Pros and Cons of Regulation A+

Crowdfunding with Self Directed IRA?

“The Fix Crowdfunding Act”

BY Lauren Leibowitz, Principal at 1st BridgeHouse Securities, LLC, Crowdfund Beat Sr. contributing editor, The Evolving Crowdfunding Regulations: Now Presenting “The Fix Crowdfunding Act” On April 5, 2012 the JOBS Act was passed. On October 30, 2015 Title III: Equity Crowdfunding final rules were passed which marked all 7 Titles of the JOBS Act were approved. Recently, the ‘‘Fix Crowdfunding  Act’’ was  introduced to Congress to improve Regulation Crowdfunding.  FINRA and SEC has taken an approach of letting the crowdfunding industry cultivate the business model and the regulators will oversee and implement regulations on an as needed basis. The integration of technology within the private capital markets is…

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A CEO’s Perspective Crowdfunding with “REG CF Title III”

By Terry White is the Founder/CEO of athletic apparel company WOLACO. Crowdfund Beat Gust Post Since Title III of the Jobs Act just recently went into effect we decide to get a closer look at how CEOs actually view the new legislation in respect to their future financing needs. We had an opportunity for a Q&A with Terry White the Founder/CEO of athletic apparel companyWOLACO.  He was able to share with us the company’s history as well as their first crowdfunding experience with Kickstarter and his perspective on Title III. CT: What does WOLACO mean? TW: WOLACO is an acronym for Way of Life Athletic Co. I thought…

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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.

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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What’s Seed Equity CrowdFunding, known as “REG CF Title III”?

By Rod Turner  founder and CEO of Manhattan Street Capital, Crowdfund Beat  Guest Editor, The SEC’s new Title III Equity CrowdFunding rules went into effect May 16th. These new rules expand Equity CrowdFunding to allow investors at all wealth levels to invest in startup companies. In June 2015, the SEC also enabled groundbreaking new rules called Regulation A+ which allow anyone to invest in startups and more established companies that need to raise up to $50 million. The capital raising landscape is making its biggest shift in decades. We now have an online fund raising continuum that extends from startups raising seed capital of as…

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SEC’s Guidance On Advertising By “REG CF Title III”Issuers

SEC’s Guidance On Advertising By “REG CF Title III”Issuers

By Mark Roderick Shareholder, Flaster/Greenberg P.C. CrowdFund Beat ‘s  Sr.Guest Editor. The SEC just provided guidance for Title III issuers in the form of Compliance and Disclosure Interpretations. You can read the CD&I’s themselves here. Before Filing Before filing Form C (the disclosure document used in Title III) and being listed on a Funding Portal, a Title III issuer may not take any action that would “condition the public mind or arouse public interest in the issuer or in its securities.” That means: No Demo Days No email blasts or social media posts about the offering No meetings with possible investors After Filing Once a Title III…

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New CrowdFunding Rules are a Game Changer

By Joel Block CEO at Bullseye Capital MarketPlace Partners, LLC , CrowdFund Beat Guest Post, This was an historic week in the securities industry. Rules that have been in place for more than 80 years were smashed and replaced with new, modern rules that allow citizens from every walk of life to invest in start-up companies right on the Internet. In the past, private placements had to be kept private which effectively meant that you had to be a millionaire to get into a private placement and make any money. Nothing seems more un-American than having to be a millionaire to make money in the United States…

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Mary Jo White remarks on SEC Advisory Committee on Small and Emerging Companies

SEC Chair Mary Jo White May 18, 2016 Good morning.  Thank you, Sara and Steve.  And thank you all for being here today.  I want to respect the full agenda you have, and so will be brief in my remarks. My overall perspective on our mission in the important spaces you occupy is that small and emerging companies are critical drivers of innovation and our economy and our rules should provide them a range of options for raising capital, understanding their diversity of business models and capital needs, while ensuring that investors can have the confidence in the market that comes with strong protections. As…

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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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CrowdEngine First to Offer Regulation CF Crowdfunding Software

