Calls for ‘crowdfunding’ to be regulated could be heard as early as next April when new rights for consumers come in to play. But with so many internet platforms popping up, the catch-all term can be confusing. It is used to describe a large group of people all contributing cash towards anything from charitable causes or… Read More
Read more in: Global, Opinion | Tagged caveat emptor, regulation
AngelList and FundersClub both recently requested and received “no action” relief from the SEC staff. “No action” letters are often complicated and the law surrounding the discussion is extremely opaque. We have sought to set out the implications of the relief granted by the staff at the SEC as well as a summary of the… Read More
Read more in: Politics | Tagged crowd valley, regulation, sec
Although many aspects of crowdfunding regulation are still pending federal approval, the developing social fundraising system can offer growth opportunities for startups. Crowdfunding was the main topic recently for the Western Michigan chapter of the Association for Corporate Growth at its breakfast series, at Kent Country Club in Grand Rapids. A panel consisting of Jeff Van Winkle,… Read More
Read more in: General News | Tagged crowdsourcing, regulation
… While skeptics point out there might be natural limits on how successful equity crowdfunding could be, the immediate reason for the holdup is the SEC. The JOBS Act required the commission to create the rules governing equity crowdfunding within nine months of its passage. The SEC has missed its deadline, and it is not expected… Read More
Read more in: Politics | Tagged jobs act, regulation, sec
While start-up owners eagerly await the Securities and Exchange Commission’s regulations for crowdfunding, a handful of broker/dealers are racing to be the first to capitalize on the phenomenon. An exemption in the Securities Act allows start-ups to conduct a version of crowdfunding today — as long it’s through registered broker/dealers. These intermediaries can issue securities to… Read More
Read more in: General News | Tagged broker-dealer, regulation, sec
The SEC today paved the way for a new era of venture capital investing by stating it won’t pursue enforcement action against FundersClub, whose platform lets any accredited investor fund startups in exchange for equity. Before, some thought FundersClub’s founders could face jail time for violating finance laws. FundersClub’s model could be used by others to raise… Read More
Read more in: Crowdfunding Portals | Tagged fundersclub, regulation, sec
As we approach the dawn of equity crowdfunding in the US, one of the challenges portals will eventually face has to do with educating their entrepreneurs about how to stay on the right side of the SEC. Specifically, I want to talk about the difference between General Solicitation and Investment Advice. In the fast-moving and sometimes impulsive world… Read More
Read more in: Featured Headlines, Strategy | Tagged broker-dealer, general solicitation, investment advice, regulation, sec, social media, twitter
Two weeks ago I was sitting in on a web chat held by the United States State Department. The subject was crowdfunding. Jessica Jackley of popular microloan platform Kiva and Sherwood “Woodie” Neiss of the Startup Exemption and Crowdfund Capital Advisors were discussing crowdfunding in a global context. During the hour-long Q&A, Woodie referred to… Read More
Read more in: Featured Headlines, Opinion | Tagged crowdfund capital advisors, regulation, sec, sherwood neiss, startup exemption
Crowdfunding has come to the rescue for hundreds of thousands of startups looking for capital in a tight credit market. Soon, a new dimension to online fundraising, known as equity crowdfunding, will be available to investors, and that has regulators and consumer advocates on edge. Regulations to be released by the Securities and Exchange Commission (SEC) sometime this year… Read More
Read more in: General News | Tagged fraud, regulation, sec
According to sources in the crowdfunding industry who were present for yesterday’s meetings in Washington, there is reason for cautious optimism in regards to Title III implementation. The message from the industry was clear; We’ve examined the problem domain and we’re ready to go, but we need this important piece of legislation to go into… Read More
Read more in: Featured Headlines, Politics | Tagged candace klein, cfira, cfpa, elisse walter, jobs act, judy robinett, kim wales, mary jo white, regulation, ryan feit, sec, seedinvest, washington
At the end of a long trip last week, I took a taxi from a BART mass transit station in San Francisco’s East Bay back to my house a few miles away. As the law requires, I could only choose the first cab in line at the taxi stand, which was filthy. The driver begrudgingly popped… Read More
Read more in: General News | Tagged regulation
RocketHub’s Crowdfunding Whitepaper may prove a little tedious for the typical entrepreneur, but if you’re looking for a deep understanding of crowdfunding’s status in the US it is required reading. COO Jed Cohen and CFO Alon Hillel-Tuch were armed with their enthusiasm and this document at the recent SEC Forum on Small Business Capital Formation. I’m… Read More
Read more in: Featured Headlines, Politics | Tagged alon hillel-tuch, jed cohen, regulation, rockethub, sec, whitepaper
The 2012 Forum on Small Business Capital Formation is in the books. Industry leaders met with representatives from the SEC in an effort to build consensus on regulatory recommendations for crowdfunding’s implementation in the US. Although the movement has come a long way, there is still a lot of work to do. It is becoming… Read More
Read more in: Featured Headlines, Politics | Tagged bad actors, capital formation, finra, jobs act, regulation, sec, small business, washington dc
The Securities and Exchange Commission hosted its annual Small Business Capital Formation forum last Thursday. Crowdfunding under Title II and Title III of the JOBS Act was top of mind. We were hoping for a substantive update – the SEC is well beyond congressionally mandated deadlines for promulgating Title II rules – but Chairman, Mary… Read More
Read more in: General News | Tagged jobs act, regulation, sec
Does it make any sense for companies like Pebble or Ouya to crowdfund for equity? In hindsight, no. There is no million-dollar limit in rewards-based crowdfunding. One of the provisions of the JOBS act limits offerings to one million dollars of equity. Ouya raised over $8 million on Kickstarter. Pebble raised over $10 million…. Read More
Read more in: Featured Headlines, Offerings | Tagged equity, indiegogo, kickstarter, ouya, pebble, regulation, rewards
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