7 Tips for Businesses to Prepare for Title III

admin-ajaxBY Judd Hollas, Founder & Chief Inventor, EquityNet
The crowdfunding industry is gaining serious momentum, and with the implementation of Title III of the JOBS Act coming up next year, entrepreneurs will soon have many more options when it comes to fundraising. Title III will allow many Americans who are not considered high-net-worth individuals to invest in private small businesses and startups to own a percentage of those companies. This is going to give entrepreneurs a much larger selection of potential investors than ever before. It’s anticipated that Title III won’t come into effect until sometime next spring, but proactive entrepreneurs can take action now to be prepared to leverage this new law when it gets passed.
1. Assess your need to utilize Title III
Fundraising needs vary depending on a company’s industry and Title III will put certain rules in place that some entrepreneurs may find cumbersome. Under the Title III exemption, funds raised from all types of investors will not be able to exceed $1 million in a 12-month period. This might be suitable for entrepreneurs looking for capital in the six-figure range, but those seeking larger investments will need to be willing to launch multiple fundraising campaigns.
Other equity crowdfunding (ECF) options exist that might be more appropriate for certain entrepreneurs. Type I ECF uses Regulation D exemption 506(b). Type II ECF uses Regulation D exemption 506(c). Both Types I and II allow qualified companies to raise an unlimited amount of capital. Under Type I ECF, however, the offering cannot be publically advertised. Type II ECF allows the offering to be publically advertised, but only accredited investors can participate.
2. Familiarize yourself with the regulation requirements
Entrepreneurs will have to supply the SEC with a significant amount of information in order to participate in Type III ECF (that is, equity crowdfunding under Title III). Some of this information will typically include the intended use of funds raised, the financial history of the company, the professional histories of the management team, and information about owners of the company who represent 20 percent ownership or more.
3. Find the right crowdfunding platform
There are several different types of equity crowdfunding platforms; each with their own capabilities and opportunities for both entrepreneurs and investors. Sites like EquityNet and AngelList are the leading equity crowdfunding platforms based on member population and capabilities. As an entrepreneur, you will need to determine which type of ECF platform best suits your needs. Look for a platform that stands by its policies to protect its members from fraud. You will want to make sure the ECF platform you choose vets its investors. You also want to choose a platform that provides you with an impressive array of fundraising tools, such as EquityNet’s patented business plan and analysis software. Lastly, you want an ECF platform that can provide ancillary services and assistance with your fundraising campaign. Source and read more on

See Judd Hollas interview on Live Crowdfunding.tv
https://crowdfundbeat.com/video/?p=4810

http://blogs.the-ceo-magazine.com/guest/crowdfunding-7-tips-businesses-prepare-title-iii

Tags: , ,

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ForbesHow This Millennial Built A 7-Figure Business Using Equity CrowdfundingForbesWhen he asked them to help fund his company's crowdfunding campaign, they delivered—exceeding his initial goal fourfold and ranking it one of the fastest and most successfully funded companies on R [...]

WJLAHomeFundMe: Crowdfunding for a down payment | WJLAWJLABOISE, Idaho (KBOI) - You've likely heard of GoFundMe, the crowdfunding website, but have you heard of HomeFundMe?It's a website aimed at raising money for the down payment on a home.There is no repayment! This is a t [...]

Final '68, crowdfunding campaign ends in just one weekPlanetmountainThe crowdfunding campaign for Final '68, the project that aims to document the exploratory phase of the Pietra del Finale between the years 1968 and 1975, will come to an end in seven days time. There are ju [...]

Digital News AsiaNewly licensed Singapore crowdfunding player kickstarts platformDigital News AsiaSINGAPORE start-up, FundTier, launched its crowdfunding platform officially after obtaining the Capital Market Services (CMS) licence in December 2017. Founded by five former bankers, Fun [...]

Crowdfunding site Beam provides job training for homeless 'in a dignified way'CTV NewsHe is among the first to benefit from a high-tech project to use the internet and crowdfunding to help the homeless. The founder is an entrepreneur by the name of Alex Stephany who created [...]

Oval Money surpasses £500000 crowdfunding target in 72 hoursFinextraOval Money's latest fundraising campaign was conducted on crowdfunding platform Crowdcube. The £500,000 target represented nine percent of the company's equity, but the overfunding is increasing the equity t [...]

Brewbound.comFull Circle Brewing Raises $800000 Via Equity Crowd FundingBrewbound.comFRESNO, Calif. – Full Circle Brewing Co., Fresno-based craft brewery, announces their progress of securing $800,000 of capital. They are more than three-fourths to their goal which is projected to inc [...]

Entrepreneur3 Crowdfunding Tips Every Company Forgets From a Brand That Raised $800000 and Got AcquiredEntrepreneurCrowdfunding takes a lot of planning, whether you're gearing up for a launch, a ship date or thinking about the next source of funding you'll pursue. But it [...]

Entrepreneur12 Key Strategies to a Successful Crowdfunding CampaignEntrepreneurI've Raised Close to $2 Million in Crowdfunding Campaigns -- Here Are My Secrets · Next Article. 12 Key Strategies to a Successful Crowdfunding Campaign. Image credit: Shutterstock · Aj Agrawal • Contr [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

2018 Fintech World Conference & Workshop, Announcement:Game Changer” Fintech World Media, PR & Marketing Group Proudly Presents: lnkd.in/gqdCrTr

Live Crowdfunding .tv

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 |