Crowdfund Beat News Wire,  Washington, D.C. – May 16, 2016 – CrowdEngine to demo it’s Compliance Engine™ features for the new Regulation Crowdfunding rules today at the Capital Washington D.C. for Members of the House, Senators, and 300 other well respected guests.  CrowdEngine’s compliance automation solution and white-label crowdfunding software allows entrepreneurs to launch funding portals in a fraction of the time than building from scratch to achieve lower costs, and better investor experiences. “We are proud to be the first to offer a solution for funding portals to offer securities under the new Regulation Crowdfunding rules.   Our secure, cloud-based compliance automation platform is trusted…

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iDisclose Teams up With New Regulation Crowdfunding Funding Portals

The Solution Eases the Burden and Helps Entrepreneurs Create and File Their Own Form C Securities Disclosure With the SEC, Which Is Mandated Under the Agency’s New Crowdfunding Rules               NEW YORK, NY–(Marketwired – May 13, 2016) – iDisclose, announced today that several of the leading new Title III Crowdfunding funding portals at various stages in the SEC and FINRA approval process will be using iDisclose either on an exclusive basis or as a tool they can offer to assist issuers on their portals. Funding portals committed to compliance are choosing iDisclose as a low cost high quality legal…

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Trouble In Paradise: Lending Club And Prosper

By Mark Roderick CrowdFunding Beat  Sr. contributing editor and crowdfunding attorney with Flaster/Greenberg PC. Lending Club and Prosper are going through a rough patch. Renaud Laplanche, the CEO and founder of Lending Club, just resigned amid allegations of financial irregularities, while Prosper recently laid off more than a quarter of its employees. But those are only the ripples on the pond’s surface. What’s going on underneath is that Wall Street is losing faith in the business model – that is, losing faith in the quality of the loans made on the Lending Club and Prosper platforms. Not long ago, Wall Street financial institutions couldn’t get enough of Lending Club and…

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Is this the End of Marketplace Lending?

By Dara Albright,CrowdFunding Beat Sr.Guest Editor, Co-founder of the LendIt conference& the FinFair Conference, Monday’s news that Renaud Laplanche was stepping down as Lending Club’s CEO sent shockwaves throughout the industry – particularly coming hard on the heels of industry layoffs and disappointing earnings announcements. Since Monday morning, the alarmists have been out in full force, nonsensically declaring the end of marketplace finance and FinTech in general. But what some may consider the end, I view as a new beginning. “What the caterpillar calls the end of the world, the master calls a butterfly.” – Richard Bach Cynics, I have a newsflash for you. When the automobile industry…

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Will Equity Crowdfunding Overtake Angel and VC?

BY Alex Topchishvili, Director of Marketing at Wemultiply, a 9.8 Group Company, CrowdFund Beat Guest post, In 2010, AngelList began to use the internet to disrupt the traditional early stage funding model, allowing individual angel investors to engage directly with early stage companies, access their ideas and plans, perform diligence, and individually fund, or pool capital in support of early stage deals – democratizing the investment process for accredited investor participants.  In line with this and other developments, angel networks, empowered by the Internet and an ability to share information, began to expand their reach, at the same time as VC’s began to look for…

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REPORT: Opportunities and challenges in online marketplace lending

  By John M. Pachkowski, J.D. The Treasury Department has released a white paper regarding its review of the online marketplace lending industry that commenced with the Treasury Department’s Request for Information in the summer of 2015. The white paper entitled, “Opportunities and Challenges in Online Marketplace Lending,” provides an overview of the evolving market landscape, reviews stakeholder opinions, and provides policy recommendations. The white paper also acknowledges the benefits and risks associated with online marketplace lending, and highlights certain best practices applicable both to established and emerging market participants. It should be noted that the white paper explicitly stated that “this document is not an…

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Just another day…..

  By Steve Cinelli , CrowdFund Beat Sr. Editor, @stevecinelli Quite the events in the marketplace finance sector over the last week.   Originally icons, now fallen stars, Lending Club (LC), OnDeck Capital (ONDK) and Prosper (PSPR) are exhibiting possible growing pains or even further symptoms of a more serious condition, namely questionable business models. It seemed only yesterday that firms such as Goldman Sachs and execs like Jamie Dimon expressed anxiety about the challenges to the conventional banking business that these new models would bring on.  Deal and profit erosion was the concern as these nascent yet compelling platforms were accomplishing what the banking industry couldn’t,…

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The Private and Public Capital Market Disclosure World

