Securities-Based Crowdfunding Opens Under GATE-Crowdfunder Alliance

PRESS RELEASE

SEC paves way for GATE Global Impact’s and Crowdfunder’s crowdfunding by relaxing general solicitation rule for accredited investors

 

NEW YORK, Aug. 29, 2012 /PRNewswire/ — In response to today’s ruling by the Securities Exchange Commission (SEC) to relax general solicitation for accredited investors under the Sunshine Act, GATE Global Impact has announced a strategic alliance with online platform Crowdfunder to open securities-based crowdfunding between qualified U.S. business owners and accredited investors. The alliance makes investor protection paramount by utilizing the regulatory framework of GATE’s broker dealer division – GATE US, Member FINRA, SIPC – to oversee and facilitate all securities-based transactions across Crowdfunder’s community of 9,000 investors and entrepreneurs and 1,100 registered companies. Continue reading…

Will Crowdfunding Ignite Investing For Profits And Purpose?

Re-posted from Forbes
By Chance Barnett, CEO of crowdfunder

Can you earn a healthy return on your investment and help change the world at the same time?

If you haven’t been paying attention, there are already thousands of entrepreneurs and investors betting that you can, with a multibillion-dollar market to show for it.

The companies and investors in this market aim to create “impact” beyond mere profit – whether that be social or environmental impact. But unlike non-profits, revenues and profits sustain these companies.

These for-profit companies, often called “social enterprises,” are becoming more and more common. Among investors, they’re called “impact investments.” Continue reading…

Crowdfunding 101: The Basics

Re-posted from Forbes
By Chance Barnett, CEO of crowdfunder

Imagine an eBay-type website for investing and donating where you could login and browse causes and businesses, and find an “investment” that appeals to you.

You could contribute a small amount, become part of a community, and over time see the impact of your donation or investment.

Crowdfunding, at its essence, is exactly that — connecting “crowds” directly to those who need funds.

Crowdfunding websites offer a hassle-free way to find, vet, and support companies, causes and organizations, and contribute or invest directly without a middleman.

Crowdfunding makes investing more personal and impactful – giving you direct access to information and opportunities that were once the exclusive domain of people “in the know” or the privileged one percent of accredited investors. Continue reading…

Will Crowdfunding For Businesses Succeed Or Fail?

Re-posted from Forbes
By Chance Barnett, CEO of crowdfunder

A revolution in early stage finance is about to take place. But will the revolution succeed?

Thanks to the passage of the JOBS Act, a new market is being born that will revolutionize how early stage investing and fundraising works. It’s called equity-based crowdfunding.

For the first time in our lifetime, every American will have access to investing in startups and small businesses. Amy Cortese, Author of “Locavesting”, put it this way:

“If Americans shifted just 1% of the $30 trillion they hold in long-term investments to small businesses, it would amount to more than 10 times the venture capital invested in all of 2011.”

That’s not a game-changer. That’s a revolution. Continue reading…

CROWDSTART LV Brings a $500,000 Investment Opportunity to the Las Vegas Startup Community

Right now startups are receiving funding on Crowdfunder by winning the votes and support of the crowd. You can participate and help choose the startups that get funded, or be one of the startups that could win funding, by being on Crowdfunder today.

CROWDSTART LA, the first crowdsourced startup contest, just finished off with a successful live pitch event where one of the ten finalists – Divshot, a former Startup Weekend born startup – took home a $25,000 investment prize.

Up next, Crowdfunder has partnered with the Vegas Tech Fund to bring CROWDSTART LV – a startup contest just like CROWDSTART LA, where startups create profiles on Crowdfunder and attract supporters/votes to compete for a chance at pitching VCs and Angels at a live pitch event. The Vegas Tech Fund is putting a $500,000 investment opportunity for the winner of the contest. Read more here. Continue reading…

How Soon Can You Crowdfund Your Business?

Important Updates on Crowdfunding Laws & SEC Rulings

We’ve got some inside scoop for you on crowdfunding laws and the timelines.

As a quick reminder… Congress passed the JOBS Act to much fanfare, and President Obama signed it into law on April 5th. Many people thought that the battle was won and that business crowdfunding was legal.

Well… not exactly.

Business crowdfunding (equity crowdfunding) is what we call “pre-legal.”

The SEC was given a 270 day period to give Rulings on crowdfunding- scheduled for December 31st. Since then, and over the past few weeks in particular, there has been quite a bit in the press about the slow pace with which it appears SEC and FINRA, the two agencies in charge of creating the regulations for the crowdfunding industry, are embracing their Congressional mandate to do so. Continue reading…

Crowdfunder Has Something Big Brewing with Its Vegas Contest

WHILE THE WORLD WAITS FOR THE JOBS ACT TO TAKE EFFECT … CROWDFUNDER, STARTUP WEEKEND AND VEGAS TECH FUND TEAM UP TO EDUCATE ENTREPRENEURS AND BRING STARTUP COMPETITIONS ONLINE WITH $500,000 INVESTMENT OPPORTUNITY

July 3, 2012 – Los Angeles, CA – Crowdfunder has something big brewing with its Vegas Contest. The collaborative funding platform is teaming up with Vegas Tech Fund to put a $500,000 investment opportunity in the hands of an entrepreneur at Las Vegas Startup Weekend, July 13-15.
Investors are galvanizing around Las Vegas as a hotbed for fostering entrepreneurship and community, putting their money where there mouths are with $100M combined investment between Downtown Project + Vegas Tech Fund. Continue reading…

CROWDSTART LA: Crowdsourced Startup Contest

10 Startups from Crowdfunder To Pitch The LA Startup Community & Compete For $25,000 in Funding

On May 22nd we opened up Crowdfunder to the public and launched the first crowdsourced startup contest, CROWDSTART LA.

Just a few weeks after launching, over 600 companies have signed up to compete by creating a Company Profile on crowdfunder. The crowd has spoken and selected the startup finalists who will compete in the live pitch event portion of the contest.

Today it’s our pleasure to announce the 10 top companies who will be presenting on July 10th to the community. 5 of these companies received the most votes from the crowd, while the other 5 are the Judge selections.

Continue reading…

The Benefits of Incorporating Your Startup

Incorporating or forming a limited liability company (LLC) will secure many advantages for your startup, not the least of which is the ability to use Crowdfunder.com and attract investors. With only a few downsides (additional taxes), early incorporation is a smart step for your business’ longer term viability and growth.

Here’s why you should incorporate:

Startups need to incorporate in order to raise funds from investors on crowdfunder.com or elsewhere. If your business isn’t separate from your personal financial affairs, investors will not give you startup money. Instead, opt to run your company out of an entity like a corporation or an LLC. These entities can be split into many pieces, called shares or membership interests, which can be sold to investors who provide the business with capital. In return, the investors own a fraction of the business and have certain rights, usually including a share of any dividends declared.

Continue reading…

What is crowdfunding?

For a quick overview on how crowdfunding for businesses will work and the history behind the JOBS Act and the business/equity crowdfunding market, see our Business Crowdfunding Infographic

Crowdfunding occurs when many donors collectively pool their small contributions together to raise a larger sum of money for a single project or company.

Any entrepreneur can post his or her project online and have access to millions of potential investors. Crowdfunding, as opposed to most other capital markets, does not require a bank or underwriter to facilitate the process.

A crowdfunded project can be of creative nature, a charitable cause, or in the case of crowdfunder, a business venture that offers contribution, equity or revenue sharing to those who contribute funds.
Continue reading…