The Pros And Cons Of Equity Crowdfunding

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Equity Crowdfunding Platforms: How Many Will There Be? (Expert FAQ)

Im worried there will be some entrepreneurs who think that since they are taking money in smaller increments that they dont have to put as much thinking into their business plan, said Sherman, who has written 24 books about business growth. The legal commitments of equity crowdfunding could also be a heavy burden for tech startups.
visit http://tech.co/pros-cons-equity-crowdfunding-2013-08

Companies may raise up to $1 million per year in equity. Caron Beesley , the community moderator for the U.S. Small Business Administration’s blog, says, “Previously, small businesses were also limited to seeking investment from SEC-accredited investors only.” These high income people that are more apt to understand what they are buying. “Change is coming, however, and soon the investors like you and I will be able to enter the crowdfunding market,” Beasley says. The initial deadline for SEC to finalize its rules and launch the program was set for Dec. 2012. But in an effort to prevent fraudsters from ripping off unaccredited investors, the agency labored with keeping them off the portals. At the same time, SEC did not want to tighten the rules so much that it becomes too costly for small-business owners to participate. One rule in particular was problematic.
visit http://www.huffingtonpost.com/jerry-chautin/equity-crowdfunding-is-se_b_3741060.html

Equity Crowdfunding Is Set to Begin This Fall for Small Business Owners. Are You Ready to Snag $1 Million?

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The businesses that are most likely to benefit from equity-crowdfunding are those that find it challenging to locate capital through other means. For instance, entrepreneurs located in rural areas, first-time entrepreneurs that have yet to establish the right connections, or businesses pushing a value proposition that is somewhat ambiguous or unclear. Businesses that are aimed at providing products or services to individual consumers also have a leg-up here, because they can benefit from directly engaging with those customers early on. However, you will also want to keep in mind that angels and VCs are often able to provide other support, since they often have business experience and can help guide you. If you are a first time business owner, or you are new to the industry in question, this guidance could prove critical. Crowdfunding comes with its own particular costs and benefits.As far as the benefits go, a major selling point of crowdfunding is that it allows you to engage with customers early on, to stimulate word of mouth and buzz.
visit http://www.nerdwallet.com/blog/investing/2013/equity-crowdfunding-platforms/

SEC Attempts ‘Balance’ In Equity Crowdfunding Plan

In this extremely unlikely scenario, your crowdfunding investment will still maintain its value, or grow in value, 20 percent of the time. Thats a nightmare for most investors, and a nightmare for the crowdfunding industry. But compared to the lottery? Its a gold mine. More money than it seems The lottery may still appear benign compared to crowdfunding, because most tickets cost only one or two dollars. And the SEC is concerned about people who dont have a lot of money losing thousands to crowdfunding scams. But the low price of lottery tickets is illusory.
visit http://www.statesman.com/feed/business/personal-finance/love-powerball-try-crowdfunding/fWZB3/

Love Powerball? Try Crowdfunding

What can possibly go wrong? According to Crowdfund Capital Advisors (CCA) principal and co-founder Jason Best,The bottom line in all of this is the importance of education for both investors and entrepreneurs. To that end, CCA has created an educational resource called Success With Crowdfunding for entrepreneurs and investors to use. Swart notes several interesting takeaways from the proposed rules, as follows: First, intermediaries will be able to collect commissions. The rules are silent about enforcing a broker-dealer requirement. This is significant in that as written, the plan allows FINRA (the Financial Industry Regulatory Authority, which operates as an SRO, or Self-Regulatory Organization) to craft rules for its members for the protection of investors, but does not impose SEC-driven requirements on the crowdfunding platforms to become broker dealers themselves. Second, the rules lay out a framework for the paying of commissions to people promoting the deals. This language supports a broader use or marketing and promotion agents in the equity investment arena than is currently allowed.
visit http://www.forbes.com/sites/cherylsnappconner/2013/10/24/sec-attempts-balance-in-equity-crowdfunding-plan/

