Startup Fundraising And Investing
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Long-awaited SEC rules clarify how entrepreneurs will one day raise money on crowdfunding portals.

Efforts to influence the final proposed rule for Financial Disclosure (Section 4A(b)(1)(D)), requires “a description of the financial condition of the issuer,” in which regulators have requested comments from the public for the Final Proposed Crowdfunding Rules released on October 23, 2013. Industry pioneers, like Ryan Feit, CEO of SeedInvest, and myself, are exploring options for the industry to consider including a cost benefit analysis of the proposed rules.

Crowd funding has changed the investment world. Not only has everything become more transparent but people who did not see interesting deal flow come across their desk can access crowd funding platforms daily to see the latest and greatest.

The Securities and Exchange Commission’s newly proposed crowdfunding rules span a whopping 585 pages, so naturally, it took experts and analysts the better part of a few days to wade through all the details in the text. Now that the dust is beginning to settle, it’s clear that the proposal included some good news and some not-so-good news for those waiting to take advantage of the new rules, which would allow entrepreneurs to raise small amounts of capital from lots of people through new online funding portals.

The day before the Securities and Exchange Commission voted last week to propose rules to implement the crowdfunding section of last year’s JOBS Act, advocates on both sides of the issue — those favoring investor protection and those eager to make it easier for companies to raise capital — appeared to fear the worst.

Startups and entrepreneurs could soon reach larger numbers of potential investors through investment websites under “crowdfunding” rules proposed by federal regulators. The Securities and Exchange Commission, in a 5-0 vote, outlined a plan aimed at helping startup companies sell shares online, allowing them to pool together small amounts of capital from ordinary investors.

Today the Securities and Exchange Commission voted to approve its first rules under Title III of the 2012 JOBS Act governing crowdfunding. Experts Jilliene Helman of Realty Mogul, a crowdfunding site for real estate investments, Doug Ellenoff, a securities lawyer specializing in crowdfunding law, Jason Best, who was instrumental in the passage of the JOBS Act and attending the signing ceremony at the White House on April 5, 2012, Ryan Feit of SeedInvest, and Bill Clark of MicroVentures will join me for a live discussion and instant reaction to the proposed rules at noon Eastern today, October 23, 2013.

The Securities and Exchange Commission on Wednesday formally proposed new rules that would allow entrepreneurs to raise capital from anyone in the country through online investment portals. The new rules, which were approved unanimously by the five-member commission and now enter a three-month comment period, would give companies the green light to start widely selling securities through what are known as crowdfunding portals.

The Securities and Exchange Commission finally released its proposed rule governing crowdfunding, but final approval is unlikely this year. Nearly a year and a half after the passage of the Jumpstart Our Business Startups Act, the SEC voted today to propose rules governing crowdfunding. The rules, if adopted, will allow companies to raise up to $1 million every 12 months from non-accredited investors. Firms that use crowdfunding can only complete transactions through federally regulated funding portals.

CFO answers your questions about crowdfunding, general solicitation and the Jumpstart Our Business Startups Act.

Ryan Feit and James Han wanted their crowdfunding site to be more than a listing service for startups in search of cash. So when the former investors launched New York City-based SeedInvest in February, they handpicked the companies they wanted to include. The idea was to make it easier for startups to stand out from the crowd and give accredited investors the highest caliber of companies from which to choose.

SeedInvest aims to make it easier for startups to stand out from the crowd and give accredited investors the highest caliber of companies from which to choose.

Recently, a company called SeedInvest, an online platform designed to make it easier for investors to identify their ideal startups, was launched. In short, they are making it possible to do online what has been done in person for a century or more. Due diligence, compliance and the funding process itself are all seamlessly completed online, so that investing in a startup is as simple as buying a stock through your online broker.

After its breakout year in 2012, crowdfunding services continue to curry favour. Crowdfunding platforms, led by companies like Kickstarter that offer perks in exchange for cash, are expected to generate USD3bn this year, double last year’s total. The long-anticipated rubber-stamping of President Obama’s JOBS Act in the US is expected to spark an explosion in services that offer equity for would-be investors’ dollars.

When Jamie Rosen raised money for DietBetter, a startup he runs in Manhattan, he expected the investors he found to have lots of questions for him, and maybe even want to meet in person. "People want to kick the tires," said Mr. Rosen, who has raised money for several other Internet startups.

Operators of online equity crowdfunding platforms may be the first to benefit from the rules approved by the Securities and Exchange Commission on July 10 that will allow general solicitation and advertising in private placement financings.

We recently reported on SeedInvest Groups, a product aimed at angel groups and other investor networks. Recently the STAR Angel Network leveraged SeedInvest groups to close a round for Cincinatti-based mobile app startup LISNR.

