Archive for July, 2012
Crowdfunding May Be Like the Opening Ceremony at the Games
By Sara Hanks I’m a proud Brit and a proud Virginian (version 1.0) and I see no contradiction there. But it’s as a Brit I’m blogging today. I watched the Olympic Opening Ceremony on Friday night with some Indian and English friends (also Americans 1.0) and a couple of token Americans and I loved [...]
Crowdfunding Needs “Smart, Effective Rules” For JOBS Act
Washington, D.C. (July 27, 2012) Senator Jeff Merkley (D-Oregon) urged the White House in a statement today that “smart, effective rules and consistent, conscientious oversight by the Securities and Exchange Commission” is needed if crowdfunding is “going to take off.” Senator Merkley co-sponsored Senate Bill 1970, which became part of the Jumpstart Our Business Startups [...]
Crowdfunding a Launchpad for Reg A or Reg D Funding under JOBS Act
Congress passed the Jumpstart Our Business Startups Act (JOBS Act) to encourage funding of small business by easing various securities regulations. Among other provisions, the JOBS Act raises the small business exemption under Regulation A from $ 5 million to $50 million (creating a new “Regulation A+),” it will permit general solicitations for equity under [...]
Will Crowdfund Investing Change Wall Street for the Better?
Will crowdfund investing change Wall Street for the better? Perhaps so, acccording to a new article by Mark Wallace of Capitalist Exploits. Mr. Wallace interviewed Dara Albright, founder of NowStreet Media and board member of the Crowdfund Intermediary Regulatory Advocates about the benefits of crowdfunding. The article and interview are republished below, courtesy of Capitalist Exploits. [...]
Wharton Study Shows Crowdfunding Success Depends on Quality of Project, Network and Geography
The secret sauce for crowdfunding success depends on the quality of a project, the quality of friends and the quality of geographic locations, according to a new study by Ethan Mollick, Assistant Profession at The Wharton School of the University of Pennsylvania. On the other hand, the study also found that many projects were subject [...]
Crowdfund Investing Solutions: The Reg D, Section 508 Safe Harbor
David Drake of LDJ Capital continues today with his seventh article on his series regarding crowdfunding for equity solution. The Securities Act of 1933 generally requires that each sale of a security must be registered with the Securities and Exchange Commission. But there is an exception. Regulation D, Section 508 of the Securities Act does [...]
New Study: Crowdfunding Fills Investment Gap
London, UK (July 17, 2012) Crowdfunding could fill an investment gap for entrepreneurs between bank lending and venture capital funding, according to a study released today by the Netsa Operating Company in the UK. The study, entitled “The Venture Crowd,” pointed out a 60 percent growth worldwide in crowdfunding portals. “Quite often, start–up entrepreneurs are [...]
Lawmaker Urges “Light Touch” to Crowdfunding Regulation
Washington, DC – July 13, 2012. (Updated 6:17 pm EDT). At a Washington symposium on crowdfunding under the JOBS Act, Rep. Patrick McHenry (R-NC) urged a “light touch” to crowdfunding rules, while Securities and Exchange Commission (SEC) staff members shed some light on the SEC’s thinking as it develops equity crowdfunding rules that are due by December [...]
Survey Shows Crowdfund Investing Will Have Positive Impact on IPO Market
Capital markets executives believe the new crowdfunding provisions of the Jumpstart Our Business Startups Act will have a postive impact on the US IPO market, according to a new study released by BDO USA, LLP, a financial and tax consulting firm in Chicago. BDO’s study is based on a telephone survey that interviewed 100 [...]
Crowdfunding Can Incentivize Inventions that Benefit Society
Nicholas Carr of the Wall Street Journal recently explored why modern innovation “traffic in trifles.” Sang Lee , the CEO & Founder of Return on Change and a Team Leadership Member of CIFRA offers the following response. a crowdfunding platform focused on high impact startups. You can follow him @RoCSang and Return on Change @RoCspeaks. [...]