Since September 23, 2013, the inauguration date of the ability for companies to raise money through general solicitation under Regulation D Rule 506(c), the promise of crowdfunding has steadily grown. Implementation has been choppy, at best as issuers and intermediaries work through regulatory uncertainties, and as investors interested to participate have had to sort through the cluttered landscape of web-based…
We have seen the statistics. Start-ups in the United States have declined from 12-13 percent of all firms to 7-8%. 31% more companies shut their doors each year than open them. Some find these statistics depressing, if not alarming. They shouldn’t. With more than 30 million businesses in the U.S., 7-8% still represents more than 2,000,000 entrepreneurs getting started. They…
A beginner’s guide to cryptocurrency wallets. In my previous article I went over how to purchase Bitcoin and other cryptocurrencies from Coinbase. Unless you are going to send your crypto from Coinbase to an exchange or have some other near term destination in mind it’s best to go ahead and move your holdings to a wallet. A wallet is software…
Throughout the 2009-2012 period more than 40,000 Reg D filings were made by non-financial issuers, with a median offer size of $2 million. In 2012 alone more than 234,000 investors participated in Reg D offerings and 90% of those were listed as accredited. 506 accounts for approximately 99% of amounts sold. Interestingly, only 13% of Reg D offerings since 2009…
Equity crowdfunding allows entrepreneurs to reach investors interested in purchasing partial ownership interests in their startups or privately-held small businesses – all in a transparent, accountable way. Let’s review some of the different components that make equity crowdfunding work so efficiently: What Are Equity Crowdfunding Portals? Equity crowdfunding portals are essentially online middlemen through which entrepreneurs seeking capital and investors…
More than 2 billion people are online and exchanging ideas. This is fundamentally changing the way the capital markets work. The Internet, social media and new regulations allowing for general solicitation over the Internet have created an unprecedented opportunity for private, emerging growth companies to raise awareness and capital for their business. Meanwhile, the Internet and social media are being…
Raising capital to fund your business plan is arguably one of the most difficult and trying experiences you will ever experience as an entrepreneur, as an officer, and as a board member. On any given day there are literally hundreds, if not thousands of other entrepreneurs competing with you for capital. After all, it is a zero sum game. As…
Technology is radically reshaping the financial services industry before our eyes. This paradigm shift is affecting everything from the way we borrow and lend money, process payments, and even the very nature your clients invest. As an investment advisor, you have front-row seats to these incredible changes. Embracing these innovations will help you better connect with clients, distinguish yourself from…
Crowdfunding is changing the way entrepreneurs get the capital they need to put their business ideas into action. What is it? It’s simply a method of raising capital through a group of people and individual investors (“the crowd”). Crowdfunding takes advantage of the collective efforts of a large pool of individuals, leveraging their networks for greater reach and exposure. Crowdfunding…