The Private and Public Capital Market Disclosure World

BY Lauren Leibowitz, Principal at 1st BridgeHouse Securities, LLC, CrowdfundBeat Sr. Guest editor, This blog is a part of a 3 blog series. Click here to read Part 1: The apples and oranges of Crowdfunding – Reward/ Donation Crowdfunding is not investing and Part 2: The inconvenient truth: Most Startups Fail – the Risk Vs Reward trade-off in the PIPR Market PART 3: THE PRIVATE AND PUBLIC CAPITAL MARKET DISCLOSURE WORLD Transparency is efficient The JOBS Act of 2012 amended securities regulation which have been in place since  1934 is shifting the dynamics of the private capital markets. Private companies can advertise their securities offerings to a bigger and even global market of potential investors because of the removal…

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The Democracy of Capital

By Howard Marks Executive Chairman and co-founder at StartEngine Crowdfunding CrowdFund Beat Guest Post A Revolution for the 99 Percent In 1929, ordinary investors got a taste of how capital markets can go wrong. Many small investors lost all of their capital, businesses shut down, and the United States entered into its worst economic collapse in its history. Unless something was done to prevent another disaster, our democratic institutions were at great risk. Enter the Securities Exchange Commission under President Roosevelt. Its mission is to protect investors from taking more risk than they can afford. The SEC was created under the Securities Exchange Act of 1934, which essentially regulated…

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Crowdfunding USA Roundtable Discussion

Daft or Deft – Trump the National Debt

By Steve Cinelli , CrowdFundBeat Sr. Editor, @stevecinelli Can the political narrative get any stranger, and in many ways, even incredulous?   First off, the country is undergoing an election season wherein the two front runners are disdained by the majority of Americans.  One (the Dem) purports to have experience, but seriously, she merely has had “exposure”:  yes, a nice (planned) resume, but has she actually accomplished anything as a statesperson or legislator?  Ask about “her” treaties or “her” laws or initiatives that have translated into real progress or meaning, domestically or abroad. Seems to be a goose-egg. But give her credit for marketing…  Then the other…

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Understanding Securities Law to Start Your Business?

Understanding Securities Law to Start Your Business?

By Samuel E. Whitley,  Whitley LLP Attorneys at Law. CrowdFund Beat Guest post, The following is a guest post written by Samuel E. Whitley, a valued WealthForge partner and managing partner at Whitley LLP Attorneys at Law. YES. Or you need to hire someone who does. While some small businesses may not deal with public or private offerings, many companies do. Often a company will want to raise capital through a public offering, or via the Internet (crowdfunding) for instance. Because of this, all business owners should have a working knowledge of securities law.       What are Securities? Essentially, a “security” is defined as…

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Crowdfunding USA: National Press Club

PRESS RELEASE 5th of May 2016 WASHINGTON DC – Celebrating its third year, CrowdfundBeat Media is hosting the much acclaimed DC Crowdfunding Conference at the Capitol’s National Press Club on 5-6 May 2016.   With an industry still in development, the Conference will bring together thought-leaders, practitioners, and pundits, discussing some of the new chapters in the Crowdfunding playbook, such as Regulation A+ and the implementation of Title III of the JOBS Act, namely crowdfund investing for non-accredited investors.   Crowdfunding, or more generally described as Marketplace Finance, has seen exponential growth in many areas, such as Peer-to-Peer (P2P) Consumer credit, Small-to-Medium Enterprise (SME) lending, and now…

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Reg A+ Offering : 8 Tips to Funding Success

By Rod Turner  founder and CEO of Manhattan Street Capital, Crowdfundbeat Guest Editor, The doors to Reg A+ are now open, with approximately 100 filings, 29 qualified by the SEC, to seek an average $23 million goal. The aggregate capital being sought is now $1.5 billion. The first company to complete a Reg A+ offering, Elio Motors, raised $16.9 millionfrom 6,600 investors at a pre-money valuation of $300 million, and is now listed on the OTCQX.               If you’re considering raising funds with Reg A+, check out the following tips:  1. Don’t Underestimate The Importance of Consumer Appeal. In…

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CrowdfundBeat to Host Crowdfunding USA Conference at Washington D.C.’s National Press Club

May 3, 2016 @ 8:22 am By Samantha Hurst – CF Insider On Monday, CrowdfundBeat will be hosting the annual Crowdfunding USA Conference at Washington D.C.’s National Press Club on May 5th-6th. The event will bring together thought-leaders, practitioners, and pundits, discussing some of the new chapters in the Crowdfunding playbook, such as Regulation A+ and the implementation of Title III of the JOBS Act, namely crowdfund investing for non-accredited investors. The conference will also host an impressive group of speakers and panelists, to assess, debate, and prognosticate the elements of the market and its practices. The roster of speakers are: David Rose: Founder of…

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Fintech: A policymaker’s Perspective

Fintech Wave of the Future?

