Monday, August 25, 2014

India becomes the first country to crowdfund a project!

"To raise funds for Prime Minister Narendra Modi’s dream project — Statue of Unity, world’s tallest statue at 182 metres — the state government has roped in the multinational IT consultant Accenture to build an IT platform for crowdfunding to raise funds for a project through the Internet.
Accenture has been granted a tender of Rs 3 crore which was floated by the Sardar Sarovar Narmada Nigam Limited (SSNNL), the state government agency executing the project. Official sources said that Accenture was the only bidder for the tender which submitted a bid of Rs 2.5 crore. Accenture has also paid the security deposit of 10 per cent of its bid to the SSNNL.
The state government has already granted the tender for the construction and maintenance of the statue to engineering giant Larsen & Toubro Limited (L&T). The government had floated a tender of Rs 2,063 crore for the project against which L&T emerged as the lowest bidder which offered its services at the cost of Rs 2,980 crore. Interestingly, to build and maintain the statue, the government had only two bids. The other bidder was a consortium of three companies led by JMC Projects India that had submitted bid of Rs 4,100 crore. Government sources said that L&T will be issued a Letter of Intent to build and maintain the statue shortly following which the company would carry out exercise for designing the project in the next 3-4 months and then construction work will begin.
The state government requires funds presently estimated to be more than Rs 2,063 crore for the project. Chief Minister Anandiben Patel, who heads the Sardar Vallabhbhai Patel Rashtriya Ekta Trust (SVPRET), the special body to execute the project, has demanded status of a national monument for the project."

Sunday, August 24, 2014

Equity Crowdfunding Legal in Texas on Sept 1.

As one article notes, "The Texas State Securities Board, led by Commissioner John Morgan, is scheduled to meet August 27, 2014 to pass the new (crowdfunding) rules slated to go into effect the first of September."

Another article states that "Texas as is now the 13th state to create its own equity crowdfunding rules and by-pass the JOBS Act. The U. S. SEC has not released or finalized the federal rules and some states see the billion dollar opportunity equity crowdfunding presents and they have decided to take the bull by the horn and jumpstart small business and economic development in their state.

Section 3(a)(11) of the 33 Act exempts from registration any security that is part of an offering sold only to persons residing within a single state if the company is also doing business in that state. So, as long as a company complies with the federal intrastate exemption, it only needs to be concerned with the state’s crowdfunding rules when conducting a crowdfunding offering; it won’t also have to comply with the federal crowdfunding law.

Texas-based businesses now have more options to raise capital. This alternative may lead to new innovations, more jobs and stronger companies that will boost the local economy. Well, at least that’s the hope. Businesses in the oil and gas, real estate, technology, art and entertainment, agriculture, food and hospitality industries may see an uptick in investment through online equity crowdfunding activities. This may be true for those business executives who are savvy enough to recognize the opportunity, create a strategy and execute said strategy."

For more information, contact

John Morgan
Securities Commissioner
State Securities Board
(512) 305-8303

Proposed Crowdfunding Forms can be found here.

Tuesday, August 12, 2014

DC Crowdfunding Exemption Proposed

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.

Friday, August 1, 2014

NCS Selected as Crowdfunding Advisor to the Government of the District of Columbia

National Crowdfunding Services, LLC (NCS) today announced the company was selected as Crowdfunding Advisor to the Government of the District of Columbia. Specifically, NCS will provide crowdfunding services to selected grantees of the District's Great Streets Program.

Great Streets “is the District's multi-year, multi-agency commercial revitalization initiative to transform emerging corridors into thriving and inviting neighborhood centers. Led by the Office of the Deputy Mayor for Planning and Economic Development (DMPED) in conjunction with the Office of Planning (OP) and the District Department of Transportation (DDOT), Great Streets has grown into a multi-year, multi-agency program that utilizes public actions and resources to leverage private investment in retail, office space, housing, and cultural facilities across the District.”

DC native and Howard University graduate William Michael Cunningham, Managing Partner at National Crowdfunding Services said, “We are honored. NCS has long been regarded as a leader in the crowdfunding space, providing not only the most in-depth research and analysis, but also providing thought leadership. We will use crowdfunding to address critical small business market development and financing needs. We believe crowdfunding is a critical emerging tool in the small business development and financing toolbox, and are glad the Government of the District of Columbia agrees. We look forward to working with the many extraordinary businesses along the Great Streets corridors.”

NCS will help the City evaluate six Great Streets Grantees who will be selected for the DC Crowdfunding Challenge. NCS will work with the six finalists to launch and manage crowdfunding campaigns.

For complete details about the DC Challenge contact Henry W. Burger, Director of Business Development, National Crowdfunding Services at (202) 430-6330  or front.office@nationalcrowdfundingservices.com