Crowdfunding Mergers Continue; CoFoundersLab and RockThePost Join Forces to Form New Equity Crowd-funding Site in the United States

New Equity Crowdfunding Platform, Onevest, Creates One-Stop Shop for Investors Seeking Startups in the United States

By Robert Hoskins

New York, NY – From early stage venture capital firms to family offices, high-net-worth individuals and non-accredited individuals, investors will find Onevest the perfect place to get a first look at the world’s most dynamic startups. Onevest has a diversified network of over 35,000 startup founders and over 15,000 investors. Onevest’s partner network, ranging from Techstars and Founder Institute to leading universities such as Harvard, Cornell and the University of Michigan, will continue to expand the investor base and deal flow.

New Equity Crowdfunding Platform, OneVest, Creates One-Stop Shop for Investors Seeking Startups

OneVest was formed  to provide Investors seeking early stage startups with a one-stop online shop to simplify their search and due diligence process. RockThePost brought the online investing platform to the table, which connected startups with accredited investors, while CoFoundersLab was offering investors and small businesses an in-person matchmaking network that scientifically builds startup teams.  The two business were a perfect match and should streamline the entire equity fundraising process and will have offices in New York, Washington, D.C., and San Francisco.

The upcoming implementation of Title III of the JOBS Act means over 250 million American investors will have access to equity crowdfunding platforms, as opposed to the 8 million using them today. As the investor pool grows, Onevest will make it easier to connect with qualified startups.

RockThePost was founded in 2010 by Alejandro Cremades and Tanya Prive, who will be CEO and COO of Onevest; Drew Butler will be CTO. TIME named RockThePost one of the world’s best crowdfunding platforms, Forbes dubbed it a top digital tool for entrepreneurs and Business Insider spotlighted it as a hot startup.

CoFoundersLab’s team-building platform uses proprietary tools to match entrepreneurs with core founding team members with complementary skills and compatible goals and values. The site makes over 5,000 introductions monthly and has over 35,000 founder members worldwide, with a strong presence in over 35 U.S. markets. CoFoundersLab was founded in 2011 by CEO Shahab Kavianiwho will be Onevest’s CMO. Erick Brimen, CoFoundersLab’s COO & VP of Finance serve as Onevest’s CFO.

Onevest captures companies at the formation stage, capturing the best deal flow before the transactional stage, and reduces investment risks arising from founder issues, since members are scientifically matched to create startup teams. “Knowing the teams intimately will be a key driver for investor confidence, setting Onevest apart from other platforms,” Cremades stated.

Onevest’s combined value was not disclosed. Investors from RockThePost and CoFoundersLab will join Onevest as shareholders. This includes investor affiliations from SOL Ventures, Militello Capital, Fortify Ventures, Maryland Venture Fund, Talent Equity Ventures, and members of Robin Hood Ventures and Mid-Atlantic Angel Group. Onevest has raised $3.3 million to date.

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SEC Lifts Ban on General Solicitation; Implements First Phase of JOBS Act for Reg. D, Title II Accredited Investors

SEC Lifts 80-Year Ban on the General Solicitation of Private Placement Equity Investments

By Robert Hoskins

Today, the United States finally inched its way toward the full implementation of the JOBS Act passed in April 2012, required by federal law to be in place by January 2013, but still not fully realized as intended by President Obama and the both houses of the U.S. Congress.

SEC Crowdfunding Call for Comments on November 15, 2013

“We want this new market and the private markets in general to thrive in a safe and efficient manner, and these rules we adopted and proposed are designed to facilitate that objective,” said Mary Jo White, Chairwoman of the SEC. “As we fulfill our mission to facilitate capital formation and maintain fair and efficient markets, the Commission must always focus on strong investor protections.”

Until the general solicitation ban was lifted, hedge funds, VCs, and startups had to quietly raise that money, soliciting by word of mouth and other forms of private communication. Now companies can buy ads, launch PR campaigns, leverage social media and openly announce that they’re seeking investors.