Danae Ringelmann: Crowdfunding Unleashes A Different Segment Of The Economy

Crowdfunding: Soon You Can Make Profits (And Losses) Like The Big Boys

Its easy to think of equity crowdfunding as a way for Joe or Jane Investor to get in on the next big tech startup. But we believe it could also unleash a different segment of our economy: the long tail of local small businesses and franchises that are too small for pro investors to spend time on. We see indications of this on Indiegogo already. The amount of money pledged to small business campaigns on our perks-based platform has risen by more than 200% over the past year, and has helped restaurants, boutiques, massage parlors, theaters, gyms, bookstores, hobby businesses, and more. (Campaignersare charged a 4% fee of the total amount raised if the target is met, and 9% of the total amount if the target is not met. ) Read what other mentors say about crowdfunding. Even the smartest and most hooked-in investment professionals strike out with most of the startups in their portfolios.But capitalizing a public-facing business through crowdfunding has the potential to lower investment risk for both issuer and investor because crowd patronage offers market validation and loyalty advantages that traditional funding mechanisms cant provide. We see that perks-based funding already generates strong loyalties, and by adding financial ownership to emotional ownership, crowd investing might amplify these effects.
visit http://blogs.wsj.com/accelerators/2013/11/26/danae-ringelmann-crowdfunding-unleashes-a-different-segment-of-the-economy/

Can crowdfunding help medical research?

In the wake of the horror stories of the 1920s, protecting the small investor from themselves made sense and was an important part of the Securities Act of 1933. This was achieved, firstly by requiring companies that were offering shares to the general public to register and disclose pertinent information, and secondly by restricting who could invest in companies before that transparent process came into play. Accredited investors were those deemed wealthy or wise enough to take the risk of investing in startups. The qualifications have been amended multiple times over the years, but basically it meant those deemed wealthy enough to survive a bad investment or wise enough to spot one.
visit http://www.nasdaq.com/article/crowdfunding-soon-you-can-make-profits-and-losses-like-the-big-boys-cm306655

Love Powerball? Try Crowdfunding

The average kickstarter pledge is $71.41. So even if you limit your consideration of kickstarter to those who actually make pledges through the site, youve got much less money at risk here, per person, than in the lottery. Meanwhile, despite the fact that virtually everyone, rich or poor, loses money on the lottery, most states enthusiastically support their lotteries. They don’t put up barriers to make it harder to play. And lottery players certainly dont have to show that they understand the risks or that they have money to burn: in most states, they just have to be 18. This isnt to say that we should outlaw the lottery or that we should eliminate all regulations on crowdfunding. But crowdfunding doesnt need to be nearly as scary as were making it out to be. Its already underway in Great Britain, where investors actually get a generous series of tax breaks in return for taking a risk and helping to encourage entrepreneurship.
visit http://www.statesman.com/feed/business/personal-finance/love-powerball-try-crowdfunding/fWZDz/

Czarnota and a group of doctors and researchers from Sunnybrook, Ryerson and MaRS Innovation are hoping crowdfunding is the solution. There are just eight days left of the two-month-long campaign to raise more than half of the $96,987 needed to launch an additional trial. The goal is to eventually raise a total of $687,950 to launch trials at three world-leading cancer centres: the MD Anderson Cancer Center in Texas, London Health Sciences Centre in London, Ont. and Princess Margaret Hospital in Toronto.
visit http://www.thestar.com/news/gta/2013/11/27/can_crowdfunding_help_medical_research.html

Inside One Man’s Attempt To Crowdfund Assassination

SEC’s Crowdfunding Proposals: Overview by Seyfarth Shaw

The site is the work of a self-proclaimed “crypto-anarchist” who goes by the alias Kuwabatake Sanjuro, and he gave an email interview to Andy Greenberg at Forbes . Sanjuro’s goal is to “destroy all governments, everywhere,” by making public office too dangerous to hold. He says he was pushed into action by the Edward Snowden leaks.
visit http://www.newser.com/story/177789/inside-one-mans-attempt-to-crowdfund-assassination.html

Crowdfund This! Vonnegut! Ebert! Unicorn Barbarian! Garbage Pail Kids http://abcnews.go.com/News/ And More!

