Crowdfunding Now!

The crowdfunding provisions of the JOBS Act are one of the most exciting developments in the world of finance this year. The ability of companies with innovative products and services has already been proven. This effectively disintermediates venture capital firms and banks from a process they have been purposefully obstructing, the process of providing small businesses and entrepreneurs with start up capital.  As I mention in several blog postings ( http://under30ceo.com/ignore-the-naysayers-the-job...  and in my book (The JOBS Act: Crowdfunding for Small Businesses and  Startups  http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X)   I understand that this is a complicated question, but it is also a critical one.  Here is what I think the SEC must do now:  Broaden the base. At its November 15th Forum on Small Business Capital Formation, the SEC did not have a single African American on any of the panels. (I guess the SEC needs binders full of brothers.

Interesting blog post by someone  (AFP and The Grand Theft Orchestra)   who raised a million on Kickstarter. Read her blog posting for more detail. She describes where the money went: Old bills and paying back bank loans $250,000.00 CD book manufacturing and shipping costs $105,000.00 Vinyl production costs $30,000.00 Art books $80,000.00 Art book production costs $15,000.00 Neil and Kyle books $30,000.00 100 Turntable packages $15,000.00 Arts and Crafts 7 inch packages $30,000.00 Six City Tour $10,000.00 House parties $10,000.00 Art party visual artists $20,000.00 Commissions $150,000.00 Four or five music videos $80,000.00 Kickstarter and Amazon fees $75,000.00 TOTAL $900,000.00 The first thing to note is the first item. What old bills? Bank loans? $250,000? That 25% of the raise . Commissions? $150,000? Most startup company crowdfun

On November 15th, the SEC held a Forum on Small Business Capital Formation. The Forum, held at SEC Headquarters, covered the following: 9:00 a.m.- Call to Order - Gerald J. Laporte, Chief, Office of Small Business Policy, SEC Division of Corporation Finance - Introductions of Chairman and Commissioners Meredith B. Cross, Director, SEC Division of Corporation Finance - Remarks Chairman Mary L. Schapiro, Commissioner Elisse B. Walter, Commissioner Luis A. Aguilar, Commissioner Troy A. Paredes, Commissioner Daniel M. Gallagher 9:50 a.m. Panel Discussion: JOBS Act Implementation- Moderators: Meredith B. Cross, Director, SEC Division of Corporation Finance, Gregory C. Yadley, Partner, Shumaker, Loop & Kendrick, LLP. Panelists: Sara Hanks, Co-Founder and CEO, CrowdCheck, Jean Peters, Board Member, Angel Capital Association; Managing Director, Golden Seeds Fund LP, Michael Lempres, Assistant General Counsel & Practice Head, Silicon Valley Bank, William Beatty, Director of

Crowdfunding News 11/16/12 Crowdfunding Gains Traction in UK Wall Street Journal (blog) As founders of escapethecity.org , a website that helps high-flying executives leave the rat race of corporate life, Rob Symington and Dom Jackman didn't want to rely on City financing when they needed money to expand their young company in London. See all stories on this topic » CrowdFund Investing: Emphasis Turning to Implementation and Entrepreneurs Forbes I had the chance to catch up this week with Alon Hillel-Tuch, the Founder and CFO of Crowdfunding platform RocketHub ( www.RocketHub.com ), in New York. As we near the JOBS Act's legalization of CrowdFund Investing(CFI) in 2013, allowing loan and ... See all stories on this topic » Forbes Why We Chose Crowdfunding For Our Product (Should You?) Forbes In reality, there are many things to consider when jumping into one of the hottest trends in the world of entrepreneurs, both positive and negative. Whol