The addition of general solicitation is expected to fuel a new cottage industry of investor matching-making websites that aim to broaden the investment pool to financial stalwarts outside the stanchly protected investment circles of Silicon Valley.

“With general solicitation it will be much easier for investors to find companies they are passionate about supporting,” said Mike Norman of crowdfunding website, WeFunder. The new rule will hopefully open up the capital-starved startup market to the majority of investors. According to WeFunder’s website, only 3% of the US’s 8 million accredited investors are active in the tech startup space.

For example, leading startup investing platform, RockThePost, announced last week that its equity crowdfunding website will provide the following equity crowdfunding investment services:

1. Prominent featuring of startups publicly announcing investment rounds
2. Investor verification system that shifts the burden off startups
3. Secure transactions where Escrow accounts act as a safe haven for early committed investors
4. Full transparency – third party identity checks and legal business verification, crowdsourced due diligence, bank-level security
5. Smart matching of investors to startup investments that match their preferences

Equity crowdfunding sites such as Angelist, Circleup, Crowdfunder, FundersClub, RockThePost and Wefunder are important the nascent industry because according to the Center for Venture Research, only 258,000 investors have made an angel investment out of the 8.7 million accredited investor households eligible to invest in the U.S.

The general solicitation ban lift will allow startups to publicly fundraise via methods such as equity crowdfunding, harnessing the power of the internet and social media to reach potential investors in all corners of the country.

According to a Forbes article, many states have decided not to wait on the SEC. Kansas, the first state to enact laws requiring the registration of sales of securities to the general public 100 years ago, turned out to be the first in the U.S. to enact an “intrastate” Invest Kansas Exemption law. The state of Georgia passed the Invest Georgia Exemption that provides even more freedom for crowdfunding than the Kansas exemption. North Carolina’s House passed a crowdfunding bill that is expected to move to the full legislature in an updated form and be signed into law next year. The state of Washington is currently teeing up crowdfunding legislation and other states will likely follow suit.

Tanya Prive, a co-founder of RockthePost, points out that “One of the other issues I’ve seen is that there are plenty of startups with a large customer base that they cannot tap into for capital support under existing regulations. These people are the biggest fans and evangelists of the brand, who might be first in line to invest. Once the user base is able to engage with their beloved company in fundraising mode via an investment crowdfunding platform, the company will be able to capitalize on the crowd’s interest in their success and accelerate the fundraising process by converting customers into investors.”

“So although there are strings attached to the ruling, lifting the ban on general solicitation – an 80-year-old rule – will help investors connect with entrepreneurs, and vice versa. The decision also weighs in the favor of entrepreneurs and investors who live outside places like Silicon Valley, where old-school networking and personal connections are how financing deals typically happen,” said Eric Markowitz, crowdfunding reporter for Inc. Magazine. “By lifting the ban, entrepreneurs living outside traditional tech hubs may find it easier to connect with investors, raise money, and grow their start-ups without having to necessarily relocate.”

Although large players like private equity firms Bain Capital and Blackstone Group LP could take advantage of the chance to use television ad campaigns, many lawyers and regulators close to the industry have said that they expect smaller funds with fewer resources to test the new rule first.

“By allowing issuers to solicit to a broader group of potential investors, the SEC has showed its commitment to democratizing the investing process and putting an end to yesterday’s ‘old boy’ investor networks,” said Barry Silbert, founder and chief executive of SecondMarket Inc., a marketplace for private shares.

The next important date to watch for is October 31, 2013, when the 2nd wave of SEC crowdfunding guidelines are expected to be issued for Title III investors that will allow unaccredited investors to participate in private placement investments.

