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Tag Archives: Jumpstart Our Business Startup Act

U.S. House of Representatives Passes Congressman Patrick McHenry JOBS Act (Crowdfunding) Enforcement Bill

22 May

By Robert Hoskins

A bipartisan majority of the House of Representatives yesterday voted 416-6 in favor of passing a bill proposed by Congressman Patrick McHenry (NC-10) to enforce a deadline on JOBS Act legislation signed into law last year.

U.S. House of Representatives Passes Congressman Patric McHenry #JOBS Act (#Crowdfunding) Enforcement Bill

U.S. House of Representatives Passes Congressman Patrick McHenry #JOBS Act (#Crowdfunding) Enforcement Bill

“To cultivate a stronger economy, we have to build a more vibrant marketplace for our startups and entrepreneurs, which is what this legislation is all about,” said Congressman McHenry.   “It’s critical that the SEC finally start to implement the JOBS Act – a bipartisan bill that was signed into law more than a year ago.  Small businesses and entrepreneurs are starving for capital, and this legislation simply sets a firm deadline for the SEC to get its job done.”

Specifically, H.R. 701 requires the SEC to implement Title IV of the JOBS Act by October 31. Title IV requires the SEC to adopt or amend regulations that encourage capital formation for small businesses through a currently under-used provision of securities law known as Regulation A.

The House originally passed Title IV of the JOBS Act to help small businesses with wide bipartisan support, 421-1.

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Arizona Attorney Publishes New Book on Equity Crowdfunding: “Equity Crowdfunding: Transforming Customers into Loyal Owners

18 May

Equity Crowdfunding: Transforming Customers into Loyal Owners now available from Amazon.com

By Robert Hoskins

Arizona Attorney Jonathan Frutkin of The Frutkin Law Firm recently published a new book about this new source of finance, known as “equity crowdfunding.” According to Frutkin, the same power of online funding will soon let local companies raise capital online – and more importantly, make customers into owners, increasing the market share of businesses that successfully leverage this new opportunity.

Jonathan Frutkin, CEO of Cricca Funding

Jonathan Frutkin, CEO of Cricca Funding

The book, titled Equity Crowdfunding: Transforming Customers into Loyal Owners, provides insight into how business owners can turn their customers into loyal customers while raising money for their company. It is now available for print and digital purchase on Amazon.com.

“Equity crowdfunding is the single largest marketing opportunity for local businesses to transform mere customers into loyal owners,” Frutkin said when describing the concept. “By resetting the relationship between corporation and patron, the new rules for crowdfunding are going to fundamentally shift the way entrepreneurs think about both raising capital and creating long-term engagements with their customers.”

Interest in crowdfunding drastically increased after President Barack Obama signed the JOBS Act (Jumpstart our Business Startups) in 2012 legalizing equity crowdfunding, subject to new rules being agreed by regulators. A total of $2.7 billion was provided through crowdfunding by individual donors last year, according to reports by research firm Massolution — up 81% from 2011. This space is only going to heat up further when SEC rules for the JOBS Act are released this year, paving the way for equity crowdfunding.

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Small Business & Entrepreneurship Council Laments the SEC’s Blockade of Crowdfunding Capital Access Opportunities

8 Apr

By Robert Hoskins

A leading organization that represents entrepreneurs and small business owners expressed frustration with the dawdling pace of Jumpstart Our Business Start Up Act  (JOBS Act) implementation by the Securities and Exchange Commission (SEC).  The JOBS Act was signed by President Barack Obama one year ago today.  The SEC has not issued one rule to implement this important law that will improve capital access for entrepreneurs. Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan , who was at the bill signing ceremony and whose group helped to spark the legislation and lead it to passage, said the SEC’s performance in missing key deadlines is inexcusable.

Small Business & Entrrepreneurship Council Laments SEC's Blockade to Crowdfunding Capital Access

Small Business & Entrrepreneurship Council Laments SEC’s Blockade to Crowdfunding Capital Access

“The SEC is undermining this important capital formation initiative that was supported by an overwhelming majority in Congress. Entrepreneurs and high-potential businesses that can bring our nation back to robust levels of job creation and growth are being undermined. There really is no excuse for the SEC’s lack of progress,” said Kerrigan.

