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…

Investing Basics: Convertible Notes

A convertible note (also referred to as convertible debt) is a debt loan that converts to equity when a company reaches a certain milestone, usually the next round of equity financing. It is a common way for early-stage startups to fundraise.

Convertible notes are commonly used as it is less expensive for a company to fundraise using this method as legal costs for document creation are lower which is useful for smaller rounds of funding at earlier stages (before Series A).

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How Millennials Will Change The Face Of Finance & Investing

Millennials are not only the largest generation in U.S. history, they will also receive the greatest transfer of inherited wealth ever.

It’s also been observed that Millennials are changing how businesses operate through their unique preferences and behaviors surrounding spending, lifestyle, and finance.

Because of this, Millennials are poised to transform nearly every facet of the U.S. and global economy, and the Finance industry is about to experience tremendous change as it works to address the needs and preferences of this different customer.

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Diversifying your Startup Portfolio

Diversification is key to mitigating risk and maintaining a healthy startup portfolio. As media coverage is saturated with news of unicorns like Facebook and Alibaba leading to huge paydays for investors, it’s easy to look past the risk to the possible reward. But it’s important to remember that the majority of startups fail. According to performance analysis by the Kauffman Foundation, 52% of all venture exits are at a loss. How can you integrate diversification into your portfolio?

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