These proposed regulations are now accepting comments on the SEC web site . While these regulations may be altered and were only recently released, the Seyfarth Shaw presentation is an excellent legal overview of the Title III regulatory environment as it stands today. Anyone interested in a detailed interpretation regarding crowdfunding should watch thevideo presentation below. The topics covered are: Primary Participants (Issuers, Investors and Intermediaries) Disclosure Requirements Bank Secrecy Act Requirements and Fraud Prevention Liability
visit http://www.crowdfundinsider.com/2013/11/27121-secs-crowdfunding-proposals-overview-seyfarth-shaw/

CrowdFund Zoom – Crowdfunding and Kickstarter Promotion Service

EST November 24, 2013 A British engineer came up with a solution to his heart problem. (Photo: ThinkStock) SHARE 67 CONNECT 60 TWEET 3 COMMENTEMAILMORE A heart problem put a British engineer’s life at risk for decades but presented with surgery options, he was “unimpressed.” So Tal Golesworthy, now 57, decided to take matters into his own hands, and the successful procedure he came up with has now helped more than 40 others, the BBC reports. Marfan syndrome can cause the aorta to slowly enlarge, putting it in danger of bursting. The traditional surgery sometimes requires metal valves to be placed inside the heart, which in turn requires a lifetime of blood-thinning meds; those can pose a serious risk if the patient falls. “I didn’t want to have to live my life in a cotton-wool cocoon,” Golesworthy says. NEWSER: Inside one man’s attempt to crowdfund assassination He looked at the issue as if it were a gardening problem: “If the hosepipe is bulging, I must get some insulation tape and wrap it round the outside of the hosepipe to stop it bulging. It’s that crude and simple, and we have all done it in our gardens.” He got help from a team of experts, who spent three years coming up with a mesh sleeve to wrap around the aorta. That made for simpler surgery that didn’t require blood-thinning medication. The procedure was performed in 2004, his aorta still hasn’t expanded.
visit http://www.usatoday.com/story/news/world/2013/11/24/newser-heart-problem-engineer/3690975/

Garbage Pail Kids And More! Todd Brown , Founder and Editor What’s that? You have more money than you know what to do with and you want to spend some of it to support an independent film project? Well, you’ve come to the right place!
visit http://twitchfilm.com/2013/11/crowdfund-this-vonnegut-ebert-unicorn-barbarian-garbage-pail-kids-and-more-gallery.html

Engineer saved own heart — using gardening trick

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With the use of Social Media Promotion, Crowdfunding Tips, and Consulting Services. CrowdFund Zoom is a crowdfunding promotion service that promotes Kickstarter, Inidegogo, and other crowdfunding projects by using Social Media Promotion, Press Releases, and Consulting Services. The website has helped many projects reach their goals with a very high success rate. When you use our service we will treat your project like its our own. Our team of experts have had their own successful Kickstarter projects, so they know exactly what is needed to promote a project within its project duration. We provide two packages that will fit your needs and budget.
visit http://www.pr-inside.com/crowdfund-zoom-crowdfunding-and-r3863274.htm

Crowdfund Your Assassination – If You’ve Got The Bitcoin

And now, thanks to one pseudo-samurai, you can buy murder and anarchy too. Kuwabatake Sanjuro introduced the Assassination Market to Forbes, which described the website as a kind of Kickstarter for political assassinations in a Monday report. The website lets users make anonymous contributions to bounties on government officials, which so far include National Security Agency Director General Keith Alexander at 10 bitcoins, President Barack Obama with 40 bitcoins, and bitcoin public enemy No. resource 1: Federal Reserve Chair Ben Bernanke, for 124.14 bitcoins, or $75,000. Bernanke has expressed the need to regulate digital currency since its emerging popularity as a viable form of alternative currency a sentiment that has enraged many of its supporters. According to Sanjuro, who lifted his alias from the famous samurai film Yojimbo, the would-be assassin just has to prove they did the deed to collect the bounty. Thanks to this system, a world without wars, dragnet panopticon-style surveillance, nuclear weapons, armies, repression, money manipulation, and limits to trade is firmly within our grasp for but a few bitcoins per person, Sanjuro wrote in an email to Forbes. I also believe that as soon as a few politicians gets offed and they realize theyve lost the war on privacy, the killings can stop and we can transition to a phase of peace, privacy and laissez-faire, Sanjuro said. The self-described anarchist, who plans to keep 1 percent of bounties as a commission for his services, said he was motivated to launch his crowdfunded killers hub after the widespread NSA spying came to light earlier this summer.
visit http://dailycaller.com/2013/11/19/crowdfund-your-assassination-if-youve-got-the-bitcoin/

