Managing The Risks Of Crowdfunding

Crowdfunding Risk

By Evan Bundschuh, RPLU  & CrowdFund Beat Guest Editor, For new ventures looking to raise capital or test their market/product, crowdfunding has proven to be the go-to solution with an ease and excitement that other methods of funding lack. With that excitement though comes challenges. As a fairly young platform with a legal landscape that has yet to develop, the risks of crowdfunding are often overlooked. While the risks may seem invisible, mistakes are inevitable, as are the lawsuits and damages that follow. The challenge is forecasting when and where the potential dangers/disasters will arise (before they do) in order to protect your business, its directors, and…

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Evaluating Crowdfunding’s Potential for Investing Platforms


By Rachael Everly @RachaelEverly Crowdfund Beat Guest Post, Crowdfunding is now being viewed as a financial innovation for entrepreneurial projects or other investment prospects. The true success stories can be examined from the Silicon Valley projects as many entrepreneurs made their start-up plans into successful businesses. The initiative created focus for entrepreneurs and the tech ecosystems which ignited the drive for innovation and sustainability. There are a number of factors which lead to Crowdfunding such as lack of mobile/web infrastructure, high cost for the implementation of high end technology, developmental costs and restrictive financial regulations. For most students who become entrepreneurs after graduation, it is more challenging…

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Communications and publicity by issuers prior to and during a “Regulation CF” offering


By Sara Hanks , CrowdFundBeat  Sr.contributing Guest Editor  CEO/Founder, CrowdCheck, Inc. The idea behind crowdfunding is that the crowd — family, friends and fans of a small or startup company, even if they are not rich or experienced investors — can now invest in that company’s securities. For a traditionally risk-averse area of law, that’s a pretty revolutionary concept! In order to make this leap, Congress wanted to ensure that all potential investors had access to the same information. The solution that Congress came up in the JOBS Act with was that there had to be one centralized place that an investor could access that information —…

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Regulation Crowdfunding is a Different Ball Game

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By Brian Bourgerie Crowdfunding Strategy, Personal Cloud Technology, CrowdFund Beat Guest post, For the last six months or so I have been working with both portal owners and offering issuers to prepare for Regulation Crowdfunding (Title III). Having been in the trenches on multiple sides I have been able to observe some of the shortcomings and successes of the new crowdfunding law and those taking advantage of it. I want to focus on one area of observation (and frustration) we have come across. Just because you were successful with Reg D or even Reg A+ doesn’t mean you know what you’re doing with Reg CF. Similarly, having…

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Albright; Letter to Congressman McHenry in Support of “Fix Crowdfunding Act”


"H.R. 4855 democratizes the investing landscape by giving even the tiniest of investors the ability to access alternative growth products and build diversified retirement portfolios. While researching a white paper highlighting the monumental impact of tax-deferred micro alternative investing, we uncovered a staggering correlation between America’s retirement system and its national wealth gap. It appears that America’s wealth disparity began to spike just as the IRA and 401k started replacing defined benefit plans. This was also the same timeframe that American investors were separated by financial stature and divided into two distinct classes: accredited and non-accredited. As depicted in the chart below, unless and until…

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4 Crowdfunding Tips for Women Entrepreneurs


By Rayanne Dany CrowdfundBeat Media Gust Post. When joining the entrepreneurial journey as a woman, you must be well aware of the fact that how difficult it is to make your mark as an entrepreneur in the male-dominated world of business. It is also a fact that most male funders are notoriously slow in investing in women-led startups.   Luckily, women don’t have to stick to the traditional ways of finding the funds for their business. There is Crowdfunding for them, and it is getting popular every passing year. Crowdfunding is a great way for women to pave their way into the business realm. There…

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Crowdfunding: REG A+ Due Diligence!

Crowdfunding with Self Directed IRA?

Crowdfunding USA Conference


REPORT: Is Marketplace lending A temporary phenomenon?


Crowdfund Beat Data Center: Deloitte Report MPLs are online platforms that enable investors to lend to retail and commercial borrowers. Unlike banks, MPLs do not take deposits or lend themselves; as such they do not take any risk onto their balance sheets. They make money from fees and commissions received from borrowers and lenders. The rise of Marketplace lending has urged many commentators to highlight the potential disruption that such new business models may bring to traditional banking. Our research presents a different opinion and instead concludes that MPLs do not currently have the competitive advantage needed to threaten this traditional banking model. However, while…

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Lending Club, Well that was unexpected.

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By Bo Brustkern, CEO NSR Invest, Crowdfund Beat Gust Post, I certainly didn’t think I would be reading about Renaud Laplanche’s resignation as CEO of Lending Club while drinking my morning coffee last Monday. Since then, the news hasn’t gotten any better and emotions are… shall we say, running high? Here at NSR Invest we have fielded a large number of calls from anxious investors over the past several days, so in lieu of our traditional monthly newsletter I figure let’s just talk about Lending Club. But before I weigh in, I need you to keep a couple things in mind. First, this short missive can…

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A New Era begins for Equity Crowdfunding under Title III of the JOBS Act


By Sydney Armani, CrowdFund Beat CEO & Publisher On May 16, the Securities and Exchange Commission’s (SEC) crowdfunding rules under Title III of the JOBS Act go into effect, allowing early stage and growth companies, which may be unable or unwilling to raise capital from institutional or private investors, to gain access to another source of capital. “Title III of the JOBS Act was originally meant to be a game changer for growth companies, adding another way businesses could raise capital in today’s marketplace,” said Alex Castelli, partner and leader of the National Liquidity and Capital Formation Advisory Group at CohnReznick, a top accounting, tax,…

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BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

MottoYou'll Never Believe How Couples Are Paying for IVFMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports. The cost of IVF treatments, a popular choice for women struggling with infertility issues, ave [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 record, Kelly and the band realized that one of [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

CoinTelegraphCrowdfunding vs. ICO: Experts Question Legitimacy and Guarantees ...CoinTelegraphThe simplistic idea behind crowdfunding a non-existent software or system has become a trend in the cryptocurrency industry, but most Bitcoin experts are highly ...and more » [...]

Crowdfund Expansion - Seedrs Moves Into Europe With EU Financial Services PassportForbes“We want break down national barriers and geographic barriers,” says Jeff Lyn, co-founder and CEO of UK crowdfunding platform, Seedrs. “Why limit investment to within fifty miles of your house?” On [...]

ForbesVenture Crowdfunding Revisited: An Update with NIN VenturesForbesI am about to head off to attend the Global Crowfunding Convention (GCC) 6 in Las Vegas. It will be my fourth time attending. The crowdfunding industry has grown from $16 billion in 2014 to $34 billion in 2015, and [...]

Crowdfund InsiderTitle III Crowdfunding Might Not Be What Many ExpectedCrowdfund InsiderI have been immersed in the equity crowdfunding industry since late 2015 and have tried to collect as many different perspectives on the industry from as many experts as possible. And while it is h [...]

PC MagazineHow to Crowdfund Without Going Broke and Irking Your BackersPC MagazineTo say crowdfunding is on the rise would be an understatement. Crowdfunding—raising small amounts of money from a large number of people in order to launch a product, service, or project of some sort—is [...]

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