Angel: an attendant, agent or messenger of God. It seems an oddly spiritual way to describe a class of investor. But for entrepreneurs trying to catch a break, the word may feel apt. According to Investopedia, angel investors, who fund early stage startups, give more favorable terms than other lenders. "They are focused on helping the business succeed, rather than reaping a huge profit from their investment. Angel investors are essentially the exact opposite of a venture capitalist."

SeedInvest has launched a new feature on their equity crowdfunding platform. The feature, called SeedInvest Groups, specifically targets angel groups, venture capitalists and other organizations with an active role in funding early-stage companies.

A crowdfunding platform called SeedInvest is betting that investors want a little privacy as they review and back promising startups online. The site recently rolled out SeedInvest Groups, a feature that lets managers of angel groups invite members to review deals and fund companies without doing so in the view of industry onlookers.

With a new set of tools, crowdfunding platform SeedInvest is looking to make startup investing as easy as buying a share of Microsoft. The New York company now has $1 million to work more on the platform, thanks to a fund-raising round.

SeedInvest has announced completion of a $1 million funding round to hasten development of its equity-based crowdfunding platform for accredited angel investors. Jumpstart New Jersey Angel Network led the round.

You have just arrived on South Africa’s startup scene, you’re lost and not sure where to start, or what to do next. You have inherited millions and you’re looking to invest through an Angel Network and its safety in numbers. Your company is great but your growth strategy is a bit lacking.

On 10 June 10, 2013, the Startup Stock Exchange (SSX) will open its marketplace for startup investing and funding. On SSX, investors of any level can buy shares of vetted startup companies, and shares are traded freely — investors can buy or sell anytime and control their own account. For startups and small businesses, SSX is a compelling way to raise funds.

It's not just Kickstarter anymore. Here's a road map.Crowdfunding used to be pretty simple. Artists, inventors, and filmmakers posted their ideas, and funders chipped in a few bucks to make something happen. Kickstarter, the site that triggered the crowdfunding movement, was the cornerstone. In three years, the site has helped launch more than 95,000 projects.

So you've finally finished developing your product or service, flushed out your business model, and you're ready to dive head first into your new business venture — but how the heck do you raise enough capital to get started? Taking venture capital is one way to secure the funds necessary for starting your business. According to recent statistics from Reuters, venture capital firms invested over $4 billion dollars in startups in 2012, and more than $900 million was invested in the first quarter of 2013.

As companies wait for the Securities and Exchange Commission to finalize the Jumpstart Our Business Startups Act rules, they may be eager to pounce on equity-based crowdfunding. Once the SEC writes the rules, businesses will be able to raise up to $1 million from non-accredited investors and use general solicitation to secure funding from accredited investors, such as hedge funds and angel groups. But they will have to carefully consider the way they approach crowdfunding, particularly from non-accredited investors.

The first anniversary of the Jumpstart Our Business Startups (JOBS) Act brought unbridled criticism of its shortcomings, but those defending the initiative say it's still too early to appraise and, as the case may be, condemn. After all, the august plan to allow companies engaged in private offerings to solicit funds publicly has had no implementation from the Securities and Exchange Commission (SEC) on two main parts--Title II, which allows general solicitation of accredited investors, and Title III, which allows for the solicitation of non-accredited investors

It’s been roughly a year since the JOBS act (Jumpstart Our Business Startups) was put in place allowing certain regulations and securities encouraging crowdfunding or micro-financing in the US. From crowdsourcing t-shirts, education or even people, entrepreneurs have adapted to the changing scenery of investment innovations. 2012 was the year of Kickstarter as more than 500-million dollars have been pledged to fund almost 40 000 projects on this popular crowdfunding site. Are the recent crowd-based enterprises just an inevitable post-fad ripple effect? Or are they future symptoms possible of disrupting traditional concepts of finance, markets or economics?

SeedInvest Co-founder James Han is to speak as part of the Crowdfunding Panel for The Soho Loft and FundingPost Venture and Angel Event on Thursday, April 18, 2013. The event will take place at Bingham McCutchen at 399 Park Avenue in New York. The event will also feature a panel of Angel Investors who will host the Life is a Pitch Workshop.

Some have said that crowdfunding will somehow replace angel investors or venture capitalists. Ryan Feit doesn't see it that way, and it's not how SeedInvest, the New York City crowdfunding site he co-founded, is operating in its first few weeks.

DietBet.com, the social dieting company, has raised $308,000 in bridge funding through equity crowdfunding platform, SeedInvest. DietBet is the second company to meet its funding initiatives on SeedInvest in the last month. The company launched in February 2013 and has more than 400 active accredited investors and more than 300 companies on its platform.