Crowdfunding: A Primer

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Between the book and the funding you will be much more of an expert. You will have extended your network significantly. You will have seen things that you like and do not like and…you will be in a position to do your own project.
visit http://www.examiner.com/article/crowdfunding-a-primer

Realty Mogul Goes International, Speaking at Montreal Crowdfunding Summit

Investor Qualifications: Under the proposed rules, investors (who may be unaccredited) are only permitted to invest: $2,000 or 5% of annual income or net worth, whichever is greater, if both annual income and net worth are less than $100,000; and 10% of annual income or net worth, whichever is greater (capped at $100,000 in a 12-month period), if either annual income or net worth is equal to or more than $100,000. Both thresholds apply to individuals that cannot satisfy the requirements for accredited investor status, which requires either (i) $200,000 of annual income or (ii) over $1 million in net worth, excluding primary residence.A In the traditional private offering regime, there are no investing limitations for accredited investors Company Requirements: Under the proposed rules, a company could raise a maximum of $1 million in a 12-month period through Section 4(a)(6) crowdfunding offerings.A In order to comply with the proposed rules, a company would need to disclose information (i) to the SEC (on a new Form C) and (ii) to its investors through its online offering documents.A The new disclosure requirements include, but are not limited to, the following: Information about officers, directors and holders of 20% or more of company securities; Description of the business and financial condition of the company; Price of securities being offered, the target offering amount, the offering deadline, whether the company would accept investments above target offering amount, and progress updates; Details about transactions entered into with directors, officers or major shareholders; and The following financial informationA Offerings of less than $100,000 a latest yearas tax returns Offerings of $100,000 to $500,000 a financial statements reviewed by independent public accountant; and Offerings of more than $500,000 a audited financial statements. In addition, a company would need to file an annual report with the SEC and provide such reports to investors upon filing. Portal Requirements: All crowdfunding portals would need to be an SEC-registered intermediary, namely either (i) a traditional broker-dealer or (ii) a registered crowdfunding portal, a new type of SEC registrant conceived for the purpose of such offerings. Under the proposed rules, such intermediaries would be required to: Provide educational materials to investors; Take measures to reduce the risk of fraud; Make issuer information available to investors; and Provide communication and comment channels on their platform. Under the proposed rules, such intermediaries would be prohibited from: Offering investment advice or making recommendations; Soliciting purchases, sales or offers to buy the securities offered or displayed; Compensating individuals for soliciting certain securities; and Holding, possessing, or handling investor funds or securities. The proposed rules contain a safe harbor to avoid inadvertent violations of the prohibition against offering of investment advice, establishing a presumption of compliance when portals apply certain objective criteria in determining which offerings to facilitate. Conclusion The proposed rules will be open for public comment for 90 days, at the close of which the SEC will take comments under review and determine whether, and in what form, to adopt the proposed rules.A Regardless of the final product (which could be 6 months or more away), this process provides issuers, investors and their advisors with the first glimpse at how the SEC will implement the Congressional mandate to (i) provide start-ups with new sources of capital and (ii) open equity investing in private companies to the pool of the millions of non-accredited individuals currently without access to private securities markets. The challenge before the SEC is large.A The SEC has long predicated its anti-fraud regulatory regime on the principle that only accredited or otherwise sophisticated investors are either qualified to assess or can afford to bear the risk associated with the securities of non-public companies.A This philosophy is potentially poised for disruption by Title III of the JOBS Act, forcing the SEC to reconsider how it balances the risk of fraud against the facilitation of access to markets, an exercise in which the SEC has historically erred on the side of caution.
visit http://www.jdsupra.com/legalnews/sec-proposes-crowdfunding-rules-61901/

