Maryland Gives Blessing To CrowdFunding Platform Fundrise

By 

Fundrise, a crowdfunding start-up that finances commercial real estateprojects for investors, will be debuting its latest offering on Wednesday morning on its site: a vacant commercial building on 1539 7th Street NW, inWashington, DC that the developer hopes to turn into a boutique retail site. The project is $2 million and $350,000 will be available to the general public.

This will be Fundrise’s 18th project and while in many respects it is similar to the ones that came before it, there is something new. Maryland residents can invest in the project–in as little as $100 increments—for the first time. Prior to this, these projects were only open to DC and Virginia residents.

It took about seven months of working with the state’s Bureau of Securities to get it to sign off, co-founder Ben Miller tells me. “They have been great to work with actually. Once they got comfortable with the concept they were very enthusiastic about letting Marylanders participate.”

 

solution

And so Miller builds puts another piece of his businessplan into play. So far, he has had to go state by state, getting local regulatory approval to sell shares in these projects.

That will, if all goes well, eventually change when the Securities and Exchange Commission puts in place rules to build upon its so-called Regulation A, an existing exemption from registration for small offerings of securities up to $5 million within a 12-month period.

In December, the SEC voted to propose these rules, which would allow companies to offer and sell up to $50 million of securities within a 12-month period. They have been mandated by mandated by Title IV of the Jumpstart Our Business Startup (JOBS) Act.

Fundrise is at the vanguard of these funding campaigns, Miller says. “We have done three Regulation A offerings, more than anyone in the country–approximately 20% of all the Regulation A offerings cleared by the SEC nationally in the past three years. So it’s fairly safe to say we are both an expert on it and can showcase with our latest project on 1539 7th St how it works and why it’s an important story.”

Rule making at the SEC is not exactly a speedy process, though; Miller could well be making more rounds at the local regulatory offices for some time instead of talking up his Regulation A creds.  But the trend is clear, if not the timeline: crowdfunding is well on its way to becoming a mainstream and significant form of finance for small and medium sized companies–along with another way to engage with customers.

See More on http://www.forbes.com/sites/erikamorphy/2014/03/04/maryland-gives-blessing-to-crowdfunding-platform-fundrise/

 

Tags: , , , ,

HEADLINE NEWS

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Technical.ly BaltimoreArbit took to crowdfunding to seek out investorsTechnical.ly BaltimoreThe Baltimore-based social polling company is seeking to raise a maximum of $425,000 through equity crowdfunding, a funding instrument that was first officially made available last year with re [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

ForbesMoney Makes Small Businesses Go Round: Ensuring Access For AllForbesIn 2008, a new form of financing — rewards-based crowdfunding — premiered. With money raised on crowdfunding platforms like Indiegogo and Kickstarter, startups and companies with a new product idea connect direc [...]

Manchester Evening NewsManchester video company Juke Media supports crowdfunding campaignsManchester Evening NewsNuuk Digital have raised over £12m creating and designing crowdfunding campaigns in just 18 months, including campaigns for Smacircle – an e-bike that fits in your backpack [...]

EE TimesEngineer Looks to Crowdfunding to Stoke Kids' Interest in ElectronicsEE TimesProtoBricks launched on the Indiegogo crowdfunding platform Tuesday (Aug. 15). The goal is to raise $100,000 within the next 40 days to bring the product to the shipping stage, expected to begin [...]

Indiana pioneers crowdfunding community projectsWTHRA downtown Greensburg mural made possible by community donations, Patronicity.com, the Indiana Housing and Community Development Authority and other local organizations, as seen on Aug. 3, 2017. (Main Street Greensburg Photo via ... [...]

CNETKickstarter alternatives: Choosing a crowdfunding platform - CNETCNETCNET@Work: Before launching a crowdfunding campaign, it's worth exploring the differences between Kickstarter and its competitors.and more » [...]

Global Crowdfunding Market 2017-2021 - Market to Decline at a CAGR of 16.96% - Research and MarketsBusiness Wire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market [...]

CFB Finance

Marketwired

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

Press Release

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 |