Among other changes to outdated securities laws, the JOBS Act makes debt and equity-based crowdfunding legal.  In late February, SBE Council led a daylong series of briefings in Washington to update White House officials, Capitol Hill staff and the SEC on the state of the industry and the investor protections that have been built out within this transparent marketplace for accessing capital.  Crowdfunding experts and entrepreneurs also made it clear that access to capital remains a critical issue for small business owners.

“While lending standards have eased some, according to the latest Fed senior loan officer survey, getting credit remains a difficult task for small businesses. For good measure, it’s worth noting that venture capital investment took a notable dip in 2012. Access to financing remains the biggest hurdle for most entrepreneurs, which makes crowdfunding a critical option in the marketplace,” noted SBE Council Chief Economist Raymond Keating .

At her U.S. Senate nomination hearings for SEC Chair last month, Mary Jo White pledged to make JOBS Act implementation a priority once she steps into her new role.  The Senate Banking Committee overwhelmingly approved her nomination, and the full Senate is expected to vote following their return next week.

“We hope Mary Jo White will move quickly to dislodge the proposed rules. After all, these are still proposals open to public comment.  Our international competitors are going with our ideas in the crowdfunding space and are now moving ahead of us,” said Kerrigan.

She noted that Italy passed a bill in the fall of 2012, and has already issued it first rulemakings this week.  The UK approved a crowdfunding platform, and debt-based crowdfunding is up and running as well.

Crowdfunding Professional Association (CfPA) to Host 2nd Annual Crowdfund Investing Innovation Forum in August

4 Apr

By Robert Hoskins

The Crowdfunding Professional Association (CfPA) will host its 2nd Annual Crowdfund Investing Innovation Forum on August 8-9, 2013 in Orlando, FL. The forum has established itself as the must-attend conference for leaders, entrepreneurs, investors and policy makers who are committed to fostering capital formation and job creation.

Crowdfunding Professional Association Hosts Key Industry Event

Crowdfunding Professional Association Hosts Crowdfunding trade show in Florida

Luan Cox, CfPA Governing Board Member and Founder of Crowdnetic, states, “Our vision is simple, yet ambitious—we want to educate the crowd on how to raise capital, spurring job growth for startup and emerging companies. We are dedicated to redefining success for businesses and the economy through facilitating a vibrant, credible and growing crowdfunding community globally.”

Presented by the association of crowdfunding pioneers that helped write the JOBS Act, expert financial services professionals, and innovative services providers, current issues will be addressed through intimate discussions and breakout sessions.

The CfPA is the industry’s pioneering, nonprofit trade organization established by the thought leaders who founded the crowdfund investing movement in the United States, those who wrote the framework for President Obama’s Jumpstart Our Business Startup Act (JOBS Act) and the dedicated individuals who lobbied for its passage, which was signed into law on April 5th, 2012.

The Forum, sponsored by CrowdClear and Ellenoff Grossman & Schole LLP, will address key topics through a unique and interactive format, including crowd investing and Wall Street, the legal and regulatory environment and the crowdfunding ecosystem and innovative technologies.

CfPA’s 2nd Annual Crowdfund Investing Innovation Forum will spark change, challenge and debate conventional thinking and unleash new perspectives in the pursuit of real solutions.

2nd Annual Crowdfund Investing Innovation Forum
Location: Caribe Royale Orlando, Orlando, Florida
Date: August 8 – 9, 2013
Price: $395 – Early Bird Special for the first 200 attendees, $489 – Post Early Bird

The Crowdfunding Professional Association (CfPA) is dedicated to facilitating a vibrant, credible and growing Crowdfunding community while advocating for an industry view versus a single company perspective. Uniting a broad-based coalition of industry participants, the association is committed to ensuring the credible development of the industry, including a commitment to the highest ethical standards.

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