SEC Proposes “Crowdfunding” Rules

19, 2013 BEVERLY HILLS, Calif., Nov. 19, 2013 /PRNewswire-iReach/ — Realty Mogul announced today that its founder and CEO, Jilliene Helman, will be a highlighted speaker at the Canadian Crowdfunding Summit “FINANSO 2013” in Montreal, Quebec on Thursday, November 21. Her lunch presentation, “Real Estate Crowdfunding as a Tool for Social and Economic Development,” will be part of a larger conference highlighting crowdfunding solutions for non-profits, NGOs, and businesses, with these issues to be discussed at an international level. (Photo: http://photos.prnewswire.com/prnh/20131119/MN19692 ) “It’s exciting to participate in a crowdfunding conference that is so decidedly international in scope,” said Ms. Helman. “The summit will feature leading experts from the United Kingdom and France as well as the U.S. and Canada, and each will provide a unique perspective on how the crowdfunding phenomenon is playing out across the world. We are particularly honored to have been chosen to participate since the FINANSO Summit will be one of the first major conferences of its type in Canada.” Realty Mogul is a leading real estate crowdfunding company for accredited investors that recently passed over $8 million in funded transactions.
visit http://money.msn.com/business-news/article.aspx?feed=PR&Date=20131119&ID=17124696

Is Equity Crowdfunding Legal In British Columbia?

Milwaukee entrepreneurs welcome federal equity crowdfunding rules

Andy Nunemaker, a Milwaukee serial entrepreneur who currently is CEO of startup Dynamis Software Corp. in West Allis.

The concept has been used by charities and by some companies who offer product pre-sales. The US is considering adopting a new crowdfunding exemption that would allow companies to sell securities to anyone over the internet through either a registered broker-deal or a registered funding portal. The SEC still needs to develop rules to support the exemption. The BCSC has considered the US crowdfunding exemption and various initiatives undertaken by other Canadian regulators. In BC, we have a number of exemptions that allow small businesses to raise capital from their family, friends and communities in short, to do crowdfunding.
visit http://www.crowdfundinsider.com/2013/11/26684-equity-crowdfunding-legal-british-columbia/

RetireAmerica.com announces the launch of the first capital protected equity crowdfunding portal

Its just how is it going to play out. Dan Steininger , president and co-founder of BizStarts Milwaukee Inc., called equity crowdfunding another tool in the toolbox for early-stage firms to secure investments. I think itll start some deals, but there will be plenty of scams as well, Steininger said during the panel discussion.
visit http://www.bizjournals.com/milwaukee/blog/2013/11/milwaukee-entrepreneurs-welcome.html

14, 2013 /PRNewswire/ — RetireAmerica.com announced today the launch of its web-based capital protected equity crowdfunding portal. The launch is in beta form and is intended to become fully functional by year-end. Empowering Entrepreneurs, Protecting Investors, Creating Jobs RetireAmerica.com ( http://www.retireamerica.com ) announced today the launch of its crowdfunding portal which will offer investors the opportunity to make equity investments in early stage companies through its unique financing structure that combines capital protection with an equity investment. Initially, investments on the platform will be limited to accredited investors, but will be expanded to non-accredited eligible investors following full implementation of Title III of the JOBS Act. Steve Colmar, RetireAmerica.com’s CEO stated, “Everyone knows company website that early stage investing is risky. Our mission has been to develop a product that opens up investment opportunities in early stage companies to investors who want to minimize their risk of loss. And now the crowdfunding revolution has arrived, making equity investments in early-stage companies available to countless new investors through groundbreaking social media outlets or portals. But despite its transformational influence on capital markets, crowdfunding hasn’t solved how to reduce the risk of loss of capital in early stage investments. The RetireAmerica.com product addresses this problem through our unique capital protected structure.
visit http://finance.yahoo.com/news/retireamerica-com-announces-launch-first-133000722.html

How To Successfully Crowdfund For Your Nonprofit

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Like any form of fundraising, it’s hard. It’s no silver bullet, but if executed correctly, it can (and should) be far more cost-effective than your current fundraising methods.
visit http://www.huffingtonpost.com/ben-lamson/how-to-successfully-crowd_b_4274202.html

