Four hundred days ago Friday, ordinary people won the right to invest in startups through the so-called “crowdfunding” provisions of the JOBS Act. But 125 days ago, federal securities regulators missed the deadline to explain how they will bring those rights into existence, and now it looks unlikely any crowdfunding will actually happen until the middle of next year. Read more…
Tampa-based ClickStartMe seeks piece of growing crowdfunding market
TAMPA — Worried about harmful chemicals in most deodorants, Amy Cazin created all-natural Primal Pit Paste. She made batches in her South Tampa kitchen, turned her dining room into a shipping center and, as business grew, expanded into her garage. Read more…
CROWD CONTROL? Social nature of crowdfunding should control fraud, advocates say
Crowdfunding has the potential to revolutionize how small businesses raise capital, but it generates an old worry: the possibility for fraud. But crowdfunding advocates say not to worry. The public nature of the investing model should help investors quickly identify and put a stop to bad behavior. Read More…
CrowdFund Association Open Letter to House Committee
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Crowdfunding’s Time Still Hasn’t Come, at Least Not for Equity Investments
If you’re hoping to raise capital for your business by selling small stakes to investors over the Internet, you better be patient — there’s no telling when this form of crowdfunding will become a reality. Congress legalized the use of crowdfunding for equity investments a year ago, when it passed the Jumpstart Our Business Startups Act. But the Securities and Exchange Commission still has not issued the regulations needed to implement the law. …Read More
New Studies Show 81% Jump in Crowdfunding
April 8, 2013 – New studies show that funds raised through crowdfunding jumped 81% from 2011 to 2012, and that the equity and debt based crowdfunding could be a $3.98 Billion market per year. Today, massolution, a research firm specializing in the crowdsourcing and crowdfunding industires, released its annual Crowdfunding Industry Report, finding that crowdfunding platforms raised $2.7 Billion worldwide for more than one million campaigns. These numbers show an …Read More
The JOBS Act One Year Later: Where Equity Crowdfunding Stands
April 5 marks the one year anniversary of the JOBS Act being signed into law by President Obama. The JOBS Act legalized equity-based crowdfunding in the U.S., which would allow ordinary Americans to invest in newly forming and established small businesses they believe in, while realizing a return on their contribution. The law gave the SEC a firm deadline for releasing its rules governing this new asset class — yet …Read More
Crowdfunding Professional Association Hosts Key Industry Event
Expert insights unlock new markets through finance, technology and social media NEW YORK (March 20, 2013) – The Crowdfunding Professional Association (CfPA) will host its 2nd Annual Crowdfund Investing Innovation Forum on August 8-9, 2013 in Orlando, FL. The forum has established itself as the must-attend conference for leaders, entrepreneurs, investors and policy makers who are committed to fostering capital formation and job creation. Presented by top crowdfunding pioneers, expert …Read More
Introduction to Crowdfunding for Entrepreneurs
SBA’s Office of Entrepreneurship Education provides this self-paced training exercise as an overview of crowdfunding (also commonly referred to as ‘crowd financing’ or ‘crowd sourced capital’). The highlighted next steps at the conclusion of the program will help you apply what you have learned and engage you in the process of crowdfunding. Read More…
While Waiting for SEC Regulations, Crowdfunding Leaders Focus on Investor Education
Some crowdfunding industry leaders are using the lull before the fundraising practice is publicly viable to develop educational material for people who may soon be making their first investments. The Securities and Exchange Commission is currently drafting rules to allow start-ups to sell stakes in their companies to the general public, potentially raising large sums from crowds of small investors. Until now, selling equity stakes has been limited to so-called accredited investors, people who …Read More