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More News on the SEC’s New General Solicitation Rules:

1. SEC Lifts Ban On General Solicitation, Allowing Startups

2. SEC Approves JOBS Act Requirement to Lift General Solicitation Ban

3. Starting Today, Startups Can Broadcast Their Fundraising From the Rooftops

4. The General Solicitation Ban Lift Can Change Startup Investing Forever

5. Crowdfunding Will Flourish Regardless Of What The SEC Does

6. Game Changer: SEC Lifts General Solicitation Ban

7. Boon for Start-ups: SEC Lifts Ban on General Solicitation

8. SEC lifts longtime advertising ban for hedge funds, others

9. SEC Lifts Ban on General Solicitation in Certain Private Placements

10. S.E.C. Lifts Advertising Ban on Private Investments

11. SEC Votes to Ease 80-Year-Old Ban on Private-Investment Ads

12. SEC Lifts Ban on Hedge Fund Ads

13. SEC Lifts 80-year-Old Ban on Advertisements for Private Investors

14. SEC lifts advertising ban on private investments: How it affects you

15. SEC Votes to Lift Ban on Hedge Fund Advertising

RockthePost Predicts Legalization of General Solicitation Will Change Startup Investing Forever

The SEC general solicitation rule change washes away some limitations on promotion of fundraising campaigns that have been in place for 80 years

By Robert Hoskins

Many changes are going to take place in the startup investment industry as the SEC lifts its ban on general solicitation on Monday, September 23.  With this implementation, the startup ecosystem will see an 80-year-old securities law modified for modern times, allowing private companies – startups in particular – to publicly advertise that they are seeking investments.

Alejandro Cremades launches crowdfunding project as a solution to help save the U.S. economy.

Among the exciting developments, leading startup investing platform RockThePost will unveil the following, in conjunction with Title II of the JOBS Act taking effect on Monday:

1. Prominent featuring of startups publicly announcing investment rounds
2. Investor verification system that shifts the burden off startups
3. Secure transactions where Escrow accounts act as a safe haven for early committed investors
4. Full transparency – third party identity checks and legal business verification, crowdsourced due diligence, bank-level security
5. Smart matching of investors to startup investments that match their preferences

RockThePost CEO, Alejandro Cremades, notes that “our startups have had mixed feelings on general solicitation, but the ones who are planning to take advantage of it are really excited about the exponential exposure from which they can benefit tremendously.”

According to the Center for Venture Research, only 258,000 investors have made an angel investment out of the 8.7 million accredited investor households eligible to invest in the U.S. The general solicitation ban lift will allow startups to publicly fundraise via methods such as equity crowdfunding, harnessing the power of the internet and social media to reach potential investors in all corners of the country. We expect a large jump in angel activity in the coming years as individual investors seek higher returns on investment and feel more comfortable investing in startups.

The nature of startup investing is risky, but to grow the nest egg, investor money has to be put to work. With a financial shift underway in which low yields and high interest rates are prevalent, investors are forced to look beyond traditional investment avenues to reach their financial goals.

A 2013 UBS report, Investment Strategy Guide, recommends that 7 to 11% of any given investment portfolio be allocated to new alternative investments, which includes buying equity in early stage companies (note that only accredited investors may participate in private offerings).

Startup investing involves high risk. However, investing early in startups has the potential of yielding high returns as seen below.

• $1,000 in Facebook in 2005 = $624,500 today
• $1,000 in Airbnb in 2009 = $589,667 today
• $1,000 in Dropbox in 2008 = $391,500 today

RockThePost does believe that openly fundraising in the startup investing world could significantly help startups gain access to capital in an economic environment in which investors are more readily looking for high-return investments.

General solicitation will potentially increase the number of transactions happening between investors and startups. RockThePost expects these changes to drive the U.S. economy as small businesses have created almost 65% of the net new jobs for the past 17 years.

By democratizing access to startup capital for entrepreneurs and bringing startup investment opportunities to a new investor demographic, RockThePost aims to be the go-to destination for both startups and investors.

