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Regulation Crowdfunding: One year In Force

Posted by Catherine Yushina on May 16, 2017 3:11:21 PM

The new crowdfunding rules – Regulation Crowdfunding (Reg CF) – are celebrating 1 year anniversary of being in force on May 16th. The new rules open new opportunities for both sides. Business owners have an alternative to funding their companies from a bigger number of supporters. At the same time, all U.S. residents can finally invest in entrepreneurs they believe in.

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Topics: Regulation Crowdfunding, Crowdfunding Trends

Why Women And Minorities Are More Successful In Crowdfunding

Posted by Catherine Yushina on May 9, 2017 7:30:00 AM

The new crowdfunding rules (Title III of the JOBS Act) are going to celebrate 1 year anniversary of being in force. Regulation crowdfunding opened new opportunities for both individuals and businesses. It enables the crowd - so every US resident, to invest in startups and small businesses while participating in the financial return. The goal of the Act was to make it easier for entrepreneurs and business owners to access capital to grow their companies. At the same time, this created an equal opportunity for people, not the Wall Street and Silicon Valley bulls, to potentially create a secondary income. But the new rules seem to be creating further impact.

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Topics: Regulation Crowdfunding, Crowdfunding Trends

Regulation Crowdfunding – What We’ve Learned from the First 100 Campaigns

Posted by Brian Collins on Mar 21, 2017 7:00:00 AM

Although regulation crowdfunding under the newly approved Title III to the JOBS Act has only been possible for less than a year, already 100 campaigns have been launched. This number exceeded my estimations and I’m sure impressed many lawmakers on Capitol Hill who were initially doubtful about the potential of regulation crowdfunding. While not every campaign has been successful, the sheer amount of campaigns launched validates the need for this market.

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Topics: Crowdfunding Trends

How You Can Benefit From Supporting Small Businesses

Posted by Catherine Yushina on Mar 14, 2017 7:20:00 AM

Today, the new crowdfunding rules enable every American to invest in small businesses and startups while getting a financial return - instead of a t-shirt or a product. One of the models gaining popularity is investing in companies in return for a share of their revenues. This is a perfect model for business owners who run local companies - like that cool coffee shop you work from every other day or that awesome artisan making the unique jewelry everyone compliments you on. The best part is that you need less money to start investing than traditional methods - investing as small as $200 could pay for a few extra cups of coffee in a few months.

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Topics: Crowdfunding Trends, Investment Tips, Investing Trends

Looking ahead to 2017, The Rise of Revenue based Financing

Posted by Brian Collins on Dec 17, 2016 7:00:00 AM

While 2016 will certainly go down as one of the most important years ever in the history of crowdfunding, 2017 may be remembered as one of the most exciting. Obviously the passing of Title III to the US JOBS Act in May of this year will be a key milestone for the industry given that this new legislation allows, for the first time ever, non-accredited investors the opportunity to invest directly in the equity and debt of startups and small businesses. That means that 95% of the capital concentrated in the United States now has the legal right and access to invest directing into the businesses and startups in their communities. There is little the industry will likely ever do that will eclipse this monumental achievement but while the passage of this law is truly impressive, the real excitement is derived from the growth and achievements of the actual startups and small businesses that now have access to capital.

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Topics: Crowdfunding Trends

How Successful is Reg Crowdfunding to Date?

Posted by Catherine Yushina on Nov 16, 2016 9:34:12 AM

Startups, small and medium businesses are the backbone of the US economy - and these businesses need capital in order to grow. Unfortunately, SMBs are underfunded partially because banks are retreating from this segment since issuing loans to small businesses using the traditional underwriting model is expensive.

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Topics: Crowdfunding Trends

Reg Crowdfunding: What to Look Out For

Posted by Catherine Yushina on Apr 20, 2016 5:30:00 AM

Title III (Reg CF) crowdfunding is officially becoming the other variant of investment crowdfunding along with Title II and Title IV (Reg A+) already this May. Even though this will create a more vibrant capital ladder for companies seeking to raise capital using the internet, within the industry the views vary. By some Title III is viewed as critically flawed while others believe it will emerge slowly as participants adapt and find ways to accommodate the most challenging aspects of the exemption. According to recent information provided to Crowdfund Insider, approximately 30 platforms have applied to the SEC to operate as a funding portal. Of these platforms, less than two dozen have completed the filing with FINRA. None of them were deemed complete and remain in process. Interestingly, some of the more “visible” platforms have not (yet) submitted applications.

But let’s leave this stuff for lawyers and policy makers and take a look at something that most of these platforms focus on - equity crowdfunding implementation. Among all of the issues being discussed, there are some things that both novel investors and businesses looking for alternative funding should think through.

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Topics: Crowdfunding Trends

Alternative Financing: Revenue-Based Funding

Posted by Catherine Yushina on Apr 6, 2016 5:30:00 AM

Today we are seeing interesting shifts in the funding world. One of the shifts is venture capital becoming the less common funding source for entrepreneurs. Since 2001, the number of VC firms has decreased by about 50%, while it is still setting records for the capital deployed. In the past a $100M fund was considered huge, and now there are plenty of billion dollar funds. This means that funds are growing bigger, but the spread of funding is tighter: firms are focusing more on the later stage rounds and angel groups are coming into play.

At the same time, funding stages are evolving too: in the past, Series A was when first institutional money comes in. Today, the seed is becoming the new Series A. This means that business ownership gets diluted faster - but the good news is that today there are more options for entrepreneurs to grow and capitalize their businesses. Alternative forms of financing – from micro-VC to super angels, to peer-to-peer lending, and crowdfunding - are democratizing access to capital.

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Topics: Crowdfunding Trends

Alternative Financing is the Biggest FinTech Sector

Posted by Grace Leung Shing on Apr 5, 2016 5:30:00 AM

Source: https://letstalkpayments.com/the-secret-of-the-fintech-unicorns/

The word “Fintech” was used for the first time only in 2013 with the hope that the sector could be a hotbed for Unicorns. In 2015 Fintech industry made a huge step - it transformed from a hypothetical hotspot to an actual one. There are more than 5000 Fintech startups in the world now and as of the end of 2015, 46 companies are in the «billion-dollar club» (with a total capitalization of US $98.1 billion) and 36 more unicorns “coming soon”. One of the main movers for this success has been new funding platforms, especially marketplaces for attracting external capital for business.

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Topics: Crowdfunding Trends

New Crowdfunding: Equity VS Revenue Share

Posted by Catherine Yushina on Mar 17, 2016 6:00:00 AM

The sharing economy platforms became the new black: Airbnb, Zipcar, Etsy, Uber, Kickstarter, Peerby, LendingClub, Prosper…Peer-2-peer keeps democratizing investment industry - we are witnessing the disruptive power of online collaboration and the new laws (JOBS Act Title III - non-accredited investors can invest in businesses) are opening new doors.  

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Topics: Crowdfunding Trends