What’s the difference between Crowdfunding and Crowdfinancing?

By Lauren Leibowitz, CrowdFundBeat Guest Contributor, Principal at 1st BridgeHouse Securities, LLC,

On October 30, 2015, The SEC approved equity crowdfunding by a 3-1 vote. Equity Crowdfunding was the last piece of the JOBS Act to be approved. Equity Crowdfunding, stipulated under Title III of the Jobs Act has been in regulatory limbo since April 2012. The JOBS Act has 7 separate titles which has made the most significant rules changes to the financial industry since the 1930s. Title III lifted the ban of general solicitation of Reg D 506 private placements, creating Reg D 506c Private Placements (AKA Crowdfinance) and been in effect since September 23, 2013. Title IV amended Regulation A which is now commonly referred to as Reg A+.

AAEAAQAAAAAAAAUTAAAAJDdlN2U0MmIyLWM2MDMtNGJlZi1iZDBjLTUwODdmNWYyNDFiMg

The term ‘Crowdfunding’ has been a general term of art for raising funds through the internet. The crowdfunding concept first became prevalent when popular sites like Kickstarter and Indiegogo offered project creators the opportunity to expose their ideas, hopes and aspirations while asking supporters for needed funds in the form of a donation to make their project come to fruition. Reward Crowdfunding project creators offered their supporters a reward like a T-Shirt, first delivery of product or special acknowledgement, in exchange for their donation. Reward Crowdfunding is not a financial security transaction and supporters (aka backers) not investors therefore not regulated by FINRA or the SEC.

See how the different types of crowdfunding and crowdfinance compare to each other.

If you have a questions about any of the items on the Capital Raise Assessment then contact 1st BridgeHouse Securities at Info@1stBridgehouse.com or (786) 375-5644.

images (1)

 

 

 

Lauren LeibowitzPrincipal at 1st BridgeHouse Securities, LLC,

 

Tags: , , , , , , ,

HEADLINE NEWS

TIMEA Crowdfunding Effort Launches to Commemorate Khadija Saye, Artist Killed in London InfernoHyperallergicOn Saturday, friends and supporters of the artist Khadija Saye — who died in the devastating Grenfell Tower fire in west London last week — launched a crowdfunding campaign to c [...]

Santa Ynez Valley NewsTrikke Tech consolidates operations in Buellton, launches crowdfunding campaignSanta Ynez Valley NewsTrikke Tech Inc. has consolidated all its operations at a new location in Buellton and launched a crowdfunding campaign to help the company expand and introduce n [...]

The HinduMoroccan youth set their sights on crowdfundingThe HinduThe meteoric rise in crowdfunding, which allows an entrepreneur to raise funds from the donations of private individuals, has taken many countries by storm. Some estimates have predicted the industry to be worth around 1 [...]

CBS NewsNow you can crowdfund a 529 college savings plan - CBS NewsCBS NewsIt's getting easier to have friends and family add their contributions to these accounts for college savings.and more » [...]

ForbesThis $130 Million Fund Is Leading The Way In Real Estate CrowdfundingForbesWhen people think of crowdfunding, the first word that jumps to mind is Kickstarter. But crowdfunding is not limited to supporting the next card game or independent film. Crowdfunding is becoming a viable [...]

Business News WalesRaising Capital Through Crowdfunding: A How-To GuideBusiness News WalesRecently, 'crowdfunding' has evolved into a buzzword, with new fintech companies launching in Wales every month. First introduced as a way for charities to raise funds, crowdfunding tec [...]

Forbes"Make Yourself Available" - An Audio Entrepreneur's Tips For Successful CrowdfundingForbesIt takes a brave individual to launch Bluetooth speakers and headphones into a crowded audio market. Take a stroll around your local consumer electronics stores and you' [...]

9to5MacFinal Cut Pro X documentary hits crowdfunding goal, check out the trailer here [Video]9to5MacFinal Cut Pro X has been used for everything from ads to Hollywood movies, but the software didn't get the easiest of rides from the industry when Apple first launched the radicall [...]

PC GamerAshes of Creation launches 'Summer Crowdfunding Extension ...PC GamerThe ambitious MMO Ashes of Creation was successfully crowdfunded in just one day last month, before ultimately accumulating a staggering $3271809—this ...and more » [...]

Business InsiderCrowdfunding for medical expenses - Business InsiderBusiness InsiderAlmost half of the money raised on crowdfunding sites like GoFundMe and YouCaring is going toward medical expenses. Medical campaigns make up $930 ...Americans Losing Health Insurance Turn To Crowdfund [...]

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 |