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More News on the SEC 80-Year Ban on General Solicitation:

• Mary Jo White, SEC Approves JOBS Act Requirement to Lift General Solicitation Ban on Crowdfunding for Accredited Investors

• SEC Issues Call for Crowdfunding Suggestions to Promote Small Business Capital Formation

• BlazeFund Launches New Innovative Equity Crowdfunding Platform

• Front Page PR Offers Broker Dealers General Solicitation Campaigns to Market the Oncoming Wave of Equity Crowdfunding Investment Opportunities to the Next Generation of U.S. Accredited Investors

• Jeff Pulver’s Zula Equity Crowdfunding Campaign Pushes Israel’s OurCrowd into the Worldwide Lead of Broker/Dealer Crowdfunding Deals

• Wowcher Selects BankToTheFuture.com as Equity Crowdfunding platform for Fabfob fundraising campaign

• New Equity Crowdfunding Portal VentureHealth Launches to Provide Life Science Crowdfunding Investment Opportunities for Accredited Investors in United States

• Equity Crowdfunding Investments Surpass $16 Million on MicroVentures Broker/Dealer Crowdfunding Platform

• Ingenious Britain in the UK offers 25% Stake in New Equity Crowdfunding Platform on Crowdcube

Top 100 Crowdfunding Sites for Equity-based, Rewards-based, Perks-based and Donation-based Fundraising Campaigns

Click Here to Review the 2015 Top 10 Rated Crowdfunding Sites to Help Anyone Launch a Fundraising Campaign to Raise Money to Bring Creative New Business Ideas to Fruition

By Robert Hoskins

Austin, Texas – Thinking about launching a Crowdfunding campaign to raise money to fund your creative business idea and bring it to fruition?  The Crowdfunding Press Center provides regular news reports on new Crowdfunding sites that have opened their doors to help entrepreneurs and small businesses launch fundraising campaigns to help bring their ingenious business ideas to fruition.

Top 10 Crowdfunding Sites for 2014

The big question that most crowdfunding campaign managers want to know is what crowdfunding site is the best to launch their fundraising campaign? Kickstarter vs. Indiegogo, which crowdfunding site is better? Or would one of the other crowdfunding sites outlined below be a better match for their precise crowdfunding goals and objectives.

Directory of Recently Launched Crowdfunding Sites: [Click to Tweet]

• 99Funding
• AlumniFunder
• BanktotheFuture
• Bellavate
• Big-Concepts
• ClickStartMe
• cMEcompete
• Crowd Valley
• Crowdcube
• Crowdfund It Today
• Crowdfunder
• Crowdit
• CrowdTilt
• Foodstart
• Fundable
• FunderHut
• Fundly
• give2gether
• GivetoBenefit
• iCrowd
• KrowdKidz
• Launcht
• Mini America
• PiggyBackr
• Pik a Venture
• PledgeCents
• RockthePost
• Seed&Spark
• SeedInvest
• Start a Cure
• Sterlingfunder
• UInvest
• VentureHealth
• WeFunder
• YouCaring

Directory of the Top Rewards-Based Crowdfunding Sites: [Click to Tweet]

• ArtSpire
• Crowdtilt
• Feed the Muse
• FunderThunder
• IndieGoGo Crowdfunding
• iPledg
• Kickstarter Crowdfunding
• MassiveMov
• RocketHub
• Springboard
• TechMoola

Directory of the Top Disaster-Based Crowdfunding Sites: [Click to Tweet]

• Go Fund Me
• HelpersUnite.com

Directory of the Top Non-Profit-Based Crowdfunding Sites: [Click to Tweet]

• Crowdrise
• Fractured Atlas
• Fundly
• Razoo
• Start Some Good
• USA Projects

Directory of the Top Music-Based Crowdfunding Sites: [Click to Tweet]

• ArtistShare
• Hifidelics
• PledgeMusic
• Sellaband

Directory of the Top Film-Based Crowdfunding Sites: [Click to Tweet]

• Offbeatr
• Slated
• VODO

Directory of the Top Design-Based Crowdfunding Prototyping Sites: [Click to Tweet]

• FabLabs
• Inventors Warehouse
• NextFab Studio
• NYC Resistor
• TechShop

Directory of the Top Sports-Based Crowdfunding Sites:

• Involved Fan

Directory of the Top Publishing-Based Crowdfunding Sites: [Click to Tweet]

• Magcloud
• PubSlush
• Unbound

Directory of the Top Photojournalism-Based Crowdfunding Sites

• Emphas.is

Directory of the Top Arts & Crafts-Based Crowdfunding Sites:

