May was an exciting month for startups and investors! The thirty-two largest funding rounds reported by CrunchBase totaled over nine billion dollars in investments.
After years of ongoing regulatory debate, this morning at 8:00 AM PST the SEC has finally approved Title III of the JOBS Act in a 3:1 vote. Today marks a monumental time for the crowdfunding industry as access to venture as an asset class has opened up for non-accredited investors.
While there are still many factors to marinate on within our company internally, we’ve outlined the newly enacted Title III regulations accompanied by our initial reactions:
Monday’s announcement will be remembered as a watershed event within both the online equity funding space and the greater VC landscape. AngelList announced a dedicated $400MM fund (provided by CSC, a Chinese private equity firm with $12B under management) devoted to catalyzing companies raising capital on its platform through its syndicate model. This is undoubtedly a positive sign within the industry and bodes well for seed and pre-seed stage entrepreneurs seeking capital.
“An enthusiastic philosopher, of whose name we are not informed, had constructed a very satisfactory theory on some subject or other, and was not a little proud of it. "But the facts, my dear fellow," said his friend, "the facts do not agree with your theory."—"Don't they?" replied the philosopher, shrugging his shoulders, "then, tant pis pour les faits;"—so much the worse for the facts!” Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
Every morning I listen to Bloomberg Radio while I run. Usually, it’s just news catch up and background chatter while I think about my plans for the day. The past few weeks, however, I’ve been paying much closer attention.
While 90% of startups fail, some become billion-dollar companies - think Airbnb and Uber. FlashFunders CEO Vincent Bradley highlights 10 startups worth an investor's attention in his article "One of These 10 Tech Start-Ups Could Be the Next Facebook or Twitter" on The Street. Highlights include live-stream social media on Periscope, a place to invest in influencers through The Influential Network, a practical wine connoisseur's Club W, and Honk, the roadside assistance app for millennials. Bradley has honed in on 10 companies with a potential to see huge growth and major returns on investment.