Skip to main content

DC Crowdfunding Exemption Proposed

Image
By

The D.C. Department of Insurance, Securities and Banking issued a Notice of Proposed Rulemaking on the District of Columbia-Only Securities Offerings Exemption on August 8, 2014. Comments are due Sept. 6, 2014.

"The proposed rulemaking would establish a localized exemption from the District’s full securities registration requirements in order to simplify and encourage investing in D.C.-based small businesses.
To qualify for the exemption, the business must be organized under D.C. law, have its principal place of business in the District and the securities in the offering must be offered only to D.C. residents. The proposed method of funding (up to $2 million) will be available only to D.C.-based businesses..."
All persons desiring to file comments on the proposed rulemaking should submit written comments via e-mail to disb.dconlyregs@dc.gov. or by mail to the Department of Insurance, Securities, and Banking, 810 First Street, NE, Suite 701, Washington, DC 20002, Attn: Lilah R. Blackstone, Assistant General Counsel.
Labels:

Comments

Post a Comment

Popular posts from this blog

Crowdfunding Accounting 101 - Revenue Recognition in Crowdfunding

By
A start-up using crowd funding to create a product is different from a normal company. The start-up has cash inflows from donations but does not have a product, yet. In this situation, we recommend using completed-contract method to recognize revenue. Under this way of thinking, we assume the start-up is akin to a project or a long-term contract. The crowdfunding company will find it difficult to estimate the revenue from crowdfunders and, hence, the cost of rewards or perks. Under International Financial Reporting Standards (IFRS) and GAAP guidelines, if the firm cannot reliably measure the outcome of the project, revenue should be recognized based on contract costs. These costs should be expensed when incurred. Profit is recognized only at the completion of the project. In summary, for crowdfunding companies, revenue, expense, and profit are recognized only when the crowdfunded product is actually manufactured. 1 For example, assume that AAA Corp. wants to manufacture bicyc...
Post a Comment
Read more

Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns

By
  Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns Kindle Edition https://www.amazon.com/gp/product/B00RKK4NL0/ref=dbs_a_def_rwt_bibl_vppi_i0
Post a Comment
Read more

Top 50 Crowdfunding Campaigns

By
The chart below results from an analysis of the Top 50 crowdfunding campaigns on Indiegogo, 'Top' measured by total dollars raised. The X axis shows the dollar amount of the reward or  perk ($1 to $10, $11 to $20, etc.) The Y axis shows the cumulative number of rewards/perks collected across all 50 campaigns, so the chart shows that, for the top 50 crowdfunding campaigns on Indiegogo, 100,000 rewards/perks with a  value ranging from $1 dollar to $10 dollars were selected by supporters.  Normally, we might expect this chart to be convex, declining steadily from $1 to $5000. This is not what we see, however. It seems that people are willing to donate small dollar amounts, up to about $50, and then contributors look to donate at least $100. What's going on here? To explain this phenomenon, classify backers into two categories: 1. The first category are people who simply want to help. They donate less than $50 dollars and do not donate for the reward (normally a T-shi...
2 comments
Read more