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Tag Archives: Deal Flow

Setting Up a New College – University Equity Investment Crowdfunding Site to Take Advantage of the Growing U.S. Investor Network Suffering from a Lack of Deal Flow

14 Mar

Schools that Launch Equity Crowdfunding Sites Now Will Learn How to Market Investment Opportunities to Accredited Investors and Get a Head Start on the Vast Amount of Money that Will Flood the U.S. when the SEC Finally Approves Title III Crowdfunding Guidelines

By Robert Hoskins

Investor Surplus, Deal Flow Shortage

Believe it or not, there is a growing surplus of angel investors, accredited investors and venture capitalists that have the money to invest in new startups, but cannot find enough good deals being circulated by entrepreneurs and startups that need investment startup capital.  

A recent member of the San Francisco Angel Group member recently said that there many startups in San Francisco currently receiving seed investment that really are not worthy of seed investment capital, but are getting lucky because there is a surplus of money and a shortage of good deals. 

The good news is that college and universities can now take advantage of a new rule passed as a part of the JOBS Act, which approved something known as General Solicitation. For the past 80 years it has been illegal to advertise or market private equity deals to the general public, but that ban has been lifted. 

In November 2014, a new SEC rule was passed that makes it possible to advertise private placement memorandums (PPMs) to approximately 8.7 million accredited investors throughout the United States and abroad.  This is great news because only about 3% of all accredited investors are active angel investors. This means that 97%  of this group has never been approached by startups seeking investment capital. 

This means that any school can setup an equity crowdfunding platform and start marketing their local community’s entrepreneur and startup business plans to a nationwide or global network of accredited investors.  Once a platform is setup, investors with the right credentials can search through the platform’s online equity investment opportunities on a 24x 7 basis.

And then, hopefully in October 2015, the SEC also will pass the final rules that open up Title III equity crowdfunding to every adult in the United States who is 18 years or older. When that happens, the same equity crowdfunding site will have the ability market deals to every adult in America or approximately 180 million new investors.  Take that with a grain of salt because the new Title III rules are three years overdue, but if they do make it to the Federal Registry there will be flood of money seeking great business plans and startups who need startup capital.

In order to leverage the growing pool of accredited investors now, colleges and universities should begin the process of setting up a streamlined equity crowdfunding ecosystem as soon as possible. It will open up schools to a nationwide and/or global network of angel investors now and help them get a head start on the vast amount of money that will flood the marketplace when the SEC finally approves the Title III crowdfunding guidelines.

Learn more about crowdfunding:

 

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I-Banker Direct Augments Deal Flow for Accredited Investors Seeking Crowdfunding Investment Opportunities

18 May

I-Bankers Direct Launches US-Based Dealer/Broker Equity Crowdfunding Platform

By Robert Hoskins

I-Bankers Direct announced the launch of a web-based crowdfunding platform designed to transform the process of investing in private and public growth-stage companies. The platform, www.ibankersdirect.com, allows individuals to invest as little as $5,000 directly in selected small-cap growth businesses, pairing accredited investors with a growing list of emerging companies with investment capital needs.

“What they lacked is access to a reliable source of deals. We also know from experience how challenging it can be for small, growing businesses to raise capital. I-Bankers Direct was created to address these needs.”

“What they lacked is access to a reliable source of deals. We also know from experience how challenging it can be for small, growing businesses to raise capital. I-Bankers Direct was created to address these needs.”

With 24/7 online access to offering documents, management conference calls, company slide decks, video presentations and other decision-making support, individual investors now have the ability to evaluate and invest in promising business opportunities, based on their own schedule and from any Internet-connected device.

“It was clear to us that there are many high-net-worth individual investors in the marketplace who have both the ability and the desire to invest in small, dynamic companies,” said I-Bankers Direct President John Kallassy. “What they lacked is access to a reliable source of deals. We also know from experience how challenging it can be for small, growing businesses to raise capital. I-Bankers Direct was created to address these needs.”

I-Bankers Direct has set itself apart from other entrants in the crowdfunding field by focusing on transactions which appeal both to individual and institutional investors at the same time, thus transforming the capital-raising landscape for early-stage businesses. To that end, I-Bankers Direct has assembled an experienced team of investment professionals*, software innovators and ecommerce experts committed to transforming the capital-raising landscape for growth-stage businesses.

CEO Mike McCrory explains, “We’ve harnessed the power of the Internet—and leveraged the experience our team has gained helping companies access billions of dollars in capital over the past eighteen years. Our platform, recently capitalized with $1.5 million of institutional and private investment, provides accredited individual investors, angel investors, venture capitalists and private equity investors with 24/7 access to investments previously unavailable to them. It’s a win for everyone.”

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