Crowdfunding gets entrepreneurs knocking on wealth manager’s door

But Alexis is a really hard worker and for her this was not easy at all. Felix said she warmed to the idea when Santana told her to think of it as asking for an investment in my future, not charity. Many donations came from friends Felix made at the Horace Mann School, a prestigious private college preparatory school in the affluent Riverdale section of the Bronx she was able to attend due to good grades and generous financial aid. Others came from alumni of the high school and BU, and from strangers. One $5 donation carried this message: We dont know each other, but I was touched by your courage, tenacity, and perseverance. To hear people say they were inspired by me was just amazing, Felix said this week in an interview. As of Tuesday , 25 days http://www.usatoday.com/story/money/personalfinance/2013/11/15/stupid-things-finance-people-say/3582727/ after launching the effort, Felix had received 203 donations totaling $8,856, according to the website. She said she is confident the investments in her will pay off.
visit http://www.bostonglobe.com/metro/2013/11/13/crowdfunding-pays-off-for-student/OCbSkZLlEkQBORcR29qx6J/story.html

‘Crowdfunding’ effort pays off for BU student

But then again, he never before had offered a group of entrepreneurs a crowdsourcing platform that could connect them to thousands of accredited investors looking to place capital with what he hopes will be the next Facebook or Twitter. A partner in FMB Wealth Management, Mr. Blindbury has signed on to offer entrepreneurs a crowdfunding platform developed by digital marketing firm My New Financial Advisor, which recently joined with crowdfunding provider InvestedIn. What makes the platform unique is the access it provides to big-money accredited investors whose deep pockets can really make a difference for entrepreneurial startups. Blindbury for more information at the Nov. 7 Starting Up Santa Barbara event for local entrepreneurs. As an investment adviser walking into a startup event, I would never in a million years have expected to get the response that I got, he said. I was there until 1 a.m., and I was meeting all these award-winning, fascinating entrepreneurs.
visit http://www.investmentnews.com/article/20131115/FREE/131119921

Equity Crowdfunding Could Help Australian Firms Fill Capital Gap

SEC Finally Moves On Equity Crowdfunding, Phase 1

And compared to existing crowdfunding, it offers more upside to investors who at present benefit solely from owning a new product at a discounted price. Australias success rate in funding and commercialising innovation lags behind most other advanced economies. Addressing the lack of funding for start-ups is critical because it is these firms that drive the economic transformation needed to respond to new challenges and requirements of a dynamic global economy. Australian startups have traditionally been forced to rely on three main avenues to raise equity capital. The first avenue is a public listing.
visit http://theconversation.com/equity-crowdfunding-could-help-australian-firms-fill-capital-gap-19543

Equity Crowdfunding Has Arrived: 5 Things to Know About the Future of Raising Money Online

How Bob Evans Ended Mia Farrow’s Marriage to Frank Sinatra

To find out, NerdWallet turned to some experts. Since equity crowdfunding is a new phenomenon, Georgetown University Law Professor James Angel believes the creation of secondary markets for crowdfunded shares is essential: One of the big challenges is What will the exit look like for investors? The secondary market for the crowdfunded shares will be very thin, so it will be hard for investors to exit when they desire. I suspect that additional funding rounds will provide some exit opportunities for firms that do another round of funding.
visit http://www.nerdwallet.com/blog/investing/2013/equity-crowdfunding-obstacles/

Expert FAQ: What Should Investors Know about Equity Crowdfunding?

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Heres a list of the Top 10 Crowdfunding Sites for Funding . This covers both Rewards and Equity based crowdfunding. Many companies looking to grow in the equity crowdfunding space are taking the approach of picking a niche and looking to corner it. A few top level notables in the marker are: SoMoLend: Debt lending for small businesses Crowdfunder.com: Local community strategy via CROWDFUNDx , Startups & Social Enterprises CircleUp: Consumer products, $1M or more, Accredited Investors only AngelList: Silicon Valley investor-centric Startups AlumniFunder: Bringing alumnists together to back college entrepreneurs Its important to keep in mind that equity crowdfunding is not another internet market niche, its an entire new Capital Market, and will create a new investor class.
visit http://www.forbes.com/sites/chancebarnett/2013/07/19/sec-finally-moves-on-equity-crowdfunding-phase-1/

