Opinion

Group Hopes to Shorten Crowdfunding Learning Curve for Investors as SEC Irons Out Regs

When the Jumpstart Our Business Startups Act of 2012 passed, the Securities and Exchange Commission was given the task of promulgating rules to allow and promote the crowdfunding of equity (currently limited by law for non-accredited investors). The creatively titled portion of the law — the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act, or CROWDFUND Act — called for this rulemaking to take place within 270 days of the passing of the legislation, which would have been Dec. 31, 2012. So far, the SEC has yet to create all the necessary rules, but that hasn’t stopped one group from banding together to make…

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Crowd-funding risks worthwhile

Businesses and individuals with a bright idea will be able to raise as much as $2 million from the public without having to issue a formal prospectus from April next year. Commerce Minister Craig Foss said that was when new rules in the Financial Markets Conduct Bill would come into effect that are designed to encourage crowd-funding, “peer-to-peer lending” and employee share-ownership schemes. Freeing issuers from red tape carried risks but the trade-off was desirable, Foss said. “There is a risk in everything but … it is filling a huge gap in New Zealand’s capital-raising market.” He was very optimistic the new rules could make New…

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Crowdfund your dream vacation trip

Sam Wineman wanted to take a road trip this summer, but he didn’t have the cash to bankroll his dreams. What the 28-year-old Sacramento, Calif. man did have, however, was Web savvy and a knack for recognizing humor in awkward situations. Those attributes, along with help from the online crowd funding platform Kickstarter, allowed Wineman, an aspiring filmmaker, to raise more than $3,500 for a trip through the Western United States that included going on several blind dates to be featured in a Web series he’s shooting. Wineman’s success is typical among a new generation of travelers who may not have the personal finances to support…

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Is is time to side with venture capitalists on this innovative approach to crowdfunding?

Is is time to side with venture capitalists on this innovative approach to crowdfunding?

Crowdfunding has had more than its fair share of bad publicity with accusations that the sector is amateurish, unregulated and taking advantage of private-investor goodwill. But the latest variant on the crowdfunding theme, the Syndicate Room, is attempting to bring a little more business savvy to this overpopulated sector. The Syndicate Room, the first of its type in the world, asks investors to put their money into companies which have already received substantial financial injections from professional business angels. In effect, investors are given the chance to piggy-back on dragons’ den style professional investors, who have already piled in the cash. “Much of crowdfunding is about…

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Why Kickstarter and crowdfunding can’t replace traditional investors

Why Kickstarter and crowdfunding can’t replace traditional investors

Editor’s note: This is a guest post by Aaron Pitman, an angel investor and founder and partner of RA Domain Capital. If you’ve ever been to a big, rowdy concert, you’ve probably witnessed the phenomenon of crowdsurfing. This happens when a musician or fan takes a leap of faith from stage, knowing the crowd will carry them to safety. Using crowdfunding for your startup venture is much like crowdsurfing a rock concert — and also carries the same hazards that, at any moment, someone might drop you to the ground. Still, Kickstarter success stories seem to be everywhere. The late, great teen detective television drama Veronica Mars broke all manner…

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