Remember crowdfunding? Buzz around it reached a fever pitch around this time last year, and with the passing of the JOBS Act, the wait began. We waited, and we’re still waiting, for the SEC to establish the rules around the new form of investing. It was supposed to happen end of last year. Like I said, we’re still waiting.

One year ago, President Obama signed the Jumpstart Our Business Startups Act into law. So, why isn’t “equity crowdfunding” a reality for startups and regular people who want to support them, in the U.S.?

SeedInvest CEO and Co-Founder, Ryan Feit, will deliver a presentation and moderate a panel at The Soho Loft Innovative Investing Symposium on April 3, 2013 in Boston, MA. Mr. Feit will be presenting a case study highlighting the successful equity-crowdfunding initiative by StearClear in which the company oversold its fund raise by 40% in just 5 days on SeedInvest. He will also be moderating a panel entitled "Optimal Outcomes for the Equity Crowdfunding Investor and How to Get There."

If you’ve got a small business or startup that needs investors, attending angel or venture capital investing events will provide you the opportunity to meet with and market your ideas to potential investors.

Equity crowdfunding platform SeedInvest announced this week that StearClear is the first company to complete a successful raise on the SeedInvest platform.

FORTUNE -- Steve Rattner has angered a crowd. In a New York Times column Monday, Rattner, a contributor to the Times' Opinion Pages, took a swing at the JOBS Act, particularly the portion relating to crowdfunding.

Equity crowdfunding platform SeedInvest, which launched just last month, already has its first funding success story. StearClear, the app-based designated driver service, raised $140,000 in capital in just 5 days on SeedInvest. The round was oversubscribed by 40% utilizing SeedInvest’s groundbreaking platform that provides accredited, angel investors access to high-quality, curated investment opportunities.

Investing successfully in startups takes more than a pocketful of cash. That's the message venture capitalists and securities regulators hope to transmit to those interested in equity-based crowdfunding, a new form of investing currently awaiting regulatory approval.

On game shows like “American Idol” or “Dancing With The Stars,” industry pros judge performers, and largely determine their fate. But audience members who use the show’s mobile voting systems can tip the scales in favor of a given competitor.

According to sources in the crowdfunding industry who were present for yesterday’s meetings in Washington, there is reason for cautious optimism in regards to Title III implementation.

Crowdfunding is not just about creating jobs, it is about creating jobs for the right people. In April of 2012, President Obama signed the JOBS Act into law, authorizing crowdfunding of equity and debt for the sake of creating jobs. The more time I spend studying crowdfunding and working with the leaders in the crowdfund community, the clearer it becomes that not only will crowdfunding create jobs, it will create jobs in the right places.

Leaders of the venture capital and Crowdfunding community, as well as leading small business advocacy groups, will meet with law makers, regulators and policy officials on February 19th to provide an in-depth review of preparations that the Crowdfunding and investment community have taken to prepare for the legalization of Equity-based Crowdfunding.

SeedInvest, an equity-based, crowdfunding platform, has launched its platform that connects accredited investors to high-quality start-ups and small businesses seeking funding.

SeedInvest launched an equity crowdfunding platform that brings together accredited investors and startups and small businesses in the U.S. seeking funding.

SeedInvest co-founders Ryan Feit and James Han always knew they wanted to start a business, even as they both found themselves working in New York private equity firms. That entrepreneurial drive took them back to Wharton to pursue their MBAs.

SeedInvest has launched a new equity-based crowdfunding platform today that connects accredited investors with technology startups and small businesses looking for new funding.

One of the more interesting points that emerged from last week’s Sunshine Act meeting of the SEC Advisory Committee on Small and Emerging Companies was the following recommendation:

Entrepreneurs rejoiced in April, when President Obama signed legislation letting small businesses solicit mom-and-pop investors for funding. Small business owners started preparing for an influx of investment. Web portals for managing the sale of shares in private companies sprung up overnight.

“CFIRA welcomes the SEC’s approval of FINRA’s Form for Funding Portals. We see this as a very positive and proactive sign that both agencies intend to prioritize rule making on the JOBS Act.

Details of the JOBS Act are still being worked out. That said, here are my leading picks for this year. I’ll do a follow-up post in a month’s time to offer additional up-and-coming crowdfunding organizations.

Come and learn from our panel of crowdfunding experts how you may soon be able to use crowdfunding to fund your startup. Those interested in investing in crowdfunding, starting a crowdfunding portal, creating other products and services related to crowdfunding would also greatly benefit from this event.

