Monthly Archives: February 2016

Why a Lead Investor is Important and What Can You Do to Find Him

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By Maria Jones | Partnership Manager @ investors angel  Crowdfund Beat Guest Editor, Equity crowdfunding – is a difficult, multi-stage process, during each part of which the entrepreneur encounters new tasks and challenges, on which depend the success of his businesses funding round. However, today we will discuss what can truly make or break the future of your business – that is the topic of lead investors and specifically, how to find them.           Why you need an investor-led model Allow us to form a thought which will form the backbone of this entire article: finding a lead investor is very difficult.…

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Richard Swart on NextGen Crowdfunding



The Seduction of a “New Asset Class” is Killing “Unaccredited Investor” Equity Crowdfunding

The Seduction of a “New Asset Class” is Killing “Unaccredited Investor” Equity Crowdfunding

by Paul Niederer CrowdFundBeat Sr. Contributing Editor While in Thailand on holiday I noticed that having your own stall, stand, shop or business is often the difference between survival and poverty. There are hundreds of thousands of businesses like this. Imagine if you had a business that was valuable to the village and you wanted to raise funds by getting a some village folk to invest. Equity Crowdfunding. Imagine your disappointment if you were told your business is part of a potential “new asset class” and as such  you may pay up to $80k to enable a few mates to invest in their business! Sounds incredulous but it happens every day. As…

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Did a Tech Bubble Just Burst in the Midst of a FinTech Revolution?

Did a Tech Bubble Just Burst in the Midst of a FinTech Revolution?

by Dara Albright, CrowdFunding Beat Sr. Guest Editor, Co-founder of the FinFair Conference, For the past few years I have been renouncing any indication of a tech bubble and instead have been spewing the notion that we are in the midst of a Financial Revolution. But now as the stock market crumbles, the IPO market dries up, as venture capitalists grow much more selective, as valuations of tech studs like LinkedIn are being slashed in half, and with FinTech leaders like Lending Club down over 65% since its public debut, a lot of people have been asking me whether my stance has changed.         The only…

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Hope’s Role in Equity Crowdfunding

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By Paul Niederer CrowdFundBeat Sr. Contributing Editor At a recent Angel Investor event I overheard an entrepreneur seeking capital ask an Angel Investor the following question. “What sectors do you specialise in when selecting investments?” The Angel Investor said he had no special preference as he was primarily after “anything that had enough in it to back up a 10 times return”. That got me thinking. Maybe a “Hope Matrix” like the one below would be a quick way for an entrepreneur or founder to work out where there particular opportunity is best pitched. If they definitely have something that fits squarely in the top right then…

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REG A+ Elio Motors: The company now has a $1B market value at OTCQX

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By Jonathan B. Wilson  partner in the Atlanta business law firm of Taylor English  CrowdFundBeat Sr. Guest Editor, Elio Motors (OTCQX: OTCM), one of the first companies to use the expanded offering potential in Regulation A+, has listed its securities for resale on the OTC QX market. “We are proud to welcome Elio Motors, the first company to raise capital online and go public on OTCQX under the JOBS Act Regulation A+,” said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. “OTC Markets Group welcomes innovators and entrepreneurs and is proud to offer the market of choice for the new generation of…

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5 Tips When Meeting With An Investment Bank

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          Lauren Leibowitz, Principal at 1st BridgeHouse Securities, LLC, CrowdfundBeat Sr. Guest editor, If you are meeting with an Investment Bank then your company has the need to raise capital from outside investors to fuel its growth. An Investment Bank is the intermediary between your company and investors through a capital raise process.  Having an Investment Bank handle your capital raise allows for an independent party to structure a viable transaction that is fair and balanced for the you, the Issuer, and Investors.           Investment Bankers are knowledgeable and experienced in outlining the necessary supporting due diligence, analyzing the…

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Equity Crowdfunding But Whose Crowd Is It?

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by Paul Niederer CrowdFundBeat Sr. Contributing Editor, This article with an Equity crowdfunding headline got me thinking. First equity crowdfunding deal in Australia for 2016 raises more than $675,000 To an entity getting funded to the tune of $675,000 is a great achievement. For a platform to facilitate this is also a great achievement. Well done! However the phrase “With three days still remaining, it has raised $675,000 from 15 wholesale investors” shouldn’t be the substance for a headline like “First equity crowdfunding deal in Australia for 2016 raises more than $675,000”. Even before the words equity crowdfunding evolved an entity could always receive $675,000 from 15…

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What “Solicit” Means Under Title III

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By Mark Roderick , CrowdFund Beat   Sr. Guest  Contributor, @CrowdfundAttny. Before the JOBS Act came along, listing a security on a public website would itselfhave been treated as an act of “solicitation.” That’s the odd thing: Title III portals aren’t allowed to “solicit,” yet in the traditional sense of the term that’s the most important thing Congress created them to do.         The fact is that Congress was ambivalent when it created Title III portals. They are allowed to list offerings of securities, but are not allowed to do other things often associated with the sale of securities, including holding investor funds or offering investment advice. They…

