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Tag Archives: Equity-based Crowdfunding

Crowdfundraiser.com Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Regulation A+, Mini-IPOs

4 May

Crowdfundraiser and its partners, including attorneys and accountants, will be prepared to provide Form 1-A filing and audit solutions for businesses looking to perform Tier 2 Regulation A+ crowdfunding

 By Robert Hoskins

Seattle, WashingtonCrowdfundraiser.com announced the addition of services geared toward companies looking to file Reg A+ offerings. Starting sometime in June, when the ability to file Regulation A+ becomes completely effective, Crowdfundraiser and its partners, including attorneys and accountants, will be prepared to provide Form 1-A filing and audit solutions for businesses looking to perform Tier 2 Regulation A+ crowdfunding.

Crowdfundraiser Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Reg A+ Mini-IPOs

Crowdfundraiser Readies Equity Crowdfunding Platform to Host Tier 2, Title IV, Reg A+ Mini-IPOs

Even though the full release of Regulation A+ will not occur until June, the team at Crowdfundraiser is ramping up to prepare several companies who’ve already expressed interest. Each offerer is intent on raising the maximum amount from the offering at $50 million. “We’re already seeing a great deal of interest in Regulation A+ offerings, but we’re being very selective on the types of companies and operators with whom we’re engaging,” says Jake Durrant, Managing Director.

Because the law itself confines the type, size and structure of each deal and company, there is already a narrow definition of the businesses Crowdfundraiser can work with. Furthermore, the Crowdfundraiser team has also opted to ensure the opportunities with which they assist have a high probability of being fully subscribed. “While we have the ability to scale our processes, we would prefer to work with the highest quality deals we can,” says Durrant. “Doing so increases the probability of success and creates the best situation for both investors and entrepreneurs alike.”

Crowdfundraiser is intent on only providing services for companies looking to do Tier 2 offerings with Regulation A+. “We feel Tier 1 Reg A offerings are not only too small, but are almost a non-starter due to the fact that Tier 1 offers don’t preempt the state Blue Sky Laws,” Durrant says. “This may pigeonhole us somewhat, but it helps define where we’ll play and where we won’t.”

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SEC Approves Regulation A+ Rules under Title IV of the JOBS Act that Pre-empts State Law and Paves the Way for Selling Up to $50 Million of Equity Crowdfunding Securities to Unaccredited Investors

25 Mar

There are no general solicitation restrictions so companies can freely advertise, market and publicize offerings at demo days, trade shows, mass media and via social media networks

 By Robert Hoskins

Washington, D.C. – The Securities and Exchange Commission adopted final rules unanimously to facilitate smaller companies’ access to capital.  The new rules provide investors with more investment choices.The new rules update and expand Title IV Regulation A+, an existing exemption from registration for smaller issuers of securities.

SEC Approves Regulation A+ Rules under Title IV of the JOBS Act

SEC Approves Regulation A+ Rules under Title IV of the JOBS Act

The rules are mandated by Title IV of the Jumpstart Our Business Startups (JOBS) Act.The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements.

“These new rules provide an effective, workable path to raising capital that also provides strong investor protections,” said SEC Chair Mary Jo White.  “It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”

The final rules, often referred to as Regulation A+, provide for two tiers of equity crowdfunding securities offerings:

  • Tier 1:  Offerings of securities of up to $20 million in a 12-month period, with not more than $6 million in offers by selling security-holders that are affiliates of the issuer; and
  • Tier 2: Offerings of securities of up to $50 million in a 12-month period, with not more than $15 million in offers by selling security-holders that are affiliates of the issuer.

Both Tiers are subject to certain basic requirements while Tier 2 offerings are also subject to additional disclosure and ongoing reporting requirements.

The final rules also provide for the preemption of state securities law registration and qualification requirements for securities offered or sold to “qualified purchasers” in Tier 2 offerings.

Tier 1 offerings will be subject to federal and state registration and qualification requirements, and issuers may take advantage of the coordinated review program developed by the North American Securities Administrators Association (NASAA).

The rules will be effective 60 days after publication in the Federal Register.

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Georgia Investors Get First Unaccredited, Equity-based Crowdfunding Investment Opportunity in the United States via Sterlingfunder.com

14 May

By Robert Hoskins

Unaccredited investors in Georgia will be the first Americans in history to begin investing in the equity-based Crowdfunding movement.  cMEcompete announced that it will be the first company in Georgia and the rest of the United States to issue equity through online crowdfunding to non-accredited investors. This means that any Georgia resident can go online and make an equity investment in a Georgia-based company quickly and easily through Sterlingfunder.com.

SterlingFunder.com George Unaccredited Equity-Based Crowdfunding Platform

SterlingFunder.com Georgia’s First Unaccredited Equity-Based Crowdfunding Platform

Until the federal government approved the JOBS act (Jumpstart Our Business Startups Act) a year ago, securities placement was governed by the SEC Act of 1933. The JOBS Act removes some of the constraints imposed by the SEC Act of 1933, yet the SEC has not yet implemented these changes. To give Georgians a head start rule makers approved The Invest Georgia Exemption in 2012 which makes it legal for non-accredited investors to make intrastate investments (Georgia resident investing in a Georgia company) through crowdfunding.

How is this different from Kickstarter, Indiegogo and AngelList? Kickstarter and Indiegogo provide crowdsourcing of non-equity contributions. AngelList requires all investors to be accredited and the transaction must occur through Second Market (not online).

“These are exciting times with state law makers removing barriers for startups,” says Dan Popovic, cMEcompete Founder. “Now it is time for Georgians to take advantage of this opportunity by investing in new Georgia businesses and fueling the State’s economic recovery. cMEcompete is proud to be the first platform for this historic opportunity.”

cMEcompete is a social platform for endurance events where participants discover like-minded communities, enroll, track accomplishments and get rewarded. With the growth of running/walking, cycling and triathlons, with over 35,000 such events in the US to choose from, we’ve identified a unique opportunity to create a social platform for organizations, clubs and individuals. Company and event sponsors provide the revenue stream and in turn receive increased brand awareness and increased engagement and participation.

“It’s a sound business model that has already proven to be very successful. The Atlanta BeltLine Running Series doubled participation and sponsorship rates in 2012 through the use of our platform,” says Jay Evans, cMEcompete co-Founder.

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