Tagged: perspective

Montana & Massachusetts Update “Fools Errand” SEC Lawsuit

Damage Dollar Money

The states of Massachusetts and Montana have filed a joint preliminary statement of issues. Once again the two state securities regulators, William Galvin in Massachusetts and Monica Lindeen in Montana, are reiterating their criticism of the SEC and recently enacted rules for Regulation A+. The… Read More

German Crowdfunding Network & Others Warn on Proposed Capital Gains Tax Increase

Angela Merkel Germany 2

The German Crowdfunding Network joined a broad coalition of business advocates last month to plead with the German government to not raise taxes on capital gains. Typically politicians are always in search of revenue (new taxes) to spend on public projects and services. Some with merit,… Read More

Regulation A+ Day 1: A Look Past the Mainstream Media Headlines

Extra Extra Title III

And Regulation A+’s Forgotten Crowdfunding Cousin Quietly Comes to Life in Congress Some History Lessons Though some may quibble over the details, June 19, 2015, was an historic day in U.S. regulatory history, at least as far as raising capital for small businesses is concerned… Read More

Regulation A+: What Do Industry Leaders Think About The New Investment Crowdfunding Exemption

The Signing of the JOBS Act Framed

Title IV of the JOBS Act finally become an actionable exemption today.  Rules 251 through 263 of Regulation A, under the Securities Act of 1933, were amended in an effort to fix a previously untenable securities rule.  Reg A+, as it is commonly known, has… Read More

SEC Advisory Committee Recommends Modernizing Rule 147 To Support Intrastate Crowdfunding

ACSEC Kara Stein and Stephen Graham

The Securities and Exchange Commission’s (SEC) Advisory Committee on Small and Emerging Companies met in early June to discuss various topics concerning, of course, small businesses. One of the primary topics the Committee addressed was the growing enactment and use of state-based crowdfunding (i.e. “Intrastate… Read More

House Committee Scheduled to Discuss Definition of An Accredited Investor

Majesty of Law Rayburn House Office Building Washington DC

The Subcommittee on Capital Markets an Government Sponsored Enterprises, part of the Committee on Financial Services, has scheduled a hearing to discuss two bills. The first is the Small Business Credit Availability Act which has been crafted to amend the Investment Committee Act of 1940… Read More

The Tech That Powers Alternative Finance

FinTech and Money

  Trends in the Use of Technology in Alternative Finance Calendar makers divide the general world’s timeline into “Common Era” and “before the Common Era”. For financial technology, the timeline should be divided into “Before PayPal” and the sea change which has happened since. When… Read More

FINRA Launches Online BrokerCheck Research Tool, But Does It Work?

BrokerCheck Promos

Early last week the Financial Industry Regulatory Authority (FINRA) rolled out a multi-million dollar ad campaign promoting its online research tool called “BrokerCheck.” BrokerCheck is free online database intended to provide the investing public with an east way to research brokers and investment advisers before… Read More

Warren Wrong: Senator’s Attack on Mary Jo White is Misdirected

Senator Elizabeth Warren

Senator Elizabeth Warren, an outspoken critic of all things associated with Wall Street, launched a blistering frontal assault against the current Chair of the SEC – Mary Jo White. It should be noted that Mary Jo White was selected by President Barack Obama to reinvigorate… Read More

Capital Unbound; Piwowar Suggests Regulators Need Restraining & Crowdfunding Should Look to States

Michael Piwowar quote

A CATO Institute event on the status of capital markets in the US provided a bright spot to an otherwise bleak and rainy day in New York City. Amidst the libertarian rhetoric and literature, two speakers stood out with certain observations and proposed remedies to… Read More

Regulatory Morass: A Visual Depiction of the Convoluted Financial Sector Rules (Infographic)

Cost of Excessive Regulations

SEC Commissioner Daniel Gallagher has completed the final update of his “crazy quilt” chart of regulations that smother financial services firms.  It is a wonder that anyone working in the financial sector does anything else but adhere to rules.  And these are the rules implemented… Read More

Peer to Peer Lending: Taking The Fear Out Of “Shadow Banking”

The Truth About Shadow Banking

For years now, big bank lenders have warned the public about the dangers of dealing with “shadow” (i.e. non-bank) lending institutions. The term itself conjures up images of shady back-room deals where you’re handed money in a paper bag and told to pay it back… Read More

The State of Massachusetts vs. Regulation A+: State Regulators Take the SEC to Court

William Galvin Fight Regulation A+

On the eve of the 2015 Memorial Day weekend, Massachusetts Secretary of State William Galvin set the stage for what I expect will be the final chapter in the continuing saga of what has popularly been referred to as Regulation A+,  a newly created avenue… Read More

When to Pivot, When to Fold: What Every CEO & Investor Needs to Know

Pivot or Fold Question

The thing that excites me most about today’s crowdfinance-inspired path of capital formation is its unprecedented ability to mitigate shareholder risk and groom more productive businesses. It does this by allowing companies to gauge consumer demand and presell products prior to it outlaying any manufacturing,… Read More

Aligning Entrepreneur and Crowdinvestor Interests

An Army of Investors 2

  Crowdinvesting has contributed to the development of new organizational forms that in particular affects entrepreneur – investor relations. In this new reality, it is normal for startups to have an average of 125 investors. A potential burden for small founder teams, but also a… Read More

Canada: There’s a New Way for Companies to Raise Capital from the Crowd

Canada Equity Crowdfunding

Six Canadian provinces jumped into the equity crowdfunding space in a big way on May 14, 2015. British Columbia, Saskatchewan,  Quebec, Manitoba, New Brunswick and Nova Scotia announced a new prospectus exemption for early stage companies to raise capital. When I first read the press release,… Read More

Fund Forward: 8 Exciting Trends in Crowdfunding That Are Coming Sooner Than You Think

Money Dollars Benjamin Franklinjpg

With a compound annual growth rate of 88% since 2011, crowdfunding, particularly equity crowdfunding, is taking off. The decentralization of finance gives individuals more choice and control as to where they invest their money, and simultaneously offers startups access to new sources of capital. So… Read More

It’s Official – the FinTech Revolution has arrived, according to The Economist!

Economist Fintech Revolution

Is this a defining moment? For many I suspect it will be – although to judge by the comments, some of them who clearly think that the trust that the banks squandered long ago is still in place, other who clearly see the old order… Read More

Moving On: Commissioner Daniel Gallagher Expected to Depart SEC After Four Years

Daniel Gallagher Title IV

One of the most vocal advocates for small business and rational rule making is leaving the Securities and Exchange Commission.  Daniel Gallagher, an SEC Commissioner for the past four years, has reportedly told multiple people he is ready to move on after a vocal tenure… Read More