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Landscape of Private Securities Offerings post-JOBS Act

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CrowdFundBeat Data Center ƒ Capital raising levels ƒ Participation by offering method General economic considerations w.r.t. capital formation Update of offering activity post JOBS Act implementation ƒ Title I – Emerging Growth Companies (EGCs) – April 5, 2012 ƒ Title II – General solicitation – September 23, 2013 (effective date) ƒ Title IV – Regulation A – June 19, 2015 (effective date) ƒ Title III – Crowdfunding – May 16, 2016 (effective date) Private Securities Offerings Post Jobs Act Bauguess 022516

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Elio Motors CEO: Regulation A+ Brings Wall Street Back to Its Roots; Benefits Entrepreneurs and Investors, Boosts Economy

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CrowdFundBeat News Wire, NEW YORK, Feb. 25, 2016 /PRNewswire/ — When Elio Motors’ (OTCQX: ELIO) shares began trading on the OTCQX® Best Market last week, the start-up vehicle manufacturer made history. It became the first US-based organization to raise capital using Regulation A+, and also the first to have its shares publicly traded. Nearly $17M in funding was raised on the StartEngine Crowdfunding platform, and those shares are now trading on the OTCQX market. At a media briefing today, Elio Motors’ Founder and CEO Paul Elio praised Regulation A+ as an innovative policy decision that will benefit entrepreneurs, investors and the economy. “Regulation A+ is how…

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Legal Crowdfunding: How an Online Presence Can Help Solve Real-world Problems

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By Colin Guy, An associate at Zimmerman, Axelrad, Meyer, Stern & Wise, P.C. CrowdFundBeat Guest Post, Crowdfunding is not just a tool for innovators to raise money for their next project. It is now also a source that dissatisfied donors can use to finance litigation, including a potential lawsuit against other crowdfunding beneficiaries. Through the website Funded Justice, launched in 2014, funds are being raised to retain counsel in a potential class action lawsuit against the creator of a Kickstarter project that allegedly raised $1,012,742 from 5,685 backers to develop a smartwatch. The campaign for the “AGENT” smartwatch states that donors who pledged $129 or more would…

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HEADLINE NEWS

ForbesTitle III Crowdfunding For Real, Part IIForbesTitle III of the JOBS Act went into effect last year, and many entrepreneurs and small businesses are curious about if it works and how. I had the pleasure of interviewing several companies that have gone through “equity crowdfunding [...]

Crowdfund InsiderIllinois Crowdfunding Starting Strong in 2017 - Crowdfund InsiderCrowdfund InsiderWhile it took longer than expected to get here, Crowdfunding for Illinois businesses is now officially up and running and its full steam ahead. To mark the.and more » [...]

Crain's Cleveland Business (blog)Cleveland Whiskey founder raises a glass to the crowdfunding processCrain's Cleveland Business (blog)Tom Lix, the founder and chairman of Cleveland Whiskey LLC, is part of a Forbes roundtable that looks at how the introduction of so-called [...]

EntrepreneurThis Crowdfunding Category Will Blow Up in 2017, Says the CEO of ...EntrepreneurDavid Mandelbrot believes these kinds of products will be big on the crowdfunding platform this year. He also shares his tips for successful fundraising.and more » [...]

Triple Pundit (registration) (blog)Will Equity Crowdfunding Accelerate Impact Investing in 2017?Triple Pundit (registration) (blog)This past May, a new world of possibilities opened up for social entrepreneurs around the country. The Securities & Exchange Commission (SEC) approved [...]

Science DailyCrowdfunding expands innovation financing to underserved regionsScience Daily"But crowdfunding has opened up funding to everyone else." The article was published in a recent edition of the journal Science. For the study, researchers analyzed data from 2009 to 20 [...]

Crowdfund InsiderReal Estate Crowdfunding Marketplace, Sharestates, Hits $275 Million in Loan VolumeYahoo Finance18, 2017 /PRNewswire/ -- Sharestates, a real estate investment marketplace, has originated $275 million in loans since the platform launched in 2015, making it one of the l [...]

EntrepreneurCan Equity Crowdfunding Be Fixed? - EntrepreneurEntrepreneurWith the adoption last year of the Regulation Crowdfunding (Reg CF) exemptions by the Securities and Exchange Commissionprivate companies can now raise ...and more » [...]

KFDXWhat the Tech: Downfalls of Crowdfunding WebsitesKFDXSupporters of an IndieGoGo project learned this week the company they invested in, has closed shop. Its page on IndieGoGo says it is now under review by the IndieGoGo company. Developers of "The Lily Drone" promised an [...]

The News InternationalSingaporean strangers save Pakistani boy's life via crowdfundingThe News InternationalSINGAPORE: A group of strangers pooled together the funding required for a 10-year-old Pakistani boy's treatment, who has registered a strong recovery after almost suc [...]

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