We’re Social!
Is Crowdfunding to Be Crowdless?
The JOBS Act has the potential to help entrepreneurs finance their small and emerging growth businesses through “crowdfunding,” but only if we get the costs right. In the year since the measure was signed into law, online technology platforms have continued to successfully disrupt the costs of fundraising, necessitating a reevaluation by the Securities and Exchange Commission of some components of the law before completing the regulations.
Study Shows Crowdfunding $$ Can Grow on Trees
EquityNet.com, a crowdfunding platform that enables entrepreneurs to raise money from accredited investors, just released findings from a six-year study of their transactions (1,000 completed deals) and the findings are very interesting. If you have considered raising money and wonder if your company is fundable and under what terms, read on.
*Consumer and business product/service companies are popular, accounting for over 40% of equity crowdfunding activity. These are industries previously underserved by traditional venture capital.
*More than half of the completed deals are businesses in the middle of the U.S., not the coasts. Net, you don’t have to be in the Alley (NY) or the Valley (CA) to get funded.
Roll with it: Funding a Startup from Your Retirement Accounts
An entire industry has been developing to support the emergence of equity crowdfunding and they are anxiously waiting for the baby to be born. In April of 2012, The JOBS Act was signed into law. One of the hallmarks of this legislation is equity-based crowdfunding—a new fundraising vehicle for small businesses to generate investment capital. When Congress turned this legislation over to The Securities and Exchange Commission (SEC) to complete the regulations there was a December 31, 2012 deadline for completion.