Kickstarter and Indiegogo are household names thanks to their role in shepherding the crowdfunding revolution, yet neither of them are on-board for brokering investment in crowdfunding projects at least not yet. Several other smaller players have declined to participate as well, leavinga glaring hole in the market. At least 1,6000 different companies have registered under the JOBS Act hoping to serve as an intermediary between investors and crowdfunding campaigns. Also read: Director David Gordon Green: How Kickstarter, VOD Can Keep Indie Comedy Quirky While the SEC has laid out rules about fraud and misbehavior, filmmakers and potential investors should still be wary. The issue right now is brokers and dealers, Cinetic Medias Ross Fremer told TheWrap . Who will the intermediaries be? There have been several lawsuits already over crowdfunding, and bringing investment into the equation only increases the likelihood. One prominent crowdfunding company declined to participate in this story for that reason, fearful that shady dealers would undermine this latest push.
visit http://www.thewrap.com/equity-crowdfunding-has-arrived-5-things-to-know-about-future-raising-money

Can Crowdfunding Give The Private Space Race A Boost?

And it’s that community that these companies rely on, according to Laine, who admitted that he was startled by the crowdfunding focus on money. “Yes, it’s a factor,” he said. “But the thing that’s most important was contacts, relationships, and the global community.” Some of LiftPort’s initial supporters later became members of the board of advisers.
visit http://www.pcmag.com/article2/0,2817,2426942,00.asp

Equity Crowdfunding Edges Closer to Implementation

Guarantee that investors do not violate their individual investment limits. This is a particularly difficult requirement of the law to enforce and the SEC may not impose it. Not pay finders or affiliates for bringing in investors. Prohibit their own directors and officers from investing in companies issuing securities on their platforms. Intermediaries cannot offer investment advice or make recommendations about funding individual crowdfunding efforts, nor can they solicit purchases of securities offered on their websites.
visit http://www.practicalecommerce.com/articles/60741-Equity-Crowdfunding-Edges-Closer-to-Implementation

3 Ways To Make Equity Crowdfunding Safer | Inc.com

Mann Institute for Biomedical Engineering at the University of Southern California, Michael Greenberg from Scale Software, and David Harvilicz from WhenYouWish. Ms. Gosset gave an overview of and lessons learned from three case studies of bioscience projects that raised donations using crowdfunding as the fundraiser mechanism. David Harvilicz highlighted the mission of WhenYouWish, a crowdfunding site that offers unique features amiable to supporting campaigns for medical solutions. George Colindres presented the key elements of the new SECs recommended rulings on equity crowdfunding that emerged from the JOBS Act. David Harvilicz and Michael Greenberg explored the merits and limitations of this new way to access capital. The Southern California Biomedical Council (SoCalBio) is the trade association of the life-science industry in the Greater Los Angeles region. SoCalBio represents and promotes the medical device and biotechnology industries in Los Angeles, Orange County, the Inland Empire and communities located in the Gold Coast of Ventura and Santa Barbara Counties for job creation and economic development. Contact Information Alfred Mann Institute at the University of Southern California Nathalie Gosset Contact http://ami.usc.edu/
visit http://bit.ly/1bw29I3

Investors who make less than $100,000 ayear can invest up to $2,000 every 12 months. Investors who make more than $100,000 can invest up to $100,000 every 12 months. Companies need to disclose financial reports; tax returns; lists of officers, directors, and owners; and price of securities offered with target amount and deadline. The proposed rules are supposed to both give entrepreneurs more flexibility in their fundraising efforts and protect investors from potential scams. But will they accomplish both tasks? Not quite, say some Wharton management professors in an article on Knowledge@Wharton , the University of Pennsylvania’s business school http://www.youtube.com/ blog. As the proposed regulations undergo a 90-day public comment period, the professors offer three suggestions to make equity crowdfunding more effective–and safer–for everyone involved. Prevent ‘Bad Diversification.’ Before the JOBS Act, only “accredited investors” were able to invest in start-ups, but now anyone who wants to get in on the action can invest and receive a stake in that company. Although this will help entrepreneurs, Wharton finance professor Luke Taylor says inexperienced investors don’t have the skills to decifer between a good company and a bad company.
visit http://ow.ly/279qod