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…

Jumpstarting Economic Growth By Fixing Our University Research System’s “Valley of Death”

For decades, America’s economic success has been driven by an engine of innovation that periodically creates new industries and companies that change the world. The JOBS (Jumpstart Our Business Startups) Act was passed to make it easier for startups to get off the ground and access early-stage investments. Small businesses are the growth engine of the US economy, and by helping them thrive, the JOBS Act will undoubtedly create growth for the US economy for years to come.

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The House Passes Fixes To Equity Crowdfunding Laws

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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.

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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.

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SEC Democratizes Equity Crowdfunding With JOBS Act Title IV

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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

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