CrowdFundBeat News Wire, BROTHERS PATRICK AND JOHN COLLISON CHALLENGE THE FINANCIAL STATUS QUO WITH THEIR PAYMENTS START-UP STRIPE –  “60 MINUTES” Patrick and John Collison are among a vanguard of entrepreneurs trying to make the movement of money online as easy as sending photos or videos. The young founders of Stripe, a $5 billion payments startup, appear in a Lesley Stahl report on the burgeoning industry known as “Fintech,” which is challenging traditional financial institutions. Stahl’s report will be broadcast on 60 MINUTES Sunday, May 1 (7:00-8:00 PM, ET/PT) on the CBS Television Network. “In a world where people can send a Facebook message or…upload an…

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Why VCs Do Not Like Equity Crowdfunding

By Howard Marks Executive Chairman and co-founder at StartEngine Crowdfunding CrowdFund Beat Guest Post, In April 2012, President Obama signed the JOBS Act and announced that Americans will now have access to the capital they need from ordinary investors. Yet the media received the declaration quietly — meaning most U.S. citizens remained blissfully unaware of this revolutionary new regulation. The venture capital industry is probably one of the most vital sources of risk capital for our economy. It has produced the industry giants that command worldwide success: Google, Apple, Microsoft, etc. Without VC, most of those businesses would have never existed. Moreover, VCs have significantly contributed to our country’s technological success. Most people…

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Can retail investors compete with hedge funds in p2p ?

George Popescu Founder and Editor in Chief (Lending Times), Partner ( LunaCap Ventures), Board of Advisors (Gatecoin, AltOptions) CrowdfundBeat Guest post LendingRobot is claiming that it is difficult for retail investors or even high net worth individuals to manage so many micro-loans and to simultaneously compete with hedge funds looking to scoop the best loans under microseconds. Peer-to-peer lending was designed to provide a platform to the investors and borrowers to lend and borrow money without the intrusion of a financial intermediary. Investors need LendingRobot’s algorithms to compete with Hedge Fund algorithms to get the best returns out of these sites. LendingRobot was co-founded by Emmanuel Marot and…

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Crowdfunding: No Demo Days For Title III Issuers

By Mark Roderick CrowdFunding Beat contributing editor and crowdfunding attorney  with Flaster/Greenberg PC. Crowdfunding is a marketing business. But when it comes to marketing an offering of securities by a Title III issuer, things get complicated. That’s why this is three times longer than any blog post should be. Why It Matters Section 5(c) of the Securities Act provides that an issuer may not make an “offer” of securities unless a full-blown registration statement is in effect, of the kind you would prepare for a public offering.         There are lots of exceptions to the general rule and Title III is one of them:…

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Marketing for Crowdfunding

By Ashleigh Everston  CrowdfundBeat Guest Contributor, Influencer Marketing for Crowdfunding: An Equation for Success! Crowdfunding is the first step towards successful entrepreneurship. Without having the right financiers in your pocket, you cannot make your dream startup a reality. You may say that the financers are your primary target audience to position your startup venture. To promote a potential business idea, you needa support system of people who can promote your brand to the right audience, and who can do this better than influencers. Influencers are industry experts who give their insights into best practices and trending topicsof a particular area of field. These are the people who…

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Equity Crowdfunding: Is It For You?

