In July we reviewed some preliminary information about how Reg CF was doing; now that the calendar year is over, the SEC’s Office of Corporate Finance has released a white paper reviewing the Reg CF offering data from 2016. Let’s take a look.
For companies needing a significant cash injection but not ready for an IPO, Regulation A+ may be an attractive choice.
If you’re a tech enthusiast interested in options for supporting startups, you might be trying to discern the difference between Kickstarter or Indiegogo and equity crowdfunding. Traditional equity crowdfunding sites facilitate the ability for “backers” to donate money to campaigns in exchange for perks, like sample products or tee shirts. Platforms using Regulation CF facilitate the sale of a form of equity in private companies to investors.
The biggest concerns about equity crowdfunding revolve around cap table management, red tape, and perception.
With Reg CF, companies will be able to raise up to $1 million from the crowd within a 12 month period, and they will be required to follow certain regulations dealing with transparency and reporting. FlashFunders has streamlined the process to make compliance easy and simple.
For the first time, in almost a century, anyone can invest in private companies. With the public stock market prices at an all-time high and bond yields historically low, startups offer an exciting new way to diversify your investment portfolio.
- Companies used to create much of their value after selling shares on the public stock market.
- Because of technology and new regulations, companies can now raise most of the capital they need from private investors. They don’t have as immediate of a need as they once did.
- New rules in effect May 16, 2016 allow anyone over the age of 18 to purchase shares in private companies.
As 2016 begins and 2015 ends, I wanted to jot down a few thoughts about where VCs have been over the last year and the questions that might be answered over the next year.
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:
Thanks to the current tech boom, the world is full of aspiring entrepreneurs looking to start the next Uber. And to do so they need capital. That’s where 506(c) comes in.
The 2012 JOBS Act and upcoming Title III enactment has and will further impact the early-stage startup capital raising process, as well as broaden investor access to early-stage investment opportunities. In Vincent Bradley's article "The Dangers (and Rewards) of Investing in a Startup" published by The Street, he examines the various risks and benefits that come with these new regulations.