Tagged: broker-dealer

NextSeed Becomes a Broker Dealer. Looks to Expand Offerings Beyond Reg CF [u]

NextSeed, a FINRA regulated funding portal issuing securities under Reg CF, has become a broker-dealer. In an email distributed to its community, NextSeed announced the change in strategy for its investment crowdfunding platform. The announcement was joined by a site re-design and the addition of… Read More

Additional Info on Circle’s Acquisition of Poloniex Indicates Crypto Exchange will Soon Register as Broker Dealer & ATS

  Circle’s acquisition of cryptocurrency exchange Poloniex was big news today. The combination of the two platforms may create a powerful payments / money transfer / digital currency exchange with a global presence. Simultaneously, questions crocked up about Poloniex’s exchange site that is operating without… Read More

ICO Advisors: Are they Broker-Dealers or Finders?


Despite the record success of many initial coin offerings (ICOs), raising capital for ICOs is a difficult process.  It is tempting to accept help anywhere one can get it, and there is no shortage of persons and companies clamoring to “find” or refer investors in… Read More

StartEngine Update: Equity Crowdfunding Platform Now Seeking to Sell Securities in All 50 States Without A Broker-Dealer

Earlier this week, StartEngine announced it is now aiming to sell securities in all 50 states without a broker-dealer. This news comes less than a month after the equity crowdfunding platform filed with the Securities and Exchange Commission to raise up to $5 million in common equity… Read More

Minimizing Potential Litigation & Regulatory Risks for Crowdfunding Platforms

Crowdfunding regulations were enacted with the goal of providing small businesses access to capital without imposing arduous registration and disclosure burdens.[i]  In that regard, the regulations have shown significant promise. Commentators have rightfully highlighted the substantial benefits to both issuers and investors based on their… Read More

SEC Issues Cease & Desist Order To “EB-5” Investment Companies For Acting As Unregistered Broker-Dealers: This Matters to the Crowdfunding Industry

  Last week the U.S. Securities and Exchange Commission (SEC) issued  a Cease and Desist Order (the “Order” embedded below) against two related companies for acting as unregistered broker-dealers in connection with the sale of securities under the “EB-5” Investor Program (also sometimes referred to… Read More

Michigan Seeks to Create New Type of Broker Dealer

Michigan has been one of the states at the forefront of allowing intrastate investment crowdfunding to occur as Title III retail crowdfunding remains in a regulatory holding pattern.  The state has found capable champions in the legislature and within the business community making crowdfunding a… Read More

EquityNet Partners With Crowdnetic & North Private Capital Securities On Deal Network

EquityNet has announced a partnership with Dow Jones MarketWatch via Crowdnetic and North Capital Private Securities that seeks to allow issuers to “showcase their private offerings” on MarketWatch, CrowdWatch and other crowdfunding platforms. Privately-held businesses can use EquityNet’s new distribution network and patented technology to showcase… Read More

Daniel Gorfine: Crowdfunding Is Missing The Crowd

Daniel Gorfine is the Director of Financial Markets Policy at the Milken Institute. He has long been a balanced, pragmatic voice in the crowdfunding conversation, which is why his recent piece in Washington Monthly should be cause for concern. It’s important to note that the… Read More

Broker-Dealer Solution for Crowdfunding Portals cTrade Launched

CommunityLeader and Benjamin & Jerald have  jointly announced  the launch of cTrade—as an accredited and authorized broker-dealer solution for crowdfunding portals. cTrade was designed to support the online solicitation and sale of securities in today’s regulatory environment, and will be fully prepared to support portals… Read More

For broker/dealers, crowdfunding presents new opportunity

  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… Read More

Equity Crowdfunders: Mind What You Tweet And Pay Attention To Disclosure

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… Read More

New FAQs on Broker-Dealer Registration Exemption

On February 5, 2013, the SEC released FAQs regarding Section 201 of the JOBS Act, which offers a new limited exemption from broker-dealer registration. In addition to directing the SEC to adopt rules lifting the ban on general solicitation in Rule 506 offerings to only accredited investors (provided… Read More

Finally: AngelList and SecondMarket team up for legal, controlled look-alike to crowdfunding

In perhaps the worst kept secret in venture history, SecondMarket and AngelList have teamed up to allow accredited investors to legally invest purely online on AngelList for the first time. Basically, it’s getting a head start on the JOBS Act while we wait for it to become… Read More

SoMoLend Can Now Facilitate Loans Through Accredited Investors and Family and Friends

SoMoLend’s platform can service a broader range of borrowers and lenders to fuel small business growth CINCINNATI— While it remains somewhat difficult to obtain financing from traditional means, small business borrowers can now reach out to friends, family and other high net-worth individuals to secure financing…. Read More

Dinan & Company Announces Crowdfunding for Accredited Investors

ConfidentCrowd Launches Accredited Investor Access for Broker-Dealer Members In Accordance with Title II of JOBS Act PHOENIX–(BUSINESS WIRE)– Dinan & Company today announced that its unique crowdfunding platform ConfidentCrowd will offer small and mid-sized businesses the opportunity to participate in much larger equity-based financings than available under… Read More

Crowd-funding could come back to bite broker-dealers

New laws that ease restrictions on raising money for small, private companies could come back to bite the securities industry. That was the assessment of Arkansas Securities Commissioner Heath Abshure, who spoke on Thursday morning in Austin, Texas, at a conference of plaintiffs attorneys. Top-of-mind… Read More

Investment Crowdfunding in the U.S. is Dead Before Arrival

  I was excited to attend the Dealflow Media Crowdfunding Conference in San Francisco Monday. However, what I heard about the regulatory process and the anticipated future rules from the SEC and FINRA sounded like most would-be investment portals have already raised the white flag… Read More

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