Letters To The SEC

CfPA BOD Keynote at World’s Largest CrowdFunding Summit

chinaCfPA Board of Directors members Alon Hillel-Tuch, Jordan Fishfeld, and Scott McIntyre hosted at the world’s largest CrowdFunding summit. The October 2015 event in Guiyang, China expected 8000 attendees but received over 13,000. For more information, visit www.GlobalCFC.cn.

Entrepreneurship @ University: Role of Crowdfunding

university

Entrepreneurship @ University: Role of Crowdfunding

CfPA President, Scott McIntyre, addresses the International Crowdfunding Conference in Coimbatore, India, January 2016. Subject: Student Entrepreneurship Powered by Crowdfunding. More info here

Crowdfunding Conference 2016

The Largest Event for Reg A+, General Solicitation Techniques, and Raising Capital Online

The Crowdfunding Professional Association is pleased to be a supporting sponsor of The Crowdfunding Conference 2016. The Early Registration Discount of $300 is expiring this Friday. You can register at the following link: http://crowdfundingconference.com

DealFlow Events is adding new speakers to the agenda every day. Below are the first speakers to be announced before the Early Registration Discount expires.

Howard Morgan

First Round Capital

Co-founder, Partner

Fabrice Grinda

FJ Labs

Co-founder, Partner

Rory Eakin

CircleUp

Founder, COO

Jon Medved

OurCrowd

CEO

Dan Ciporin

Canaan Partners

General Partner

Slava Rubin

Indiegogo

Founder

Tim Draper

Draper Fisher Jurvetson

Founder, Managing Director

Bradley Harrison

Scout Ventures

Founder, Partner

Doug Ellenoff

Ellenoff Grossman & Schole

Partner

Yoel Goldfeder

VStock Transfer

CEO

David Teten

ff Venture Capital

Partner

Phil Nadel

Barbara Corcoran Venture Partners

Co-founder, Partner

Zack Miller

Tradestreaming

Founder, Editor in Chief

Lou Bevilacqua

Bevilacqua PLLC

Partner

Peter Lehrman

Axial

Founder, CEO

Kendrick Nguyen

Republic

Co-founder, CEO

John Berlau

Competitive Enterprise Institute

Senior Fellow

Sara Hanks

CrowdCheck

Founder, CEO

Lou Kerner

Flight VC

Partner

Mark Elenowitz

BANQ / TriPoint Global Equities

Founder, CEO

Andrew Dix

Crowdfund Insider

Founder, CEO

Neil DeSena

SenaHill Partners

Managing Partner

Anya Coverman

NASAA

Deputy Director of Policy and Associate GC

Anthony Hill

Intralinks Dealnexus

Director

David Feldman

Duane Morris

Partner

Karen Kerrigan

Small Business & Entrepreneurship Council

President

Mike Norman

Wefunder

Co-founder, President

Steven Lord

FINAlternatives

Editor

Thanks to our corporate sponsors for their support and collaboration in making CFC16 a success.


 

Register before July 15 and you’ll receive an early registration discount of $300.

For a limited time, registration is only $895.

 

 

If you would like to email or fax your registration, click here.

 

© DealFlow Media, Inc. (d/b/a DealFlow Events). All rights reserved. Dealflow.com®, DealFlow Events™, and The Crowdfunding Conference™ are trademarks of DealFlow Media, Inc.

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Gate Global Impact Partners With U.N. To Capitalize Social Entrepreneurs

Gate Global Impact announced at the recent United Nations Global Compact Leaders Summit a plan to feature select companies from the U.N.’s soon-to-be-launched Social Enterprise Action Hub on the Gate Global Impact GATEWAY Platform, a crowdfunding platform for social entrepreneurs to pitch impact investors…

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Why Crowdfunding Will Explode In 2013

The world of entrepreneurial finance is changing rapidly; we are at a tipping point that will make what seems like a vibrant part of our global economy today seem small in one year’s hindsight.

Whether you are a service provider, social entrepreneur, angel investor, venture capitalist, or one of the millions of people ready to become a small-scale start up financier, it is time to pay attention.

Estimates for annual crowdfunding transactions go as high as $500 billion annually compared to 2011’s $1.5 billion (anticipated to be $3 billion in 2012).  If crowdfunding even begins to approach that scale, it will completely change the landscape for start-up financing.

Read More…

Equity Crowdfunding Is Now Legal. How Can You Get Your Piece of the Action?

Equity crowdfunding in the United States is a blank slate. With equity crowdfunding’s recent legalization in the United States, many companies smell an opportunity to develop technical and financial innovations to help the industry mature.

Equity crowdfunding is much like crowdfunding, which has been popularized in the United States through sites such as Kickstarter and Indiegogo. The difference is that instead of individuals supporting campaigns through donations, numerous investors are purchasing small stakes in startups or small businesses. Critics of crowdfunding worry that the industry will be rife with Ponzi schemes or that having too many investors will hurt startups’ prospects for future funding.

Proponents of equity crowdfunding, however, point to its success in countries such as Australia and Germany. For example, Seedmatch, an equity crowdfunding platform in Germany, allows investors to enter long-term investment contracts where they get equity. Australia, where equity crowdfunding has been legal for seven years, already has a platform for “secondary” sales of unlisted issued securities.

