Archive for June, 2016

Crowdfunding Survives a Crucial Legal Challenge Few Know About

Regulation A+ is the portion of the JOBS Act that allows a company to raise up to $50 million in new capital through an online “Mini-IPO.” It came roaring into the investment world a year ago with the promise of changing the way small businesses get funded. The law allows companies to economically raise funds […]

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4 Smart Ways to Get Investment for Your Startup

You might have a fantastic business idea that you have perfected in your head, but that won’t mean much if you do not have the proper funding to not only make your business happen but to also allow it to succeed. Since there are quite a few different ways that you can consider funding your startup, […]

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Can Equity Crowdfunding Save Capitalism?

In 2012 president Obama signed into law the “Jumpstart Our Business Startups Act,” commonly known as the JOBS Act. Embedded in the act are provisions allowing for the loosening of certain SEC regulations to allow for what activists call “equity crowdfunding.” Because it took several years for these provisions to go into effect (Title III […]

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Industry Responds to Victory Over States’ Attempt to Shut Down Reg A+

Yesterday the United States Court of Appeals, DC Circuit, denied a case challenging the Securities and Exchange Commission and their rules under Title IV of the JOBS Act, otherwise known as Reg A+. The enjoined case brought by the states of Montana and Massachusetts saw a ruling that rejected the argument that Reg A+ incorrectly […]

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A Closer Look at the Risks and Rewards of Crowdfunding

By Tim Maverick The long-awaited crowdfunding rules finally came into effect on May 15, 2016. Listed under Title III of the Jobs Act, these regulations are meant to put parameters in place for what has been, until now, an unprecedented and unpredictable marketplace. Crowdfunding allows start-up companies to raise seed capital – up to $1 […]

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5 REASONS TO USE EQUITY CROWDFUNDING TO RAISE CAPITAL FOR YOUR STARTUP

Equity crowdfunding (ECF) is a game-changing alternative finance model that enables startups and SMEs to efficiently raise equity finance from a broad and diversified group of investors. ECF platforms provide entrepreneurs with the technology and know-how to access untapped pools of capital so that they can remain focused on product development and growth. However, an […]

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JOBS Act Is Boon to Small Banks, But SEC Can Do More

By Neal Wise These can be nervous times for small, privately held banks. It’s acquire or be acquired. You need greater scale to keep up with regulatory costs. And a whole variety of factors limit growth. Thankfully, the Securities and Exchange Commission gave community banks and other small companies a rare bit of good news […]

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Equity crowdfunding is now legal, but don’t expect anything to change just yet

By T. Alexander Puutio Equity crowdfunding is now legal in the United States. Four years in the making, Title III of the Jumpstart Our Business Startups Act (JOBS) finally entered into force on May 16. Before this, the masses had access to only what amounts to donations-on-steroids provided by Kickstarter et al., with SEC-accredited investors calling Droit […]

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Weighing the Risks for the “Crowd” in Equity Crowdfunding

By Joe Green Now that the long awaited and much anticipated federal crowdfunding rules under Title III of the JOBS Act have become effective, startup companies can raise seed capital from everyday, non-accredited retail investors through online equity crowdfunding platforms. Many of these investors are excited to have finally the opportunity to invest in high-growth, early-stage […]

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