• Etsy

Directory of the Top International-Based Crowdfunding Sites: [Click to Tweet]

• Buzz Entrepreneur – France
• Fund R Venture – United Kingdom
• Geldvoorelkarr – Netherland
• Indulu.be – Hungary
• New Jelly – Norway
• PPL – Portugal
• Starteed – Italy
• The Crowd Angel – Spain
• Ulule – France
• WazoKu – United Kingdom
• WEBclusive – Netherlands

Directory of the Top Crowdfunding Accelerators, Boot Camps, and Incubators:

• AlphaLab
• Capital Factory
• DreamIt Ventures
• Good Company Ventures
• Junto Partners
• Seed Hatchery
• TechStars
• Y-Combinator

Directory of the Top Lending-Based Crowdfunding Sites: [Click to Tweet]

• Funding Circle
• Kiva
• Lending Club
• Funding Circle
• SoMoLend

Directory of the Top Donation-Based Crowdfunding Sites: [Click to Tweet]

• Fundrazr
• GiveForward
• Pifworld
• Rally

Directory of the Top Equity-Based Crowdfunding Sites: [Click to Tweet]

• ASSOB
• Angel List
• AppsFunder
• CircleUp
• EarlyShares
• FundedbyMe
• GrowthGroup
• GrowVC
• I-Bankers Direct
• inCube Ventures
• MicroVentures
• OurCrowd
• Pozible – Australia
• Quirky

Directory of White-Label Crowdfunding Site Providers: [Click to Tweet]

• CrowdfundHQ
• CrowdfundingSite
• Crowd Fund Magic
• Crowdforce
• Crowdhoster
• Crowdtilt
• Fundrazr
• Hayduke Labs
• IgnitionDeck
• Invested.in
• Katipult
• Launcht
• Mimoona
• Selfstarter
• Thrinacia
• Towema.com

Directory of the Top Securities-Based White-Label Crowdfunding Site Providers: [Click to Tweet]

• Community Leader
• CrowdValley

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Shark Tank’s Barbara Corcoran Joins RockthePost Equity Crowdfunding Board of Directors

By Robert Hoskins

One of the leading equity crowdfunding platforms, RockThePost, announced that Barbara Corcoran, one of the Shark Tank‘s stars, will be joining its Board of Directors.  RockthePot is an investment crowdfunding platform that connects high quality entrepreneurs with accredited investors interested in investing in exciting new start-up companies. The site aims to be a resource for both entrepreneurs and investors by streamlining the capital raising lifecycle and providing crowdfunding support during the fundraising process.

Barbara Corcoran, Shark Tank Billionaire Joins RockthePost Crowdfunding Board of Directors

Via its services, RockThePost aims to be a resource for both entrepreneurs and investors by streamlining the capital raising lifecycle and providing the needed support during the fundraising process. The company’s mission is to democratize the fundraising practice.

In this regard, Barbara is one of the “Sharks” starring in the hit ABC TV show Shark Tank, where she has personally invested in over 20 startups. She converted a $1,000 loan into a $5 billion dollar real estate empire. In addition, Corcoran is a contributor to the NBC’s Today Show, and hosted “The Millionaire Broker with Barbara Corcoran ” on CNBC.

“It seemed like a natural fit for me to join RockThePost’s board and help them flourish in the brave new world of online capital raising. Startups are having a lot of difficulty getting their hands on the needed capital to start and grow their business and RockThePost changes all that. With the new Jumpstart Our Business Startups Act (“JOBS Act”) signed and once the SEC finalizes its rules, the days of start-up capital only coming from accredited investors are over. Now Joe and Sue from down the street will soon have the opportunity to also invest in startups and participate in deals previously only offered to accredited investors,” added Barbara.

With this new addition to the Board of Directors, RockThePost is establishing itself as one of the leaders in the equity crowdfunding space. On the platform, startups can raise money in 60-90 days, without having to do the offline roadshow of 8 months. They accommodate raises anywhere between $100K to $5M for early stage companies that have a minimum viable product with some market validation in the hardware, tech, healthcare and consumer product verticals.

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