Crowdfunding Now!

https://youtu.be/1aM-IKPPJeg ‪#‎ crowdfunding‬  session at @WallStreetProj  #‎ WSPES2016  ‬ https://youtu.be/1aM-IKPPJeg  via @YouTube

We note with interest a recent study from the University at Buffalo School of Management that shows "high quality photos and video, previous crowdfunding success and positive comments from backers are the keys to a successful campaign." This syncs with what we uncovered in our two books, " The JOBS Act: Crowdfunding for Small Businesses and Startups " and in " Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns ." According to news reports, the University at Buffalo School of Management study "found that by receiving these signals, potential investors..gain valuable information that motivates them to participate and increases the likelihood of a project achieving its funding goal." One part of the analysis we found in error, however. One of the authors of the study was quoted as saying that "These sources are important because backers of crowdfunded projects have less access to information than typical priv...

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...