Image credit: Jim Frazier

By Rick Pendykoski, Crowdfund Beat Guest Post, Equity crowdfunding is a huge trend in the startup market, helping a number of companies launch their goods and services without heavy investment of their own. While it’s widely considered one of the coolest ways to see ideas come to fruition, equity crowdfunding may not be the best option for every investor. What is Equity Crowdfunding? Crowdfunding is the practice of raising funds for a venture or project through the collective efforts of a large number of individual investors, largely through online crowdfunding platforms. Equity crowdfunding, also known as invest crowdfunding or crowdinvesting, is an online process where…

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THE INCONVENIENT TRUTH: MOST STARTUPS FAIL

BY Lauren Leibowitz, Principal at 1st BridgeHouse Securities, LLC, CrowdfundBeat Sr. Guest editor, This blog is a part of a 3 blog series. Click here to read Part 1: The apples and oranges of Crowdfunding – Reward/ Donation Crowdfunding is not investing. PART 2: THE INCONVENIENT TRUTH: MOST STARTUPS FAIL The Risk Vs Reward tradeoff in the PIPR Market Startups can fail for many different reasons and most do!  Within the Final Regulation Crowdfunding Rules, the SEC comments about theSurvival Rates for Startups and Small Businesses Startups and small businesses that lack tangible assets or business experience needed to obtain conventional financing might turn to securities-based crowdfunding in reliance…

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Peter Thiel on Future of Fintech

Blue Sky, Regulators, Crowdfunding and “The Crowd”

Blue Sky, Regulators, Crowdfunding and “The Crowd”

By Paul Niederer Founder Raiseworth, CrowdFundBeat Sr. Guest Editor, What the crowdfunding industry has taught us worldwide is that “the crowd” will “out” a bad actor long before any of the regulators do. Regulators came out of the USA “blue sky” laws written state by state between 1911 and 1931. In these times there was no internet, little communication from town to town, regulators used broad laws to catch bad actors when they needed to, and when they found them. They may have got “tip offs” but as can be seen in this article the regulator often chooses their target.           It was…

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HEADLINE NEWS

BBB Tip of the Week: Giving to crowdfunding sitesThe Spokesman-ReviewThere is a good chance if you are on social media or have an email account that you have been sent a link to a crowdfunding site to support an individual or organization. GoFundMe.com, YouCaring.com, Kickstarter.com [...]

messenger-inquirerLaw change could boost state crowdfunding lawsmessenger-inquirerVideoscore owner Darryl Ingram decided to seek Wisconsin investors through a process called state crowdfunding, a relatively new and underused tool available to small businesses. What he didn't real [...]

NanalyzeSelf Crowdfunding and the Failure of PlastcNanalyzeDeath is a sad thing when if befalls the people around us, and there are 5 stages of grief that people go through when they are mourning the loss of a loved one. There is now a 6th stage of grief that seems to have appeared la [...]

Madison.comLaw change could boost little-used state crowdfunding lawsMadison.comDarryl Ingram of Racine founded a consulting business, Videoscore, that helps high school athletes connect with college teams. He hopes relaxed federal rules for state crowdfunding makes it easier for entr [...]

PR Newswire (press release)Vodi's Crowdfunding Round Reaches More Than $60,000 Raised in ...PR Newswire (press release)The next-generation mobile messaging app eclipses its first fundraising milestone with more than 70 investors on the WeFunder platform.and more » [...]

Daily MailCrowdfunding for 'off-road wheelchair' for Luke WoodDaily MailA student left in a wheelchair and unable to communicate after a horrific car crash is trying to crowdfund £15,000 to buy a 'life-changing' wheelchair that will let him leave his rural home whe [...]

Black EnterpriseWomen Are Crowdfunding Their Maternity Leave in DrovesBlack EnterpriseWith only three states (California, New Jersey, and Rhode Island) mandating paid family leave, expecting parents are turning to crowdsourcing platforms to fund maternity and paternity leave after the [...]

Mitchell Chapman: Crowdfunding proves to be no panaceaBerkshire Eagle (subscription)PITTSFIELD — Since the establishment of crowdfunding sites such as GoFundMe, Kickstarter, and Patreon, individuals and teams on the internet have been able to subvert traditional means of publishing an [...]

NewsOK.comVideo: Crowdfunding campaign launched on behalf of Jimmy LaFave, who has rare terminal cancerNewsOK.comRed dirt music pioneer Jimmy LaFave, who came of age in Stillwater and went on to become an Austin, Texas, music icon, has been diagnosed with a rare form of terminal cance [...]

MetroMP crowdfunding election campaign raises thousandsMetroJess Phillips, who represents Birmingham Yardley, asked people 'to 'give as little or as much as you can' to help her retain her seat in June's general election. She claimed that elections in her constitue [...]

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What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |