The Surprising State of Equity Crowdfunding Post-JOBS Act

From savings to banking to investing… finance is moving online. With this, we’re seeing the disruption of venture capital brought about by new laws that may change the game for how entrepreneurs can raise funding and who can invest.

As the CEO of equity investment platform Crowdfunder.com, I was part of a small leadership group engaged on JOBS Act legislation in Washington D.C. and helped bring about new equity crowdfunding laws in the U.S.

It’s been over three years since the first portion of US equity crowdfunding laws went into effect in September of 2013 under Title II of the JOBS Act, opening up equity crowdfunding with accredited investors.

And now three years since the passage of Title II, the two remaining equity crowdfunding portions of the JOBS Act have finally come into effect (Title III and Title IV), bringing with them the long-awaited non-accredited investor rulings.

Today, everyday citizens can finally invest in early stage startups alongside angels and VCs. But not so fast… Continue reading…

The House Passes Fixes To Equity Crowdfunding Laws

Read on Forbes

In the more than two years since the passage of Title II of the JOBS Act, equity crowdfunding with accredited investors has rapidly grown, allowing startups to easily seek funding online with little added costs or hassles.

As the CEO of Crowdfunder, a leading equity crowdfunding platform + venture fund, I see firsthand how the ability to reach thousands of Institutional and individual angel investors online through equity crowdfunding is transforming startup fundraising and early stage venture capital.

Unfortunately, the highly anticipated “boom” of access to non-accredited investors, namely regulated under Title III, is a bit of bust. I wrote previously about howTitle III Crowdfunding Will Disappoint Entrepreneurs.

Continue reading…

NEWS: SEC Proposes New Rules For Title III Equity Crowdfunding

Today the SEC passed rules to implement Title III of the JOBS Act marking the start of true equity crowdfunding including non-accredited investors.

This is a momentous shift as it will be the first time in 80 years that everyday citizens will be able to invest in early stage companies.

This will have massive implications for both the entrepreneur and investor alike as it will open up a tremendous amount of new capital to startups while allowing investors to further diversify their portfolio.

Title III is slated to go live in 90 days and here’s what to expect.

Continue reading…

SEC Democratizes Equity Crowdfunding With JOBS Act Title IV

Read on Forbes

The SEC has, after three long years, finally moved on rulings that allow everyday citizens (non-accredited investors) to participate in equity crowdfunding and investment in private startups and small businesses.

The long awaited promise of democratizing investment in startups & small businesses in the U.S. through equity crowdfunding laws is about to be fulfilled. These new rulings come under Title IV of the JOBS Act and will done initially through what are called Regulation A+ investment offerings.

In this post I’ll share a brief history of equity crowdfunding laws including an infographic, details on how the new Title IV / Regulation A+ offerings that include non-accredited investors work, and the impact these changes will bring to the landscape of private investing and fundraising.

View History of Crowdfunding Infographic

Continue reading…

10 Top Equity Crowdfunding Campaigns From 2014

Read on Forbes

It was a banner year of growth for the crowdfunding industry in 2014 as several record-setting rewards-based and equity-based crowdfunding campaigns took place.

Each year the bar continues to rise, as the overall crowdfunding industry is estimated to grow to nearly $10.9 Billion in total funding in 2015, up from $1.5 billion in 2011.

This post highlights 10 of the top equity crowdfunding campaigns that raised equity funding for startups in 2014. For clarity, this list does not include rewards-crowdfunding campaigns where participants don’t invest, but rather donate or pre-purchase products or experiences on sites like Kickstarter and Indiegogo.

Continue reading…

Equity Crowdfunding: Myth and Reality

A Year-One Report Card on Title II of the JOBS Act

It’s been a little over a year now since Title II of the JOBS Act went into effect. The enactment of this legislation meant that for the first time since the Great Depression, start-up companies and small businesses could publicly advertise that they were seeking investment funds. With some of the SEC’s most cumbersome regulations relaxed, entrepreneurs could tweet about their fundraising efforts; they could promote them on Facebook or reach out through LinkedIn. Most importantly, entrepreneurs could connect with accredited investors on equity crowdfunding sites like Crowdfunder.com.

Continue reading…

Crowdfunder Raises $3.5M Series A To Expand Tech + Media Equity Crowdfunding

CROWDFUNDER.COM RAISES $3.5M SERIES A ROUND TO FURTHER ITS LEADERSHIP AS THE PLATFORM WHERE NOTABLE TECHNOLOGY + DIGITAL MEDIA COMPANIES RAISE EQUITY FROM EXPERIENCED INVESTORS AND THE CROWD

Crowdfunder raises $3.5M round on the heels of groundbreaking equity crowdfunding campaigns for top tech and digital media startups like GoCoin, Neil Young’s PonoMusic, Social Rewards and more.

LOS ANGELES, CA — (October 7, 2014) — Leading equity crowdfunding platform Crowdfunder.com has raised a Series A round of financing from a combination of VC funds, notable investors like Tim Draper, along with a crowd of individual accredited investors. Crowdfunder aimed to raise $2,500,000 in the round, but due to significant investor demand the round was opened up to additional investors and oversubscribed at $3,500,000.

Continue reading…

$2B Facebook Acquisition Raises Question: Is Equity Crowdfunding Better?

As seen on Forbes, by Chance Barnet, CEO at Crowdfunder

As CEO of Crowdfunder, I was invited on Fox Business News recently to talk about the recent $2 billion Facebook acquisition of Oculus Rift, a company that had previously been crowdfunded.

Fox and the media had caught wind of the growing Oculus Rift backlash from people who had donated to the $2 million Oculus Rift campaign on Kickstarter.

Those supporters/donators didn’t get any benefit from Facebook’s recent acquisition of Oculus Rift for $2 Billion. Yes, billion.

Had the $2.4 million that Oculus raised to launch the company been investment via an equity crowdfunding site like Crowdfunder.com, then it’s estimated that those backers would have gotten a 200x return on their investment.

Continue reading…

How General Solicitation Works

The JOBS Act legislation is changing the way small businesses and startups raise capital.  On September 23, Title II rulings of the JOBS Act will lift the ban on general solicitation, allowing startups to advertise they are fundraising and engage in investment crowdfunding in an open market for the first time in over 80 years.  

Private businesses were previously only able to solicit investments from investors with whom they had pre-established relationships with, making it very difficult for entrepreneurs that did not know any wealthy investors to successfully fundraise. Now with the lift on the ban of general solicitation, businesses that file in advance with the SEC their intention to generally solicit will be able to talk openly about their fundraising offerings and connect with accredited investors beyond their existing network, potentially meeting their fundraising goals more efficiently using online fundraising platforms like Crowdfunder.com.

Continue reading…

Webinar: How General Solicitation Works (Title II of the JOBS Act)

Take the first step toward fundraising. Create your free Crowdfunder Company Profile now.

Are you an Accredited Investor? You may get access to Deals on Crowdfunder today. Simply sign up and verify your accredited status. 

Webinar Details:

The JOBS Act legislation is changing the way small businesses and startups raise capital.  On September 23, the final rules enacted under Title II of theJOBS Act will lift the ban on general solicitation, allowing startups to advertise for the first time in over 80 years that they are fundraising .  

Continue reading…