Currently, equity crowdfunding in the United States lacks the organizations and support infrastructure, such as investor verification systems and clearing houses, needed for a thriving equity crowdfunding ecosystem.

“We are already beginning to experience the proliferation of financial innovation with secondary exchanges, investor verification systems and private securities-clearing,” Crowdnetic CEO Luan Cox said. “I believe that as the infrastructure matures, more and more financial service providers will adopt crowdfinance and the industry will rapidly develop into a viable asset class.”

Companies such as Finagraph are helping investors cut through the opaque fog often associated with investing in startups. They provide a portal that will allow investors to analyze companies’ current financial health. According to MIT Profssor Christian Catalini, creating more transparency and developing trust will be essential for equity crowdfunding’s success.

“It will be interesting to see how the ecosystem around equity crowdfunding platforms will evolve,” he said. “There is an opportunity for third-party intermediaries to provide certification (e.g., on the technical feasibility of an hardware project) and quality ratings in the market to improve its efficiency. A trustworthy intermediary would increase the number of transactions that can actually take place. Platforms will experiment with different forms of market design and rules, in an effort to select only projects that meet a certain quality level.”

Catalini already sees some healthy equity crowdfunding experimentation that will help the industry mature.

“This will spawn a number of innovations, as traditional institutions and new ones start experimenting with how to bring crowdfunding to the next level,” he continued. “We will see some failures, and we will learn from them in an effort to develop better regulation. It will be interesting to see how crowd due diligence on projects will evolve, as right now it mostly relies on one or a few lead investors taking the lead on the activity. Interestingly, platforms like AngelList are already experimenting with ways to encourage talented investors to use their skills and scale their operations by allowing others to co-invest, and incentives are aligned because they get a carry on the investment.”

One glaring obstacle, according to Director of Research Richard Swart, who oversees crowdfunding research at Berkeley, is the lack of crowdfunding auditors.

“There also needs to be a better way of doing financial audits,” Swart said. “There’s a big gap in the market when it comes to auditing small businesses or early-stage startups. The Big Four accounting firms just don’t have it covered yet. Most startups don’t have great financial accounting. It will take some time for the market to mature. You will probably see institutional investors experiment with equity crowdfunding before you see individual investors. 90% of America doesn’t even know what equity crowdfunding is.”

Swart believes equity crowdfunding will be attractive to “Main Street USA” businesses with loyal customers, but especially attractive to tech startups that do not want to deal with venture capital funds.

“I wouldn’t be surprised if we saw large pools of investment, say 20-40 million dollars,” he said. “They might just find that the costs of capital are much lower with equity crowdfunding. It’s better than dealing with VCs. A lot of people are worried that equity crowdfunding might create problems for startups who later want to seek venture capital money. However, you might see a new convertible instrument, where instead of debt being converted to equity, you will see equity turned into debt. The debt will have a much higher interest rate, so as to make it attractive to the earlier investors, and so that VCs will be wiling to invest in certain companies.”

While opportunities in equity crowdfunding exist, University of Virginia Law Professor Edmund Kitch warns that simpler securities laws are necessary for equity crowdfunding to truly thrive.

“If crowdfunding is to flourish the most obvious need is for a skillfully curated web site that will review projects and their promoters to ensure that they are honest and have the basic skills to succeed,” he said.  ”Such web sites are unlikely to develop if the government stands in the way.  If the government would simply create an open space for crowdfunding sites to operate, it could monitor their development and if it identified specific problems that create the need for targeted legal intervention, it could then pursue that intervention.  Unfortunately, the JOBS Act is enacted within the regulatory complexity of current securities law, and does not accomplish this simple goal.”

Read More From NerdWallet:

mc20130103_crowdfunding via CreativeCommons

Crowdfunding Road Map Founder Ruth Hedges Interviewed (Video)

Ruth Hedges, Founder and CEO of Funding Roadmap and one of the early investment crowdfunding advocates, is interviewed by Devin Thorpe – a frequent Forbes contributor who covers “impact investing”.

Read More…

CfPA Sponsored Crowd Investing Forum To Take Place This Week

The Crowdfunding Professional Association’s (CfPA) 2nd Annual Crowd Investing Innovation Forum will convene top crowdfunding pioneers, policymakers, entrepreneurs and investors in Orlando on August 8th through 9th to address the most urgent issues in capital formation and job creation, corporate and entrepreneurial crowdfunding initiatives.

Following the July 11th rule change by the SEC, the JOBS (Jumpstart Our Business Startups) Act of 2012 now allows for private companies to actively solicit investment in the media and online, giving accredited investors easy access to private equity deals.  The crowdfunding industry is coming together here for the first time since the rule change. The conference is timed to spark innovation and frank discussion on how investors and emerging companies both can take advantage of new crowdfunding opportunities.

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TubeStart Increases Funding for YouTube Content Creators With Launch of Subscription-Based Crowdfunding Platform

TubeStart announced today that it will be waiving fees for content creators that sign up campaigns during the first 2 weeks of August. The new platform will provide the more than 1 million YouTube creators from 30 countries with the opportunity to run both traditional rewards based and royalty-based crowdfunding campaigns, as well as launch “unique-to-market” subscription-based crowdfunding campaigns for driving ongoing revenue. Both established YouTube producers as well as creative newcomers will be able to tap into this new crowdfunding model provided by TubeStart. Read More…