Crowdfunding Now!

I attended the Government-Business Forum on Small Business Capital Formation held at the US Securities and Exchange Commission on November 19th.  According to the SEC, one of the Forum's goals "is to .. highlight perceived unnecessary impediments to small business capital formation and address whether they can be eliminated or reduced. Each forum seeks to develop recommendations for government and private action to improve the environment for small business capital formation, consistent with other public policy goals, including investor protection. Participants in the Forum typically have included small business executives, venture capitalists, government officials, trade association representatives, lawyers, accountants, academics and small business advocates..the format of the Forum typically has emphasized small interactive breakout groups developing recommendations for governmental action."  Let me just say that the Forum was a  confirmation of some ...

As we  forecast , today (10/30/15) the US Securities and Exchange Commission (SEC) voted 3 to 1 to allow small companies to raise up to $1 million online. Small firms and startups can now solicit anyone, regardless of their location, net worth or wealth, thereby giving small investors a chance to own what may be the next Facebook or Google (or not).  More likely, it means the day care center or restaurant down the street can now offer ownership stakes, or shares of stock, to their most supportive customers and clients. This is great news for women and Black-owned firms, which tend to be small and capital starved. The SEC vote approving rules implementing  Title III of the JOBS Act  means greater opportunity for minority, women and veteran firms to obtain equity funding. In addition to allowing firms to raise capital from anyone via a crowdfunding platform (a Financial Industry Regulatory Authority or FINRA registered internet website set up specifically for t...

"Notice is hereby given, pursuant to the provisions of the Government  in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange  Commission will hold an Open Meeting on Friday, October 30, 2015 at  10:00 a.m., in the Auditorium, Room L-002.  The subject matter of the Open Meeting will be: The Commission will consider whether to adopt rules and forms related  to the offer and sale of securities through crowdfunding under Section  4(a)(6) of the Securities Act of 1933, as mandated by Title III of the  Jumpstart Our Business Startups Act.  http://www.sec.gov/news/ openmeetings/2015/ ssamtg103015.htm  " Having said, in March, 2015 that the SEC wasn't going to do Title III,  we changed our minds last week and declared that the SEC was going to  approve Title III after all. https://www.linkedin.com/ pulse/sec-poised-implement- title-iii-jobs-act-cunningham- am-mba?trk=pulse_spock- articles We think they will also announc...

Yesterday, the U.S. Securities and Exchange Commission (SEC) announced "that it will hold its annual Government-Business Forum on Small Business Capital Formation at its Washington D.C. headquarters on Nov. 19, 2015. The morning session of the forum will feature panel discussions on exempt and registered offerings occurring after the passage of the JOBS Act." You can register for the forum  here .  We think the SEC will use this opportunity to release the final Title III crowdfunding rules. As I describe in my  book on the JOBS Act , small businesses and startups will be able to raise up to $1 million in equity (or debt) funding online via what are called Crowdfunding Platforms―online communities and websites. Imagine an eBay-like site that allows you to post your idea for a commercial venture online and then allows investors to purchase equity shares or stakes in it.  Recently,  two state securities regulators (Montana and Massachusetts) brought...

I attended a HowU Innovate panel on how to raise money for your startup. The invitation encouraged people to "Come out and hear from some of the best minds in the field." While not super well attended, I did find it interesting. There was much good information, but it seemed a less edgy, more conventional rehash of a talk I gave at Howard in April and of the talk I gave at the 2015 National Black MBA Association Washington DC Chapter (NBMBAA-DC) Entrepreneurship Expo. My talk, titled “Black People and Venture Capital” is on video below. One person sent me the photo at left in response to a photo I tweeted out during the meeting.  Now, that's a little harsh, but I understand why they sent it. Much of the advice was super conventional and rests on the fiction that Black people can actually get money from VC's. At one point, the person on the panel who works for a VC referenced the small number of Black professionals he knows, implying that there we...

As the New York Times reported, "Syrian refugees continue to flee the violence at home, President Obama is turning to the modern tools of Silicon Valley entrepreneurship as a supplement to the more traditional means of humanitarian relief. At the request of officials from the White House Office of Digital Strategy, the crowdfunding website Kickstarter has begun its first social service campaign aimed at raising money for the United Nations refugee agency on behalf of Syrian refugees."  Here is my 10/7 talk on NPR's Press Play with Madeleine Brand:  http://www.kcrw.com/news-culture/shows/press-play-with-madeleine-brand   How effective is this? They raised $700,000 in six hours. Six hours. For more, visit the links below.  http://www.nytimes.com/2015/10/07/world/middleeast/obama-turns-to-crowdfunding-to-aid-fleeing-syrians.html?_r=0 http://qz.com/519438/kickstarter-just-crowdsourced-a-million-dollars-for-syrian-refugees/ http://www.huffingtonpost.com/entry/kic...

Book: The JOBS Act: Crowdfunding for Small Businesses and Startups http://www.amazon.com/gp/product/143024755X/ Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns http://www.amazon.com/Top-50-Crowdfunding-Campaigns-Successful-ebook/dp/B00RKK4NL0 Businesses, Brushed Off by Banks, Look to Customers for Funding http://www.thestreet.com/story/11780547/1/businesses-brushed-off-by-banks-look-to-customers-for-funding.html New Crowdfunding Site Supports Black Entrepreneurs   http://www.bet.com/news/national/2013/04/19/new-crowdfunding-site-supports-black-entrepreneurs.html Crowdfunding Site Targets African Americans http://upstart.bizjournals.com/money/loot/2013/04/15/crowdfunding-site-targets-african.html A Crowdfunding Site for Black Entrepreneurs http://www.washingtonpost.com/business/capitalbusiness/the-download-a-crowdfunding-site-for-black-entrepreneurs/2013/04/12/9089fe78-a2c9-11e2-be47-b44febada3a8_story.html As Cro...