Private Equity, funds, angel networks and broker dealers are embracing the technology underpinning crowdfunding with its standards of deal presentation and distribution channels to potential investors.

“There is nothing more difficult to take in hand, more perilous to conduct or more uncertain in its success, than to take the lead in introduction of a new order of things, because the innovator has for enemies all those who have done well under the old condition, and lukewarm defenders in those who may do well under the new.”

Whilst the obvious answer is in a good business, good idea and a good team; this blog explores that this is an obvious trap. The simple answer to where to invest is follow the team and whilst this is the stable advise from any venture and PE house, should and does the same apply for those looking at using their hard earned money to invest in emergent, early or growth businesses using a crowd funding platform?

Sherwood "Woodie" Neiss is passionate about entrepreneurship. And he has helped lead the charge to change nearly 80-year-old federal securities laws about investing, so that entrepreneurs can gain access to capital.

Caroline Morrison and Siobhan Southern are tired of salads. And, they suspect, so are the rest of Raleigh’s vegetarians.

How much do you know about Crowdfunding? This was the context of a survey conducted by Crowdfunding Professional Association in conjunction with Crowdfund Capital Advisors.

StartOut invites you to join us as we participate at the NY Business Expo starting on November 14th. The Expo is a disruptive and interactive B2B trade show that focuses on showcasing innovative products and services from startups and small businesses.

SeedInvest sat on the crowdfunding panel at the FundingPost Mobile Venture & Angel Conference on October 17th. It was the event to be seen and heard as investors, startups, service providers, and press in mobile technology gathered to hear leading experts from various segments of the mobile industry.

With seed capital for startups getting difficult to find by the day,many Entrepreneurs are looking at crowdfunding platforms to raise funding for their startups. What is Crowdfunding? It describes the collective effort of individuals who network and pool their resources, usually via the Internet, to support efforts initiated by other people or organizations.

We've teamed up with StartupAmerica to add a new event on a topic that we've all been wanting to learn more about! At the same time that we hear about the lack of angel investments and venture capital, we're seeing some amazing results from entrepreneurs that turn to Internet crowdfunding sites.

Crowdfunding could be a $6.2 Billion US market in 2013, CfPA Chair Sherwood Neiss told participants at a live webinar today sponsored by New York’s General Assembly. More than 100 participants heard Mr. Neiss and Ryan Feit, co-founder and CEO of SeedInvest, LLC, provided an overview of crowdfund investing and other forms of crowdfunding in a program called “Essentials of Crowdfunding.”

NowStreet Media, a leader in financial markets’ reform, is pleased to announce the speakers and sponsors for its upcoming Evolving Capital Markets & Crowdfunding Symposium being held on Tuesday, August 21st at Nelson Mullins Conference Center in Atlanta.

At the Venture Association of New Jersey (VANJ) meeting on July 12, 2012, in Whippany, panelists addressed issues surrounding crowdfunding, a major change to capital formation for small tech companies, authorized by the Jumpstart Our Business Startups (JOBS) Act.

Whether he knew it or not, President Obama created a brand new industry when he signed the JOBS act into law on April 5th. Up until now, it’s been illegal for private businesses to offer equity to anyone other than accredited investors in exchange for funding.

Ryan Feit is the CEO and co-founder of SeedInvest, an equity-based crowdfunding platform. As a highly involved player in the recent signing of the JOBS Act, he shares his advice and thoughts about what the legislation means for America and for the world.

Interested in meeting early-stage Investors in the Consumer Products and Services Industries? Then register for the FundingPost conference on Thursday, July 26, 2012, in Philadelphia!

A lot of work, little reward Are you tired of seeing your stocks jump up and down month after month but end up about where they started? Are you fed up with trying to dissect not just company data, but arcane matters like Greek politics, Spanish banking rules or obscure Fed moves like "Operation Twist"?

A group of top debt and equity crowdfunding platform and industry experts today announced the creation of the Crowdfunding Professional Association (CfPA), which will operate as a complementary sister entity to the Crowdfund Intermediary Regulatory Advocates (CFIRA) organization.

"There's no question," says Ryan Feit, founder of SeedInvest, "entrepreneurs are a job creation engine." SeedInvest, which won third place at Philly Startup Weekend 3.0, is perfectly timed to rise from newly enacted legislation that changes 80 year old securities laws. Feit graduates from Wharton with an MBA in just a few weeks, but is already on a fast track to becoming a major player in finance.

Entrepreneurs can now rely on the masses to get their big break. Earlier this month, Obama signed the Jumpstart Our Businesses Act to stimulate the job market. One of the provisions will ease regulations on businesses and allow them to raise funds and create more job positions.