Why 2016 is the Year of Equity Crowdfunding

By , Editor at opp.today, Crowdfunding Guest post,

United States equity crowdfunding could double the capital raised this year to generate up to $4billion and 2016 will be the Year of Equity Crowdfunding, industry experts predict.

The growth and potential of the sector has been discussed at the 4th Annual Silicon Valley Crowdfunding event, particularly in light of the latest revision of the JOBS Act. The whole debate can be seen on the CrowdFundBeat website.

FullSizeRender (9)

In fact, 2016 has been dubbed the’ Year of an Equity Gold Rush’, with new methodologies being introduced, including the Title III of the JOBS Act and the maturation of peer-to-peer lending.

From 16 May, most of the new Securities and Exchange Commission (SEC) rules under Title III of the JOBS Act, go live, which will open up non-accredited investors to equity crowdfunding and approves online platforms intending to legally solicit offerings.

Title III fundraising allows issuers to raise up to $1million via equity crowdfunding. For the first time in history, small businesses can trade an equity stake in all future profits in exchange for a valuable influx of funds, without the burden of registering with the SEC.

The new rules allow individuals to invest in start-ups online by purchasing equity securities in crowdfunded companies via SEC-registered crowdfunding portals. They require companies raising money to disclose certain information about their business and securities offering, limit how much individuals can invest based on their income and net worth, and creates a new regulatory framework for the crowdfunding portal intermediaries facilitating crowdfunding transactions.

The two day 4th Annual Silicon Valley Crowdfunding Conference, attended by nearly 300 crowdfunding professionals, platforms, and pundits, discussed various industry issues including the expansion of real estate crowdfunding through online platforms;, various critiques on disclosures, the advantages of Reg D or Reg A+ offerings and a general political debate on what is expected under a new administration.

Sydney Armani, Chief Executive Officer and Publisher of CrowdFund Beat Media Group, tells OPP.Today, “As you know, one of the last provisions of the JOBS Act, namely Title III (unaccredited investor investing) will go live in May 2016, and that may lay a path for more SME opportunities. Regarding real estate crowdfunding, there are high hopes that Regulation A+ will be utilized for larger investments and the pooling of diversified funds.

“One of the key observations is that this is definitely becoming an institutional game. While the initial goals of the JOBS Act were to address SME capital availability and more democratic investing, we have seen the tides move into the applying technology in marketplace platforms where the ‘crowd’ is now inclusive or UHNWs, family offices, small to medium hedge funds, and other institutional players. This will bode well for more capital directed into smaller transactions, as intermediation costs should be reduced with the deployment of technology.

“Firms from Main Street to Wall Street seem to be jumping on board with technology enabled distribution. We will see how larger deals can be fractionalized into tranches not earlier done availing more investors to participate.”

In June 2015 Title IV of the JOBS Act opened the door for main street (non accredited) investors worldwide to invest in private companies having headquarters in the USA or Canada and allows startups and small businesses to raise a maximum of $50million through crowdfunding.

Adrian Bishop is editor of OPP.Today and is a national award-winning editor and journalist with more than 30 years’ experience. He has held several senior editorial roles in the overseas property sector.
Read more at http://www.opp.today/why-2016-is-the-year-of-equity-crowdfunding/#rorzIvhRo4tlwmt5.99

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 [...]

ThinkAdvisorNASAA Warns of Marijuana-Related Crowdfunding ScamsThinkAdvisorThe North American Securities Administrators Association warned investors Monday to be wary of marijuana-related crowdfunding ventures and other risky or potentially fraudulent schemes that could swindle them o [...]

ForbesThe Celebrity Who Loves Crowdfunding: Lala Anthony Hosts New Series Featuring Female EntrepreneursForbesIt's been proven that funders clicking through projects on crowdfunding sites seem to prefer early-stage, female-led ventures, and one celebrity is looking to highlight t [...]

Positive.NewsCrowdfunding flower power in WalesPositive.NewsResidents in north Wales decided to act to help a local patch of land flourish. They hope their successful crowdfunding campaign will help them continue restoring this “beautiful meadow”. Locals launched the Gweld y ddôl – Se [...]

TechCrunchOn-demand pharmacy startup NowRx raises $7 million Series A round through crowdfundingTechCrunchNowRx, an on-demand pharmacy solution of sorts, just closed a $7 million Series A round via the SeedInvest crowdfunding platform. The company had previously raised a $3 million se [...]

Kerala to launch crowdfunding platformThe New Indian ExpressTHIRUVANANTHAPURAM: The state government's crowdfunding initiative to rebuild the flood-ravaged state will begin on Tuesday. The implementation of various rebuilding project will be entrusted with credible agencies, appr [...]

TimesLIVECrowdfunding to save South African national detained in Vietnam for drug smugglingTimesLIVEThe family of South African national Tyron Lee Coetzee who was sentenced to death for smuggling cocaine in Vietnam‚ is pulling out all the stops to save him. They recently started a cro [...]

India TodayKerala CM launches online crowdfunding platform to rebuild stateIndia TodayKerala Chief Minister Pinarayi Vijayan on Tuesday (October 16) launched an online platform, seeking the support of people from across the world in rebuilding the state from ruins of the August mega f [...]

The Drinks BusinessBrewdog raises over £26 million from donors in 5th crowdfunding roundThe Drinks BusinessThe company secured £26.2 million from around 50,000 investors in its fifth crowdfunding campaign, bringing its total number of investors close to 94,000. The campaign — which th [...]

SME Magazine5 things you need to do to launch a successful crowdfunding campaignSME MagazineAlternative finance offers unique funding opportunities for start-ups, and this is particularly true when it comes to launching a crowdfunding campaign. So, what determines a successful crowdfu [...]

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 |