I recently gave a talk at the 2015 National Black MBA Association, INC. Washington DC Chapter (NBMBAA-DC) Entrepreneurship Expo. My talk, titled “Black People and Venture Capital: Why You May Never Get Funded,” available at  https://youtu.be/gXGBEUoxHHs I started with a discussion of the key financial institution in the country, the Federal Reserve Board, which controls the allocation of capital via monetary policy, the tools used to control the supply of money.  The Fed is located at 20th Street and Constitution Avenue N.W. and I encouraged DC entrepreneurs to visit the institution, since the Fed directly impacts the ability of small businesses to get capital. I also encouraged Black businesses in DC to use the recently established Offices of Minority and Women Inclusion as a powerful potential source of capital and contracts. Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act contains a provision creating an Office of Minority and Women In...

Tech808 is  this  Saturday June 6th  at George Washington University  and it's shaping up to be one of the rarest types of tech conferences to hit the DC area. Tech808's mission is to bring awareness of the possibilities of tech entrepreneurship within the urban culture. Who Should Attend Tech808? Wantrepreneurs: You are the new guy/girl on the block. You want to start a company but have no idea how. You might have a 9 to 5 gig, been laid off, or decided it was time for a change. All of our speakers have been there, #Tech808 will not only educate you on tactics needed, but it will also leave YOU INSPIRED TO CHASE YOUR DREAMS! Entrepreneurs: So you already started to chase your dreams? Salutes on that! Now join us at #Tech808 to learn how to take your company and yourself to the next level. We’ve brought together some incredible speakers to teach YOU their tactics that have led them to success. Speakers/sessions include: Paul Brunson - "Business Lessons I Learned Fro...

As one author noted, "Here are some of the main points of the Illinois Intrastate Crowdfunding Bill (HB 3429). Adds new definition of 'accredited investor' which is now tied to the federal definition (see new 815 ILCS 5/2.34). Amends the transaction exemption provided by 815 ILCS 5/4(H) to allow for offers, sales and/or issuances of securities to any 'accredited investor' and for the general promotion of the same (to the extent specified in the Bill). Provides new definition of  'qualified escrowee,' which includes title insurance companies and banks authorized to do business in Illinois who maintain at least one (1) physical location in the state (see new 815 ILCS 5/2.35). Provides new Intrastate Crowdfunding Exemption (see 815 ILCS 5/4(T)). Highlights include: $1,000,000 funding cap unless the Issuer has made available to prospective purchasers audited financial statements, in which case the funding cap will be $4,000,000. – See subsection (2) ...

We have posted the DRAFT SEC Title IV Crowdfunding forms.... Form 1-A:  https://drive.google.com/file/d/0Bx3S91AlzNJ4dmpMSGxlNGF1OFk/view?usp=sharing Annual (Form 1-K):  https://drive.google.com/file/d/0Bx3S91AlzNJ4ekVHYUZjZHRfZEk/view?usp=sharing Semiannual Report (Form 1-SA): https://drive.google.com/file/d/0Bx3S91AlzNJ4Tl9oM0VUemxoODQ/view?usp=sharing Current event (Form 1-U): https://drive.google.com/file/d/0Bx3S91AlzNJ4Tk53eWNVLUd0dmM/view?usp=sharing Exit (Form 1-Z) Report:  https://drive.google.com/file/d/0Bx3S91AlzNJ4OE5KX20tUUJoLTA/view?usp=sharing Keep in mind, these are DRAFT forms, but if you want to know what the paperwork will look like...well, here it is. This is part of my class on How to Crowdfund:  https://www.udemy.com/how-to-crowdfund/

We posted an article with the title "How to Crowdfund" in 2012. Given all that has happened in the interim I thought we would update it. This data is from  our Online Class on How to Crowdfund -  https://www.udemy.com/how-to-crowdfund/ (Video preview :  https://youtu.be/nL5svW7pN7w ) As I noted in 2012, crowdfunding , getting investments and donations from individuals via the internet,  has taken off, giving individuals who have, until now,  been shut  out of funding markets access to much needed cash. It will especially help socially responsible individuals and those seeking to fund socially responsible projects. These are exactly the types of projects that have had an extraordinarily difficult time raising capital in the current economic downturn.  In my book on  crowdfunding  ( The JOBS Act: Crowdfunding for Small Businesses and Startups , published by Apress) I discuss how to raise ...

"How To Crowdfund" on Udemy: https://www.udemy.com/how-to-crowdfund/ Course Contents: What is Crowdfunding? The JOBS Act's definition of " crowdfunding ," “ crowdfunding platforms," and “emerging growth companies" How to get up to $1 million through crowdfunding The risks and rewards of taking advantage of crowdfunding Intellectual property protection Choosing a crowdfunding platform SEC Title IV Regulation A - how does this work? Indiegogo vs Kickstarter State-level crowdfunding How to stay on the right side of the law when soliciting funds How to identify and deal with reliable crowdfunding platforms and companies How businesses owned by women and minorities can raise new capital, as well as those now shut out of the capital markets (restaurants, day-care centers and others ignored by finicky venture capitalists and skittish bankers) How investors can identify opportunities, avoid fraud, perform due diligence, and then make an int...