indiegogo Perpetual

Indiegogo recently announced the launch of a new pilot program called Forever Funding  that will allow campaigners to raise money indefinitely, a sort of never ending crowdfunding round. If the rewards campaign closes with a successful result the platform gives the organizer the opportunity to open a second everlasting round, with the possibility of asking… Read More

Paul Niederer: Investing from the Crowd Starts with Friends and Family

Paul-Niederer asks questions

Paul Niederer and his investment crowdfunding platform, The Australian Small Scale Offerings Board (ASSOB), started doing equity crowdfunding before the term was even coined.  The entire global crowdfunding industry has looked towards Australia for their experience garnered from years of actual practice.  ASSOB has raised over $140 million for 310 businesses since their laws were… Read More

Tribune Op-Ed: Bring Equity Crowdfunding to Illinois

Chicago Tribune Opinion

As retail investment crowdfunding has stalled in regulatory limbo at the federal level, many states have moved foreword with homegrown initiatives to bring investment crowdfunding to companies operating within their state borders.  The old media maven Chicago Tribune has shown they are interested in bringing the same to their home state by advocating equity crowdfunding in… Read More

Seedrs: Equity Crowdfunding Makes Sense for Publicly Traded Companies

international money europe euros

Seedrs recently chalked up another first by offering shares of Chapel Down in an equity crowdfunding campaign on their platform.  Chapel Down is a publicly traded company listed on the ISDX growth market in the UK.  The funding closes on October 1st but stands at over £4 million today. The funding for Chapel Down is part… Read More

Harvard: Prodigy Network is Democratizing Real Estate Investment

Rodrigo Nino

Last month Harvard Business School published a case study on the real estate crowdfunding platform Prodigy Network and its founder Rodrigo Niño.  Authors Karim Lakhani, Katja Hutter and Greta Priar, reviewed the dramatic rise of Prodigy Network and the vision of Niño that “crowdfunding will disrupt the status quo of traditional equity investment in real… Read More

Equity vs. Debt Crowdfunding

ROI investment graph

There is a lot of media focus on crowdfunding, but sometimes the types of crowdfunding are not properly distinguished. You hear a lot about the Kickstarter’s and Indiegogo’s of the world and people are confusing these with actual investments in companies. To understand debt (lending) vs. equity based crowdfunding you must first know the four… Read More

KPMG: Banks Wonder if Crowdfunding is Friend or Foe

Bank of England Charter 1694

Global tax and advisory firm KPMG recently commented on the crowdfunding industry and how traditional banks are sizing up the new, innovative form of finance. As we all know the finance industry is absolutely enormous.  Crowdfunding, along with peer to peer lending, is still quite small. But those involved in the crowdfunding industry are watching… Read More

Investor Protection: Why You May Want to Reconsider Your Real Estate Crowdfunding Investment

No Guarantees in Real Estate Investing

Do you remember that scene from the movie Tommy Boy where the store manager rants about the importance of having a guarantee on the product box “calling out, I’ll never let you down, but if I do I’m gonna make things ALL better.” I can’t help but be reminded of that scene whenever I see… Read More

Release Title III: Securities Based Crowdfunding Rules – The New Investing Model

This Train is Late

Some Issues in Title III Crowdfunding Regulations Require Modification. Recently, there has been a renewed call for action on Title III (Regulation Crowdfunding) to go-live. And there are some proponents in the industry that just want the rules to go live ‘as-is’. However, the Crowdfunding Intermediary Regulatory Advocates (CFIRA), the first advocacy and lobbying trade… Read More

Perspective: Investors and Markets Could Benefit from Revising the Accredited Investor Definition

Accredited Investor Qualifcations featured

When Congress passed the JOBS Act lifting the ban on general solicitation in offerings under Rule 506 of Regulation D, it turned these so-called “private” offerings into potentially very public ones.  Since Reg D offerings involving general solicitation can only be sold to “accredited” investors, it also amplified the already central role that the accredited… Read More

John Mullins: The Trouble with VC Funding (Video)

The Customer Funded Business

Professor John Mullins, from the London Business School, authored a book entitled “The Customer Funded Business”. He recently visited the studios of CNBC to share his perspective on how some VCs can be injurious to a business. Mullins states that running a business is a full time job.  Raising capital is a full time job…. Read More

George Osborne: “I want the UK to lead the world in developing Fin Tech”

Chancellor of the Exchequer George Osborne

The United Kingdom has focused great attention and energy on encouraging an economic environment of innovation and entrepreneurial growth.  While actions always speak louder than words from a US perspective, we sometimes look with envy at what is occurring the UK and not happening in the US.  Granted not all is rosy across the Atlantic… Read More

Jeremy Rifkin: Crowdfunding is Part of Collaborative Commons Economy

Jeremy Rifkin Featured

Jeremy Rifkin, the founder of the ‘Foundation on Economic Trends’, is an economic and social theorist, advisor to sovereign nations (China, France et al) and an overall big thinker that looks to the future with the benefit of a profound knowledge of the past.  While most of us toil in our day – to –… Read More

McKinsey says ‘Business Needs More Women’: Crowdfunding Can Support This Goal

Women in Business Featured

Why do we want more women in business? Practicing gender equality is usually not the reason one starts a company. Are men making a mess of our economies and companies? Is “the men’s world” not functioning or failing in creating sustainable growth within our economies? No, not really. The vast majority of men in companies… Read More