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…

How Revl Reserved $4 Million on Crowdfunder

We recently chatted with Revl CEO Eric Sanchez to discuss his fundraising successes on Crowdfunder. Revl has reserved over $4.1M on Crowdfunder. With product scheduled to launch in April, Revl is on a clear trajectory to give GoPro a run for its money.

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Investing Basics: Deal Types

We believe investing in early-stage startups is very different than investing in public market opportunities. Besides the unique opportunities associated with startup investing, and the long term liquidation nature of your investments, startups use slightly different terminology with which you may not be familiar. Below is a sample of the most commonly used deal terms.

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Diversifying Your Startup Portfolio, Part II

In a previous post, we delved into the importance of diversification in a start-up portfolio. We looked at ‘The Babe Ruth Effect’ and the number of different positions that should be taken to properly diversify an early stage investment portfolio. Startup investors must be aware that they are going to encounter more losses than wins. Success of a portfolio is based on those few home runs, which drive the overall return. However, there is a degree of nuance and some pitfalls that are worth noting in order to diversify successfully.

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