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Crowdfunding PR Rolls Out Title III Equity Crowdfunding 2-Month Prep-Work Programs to Launch More Successful Crowdfunding Campaigns

16 May

The crowdfunding prep work program helps entrepreneurs, startups and small businesses amass a large crowd of followers on social media and utilizes PR to generate hundreds of articles on leading newspapers, TV/radio stations, trade publications and leading blogs

By Robert Hoskins

Austin, Texas (May 16, 2016) – Want to learn how to launch a successful Title III crowdfunding campaign on one of top 100 equity crowdfunding sites? To help crowdfunders achieve this elusive goal, Crowdfunding PR (http://crowdfundingPR.wordpress.com) announced a special two-month Crowdfunding Prep Work Program that will significantly improve a crowdfunding campaign’s success rate by amplifying its founder’s social media profiles and by utilizing an effective crowdfunding PR campaign to generate hundreds of stories in the electronic news media prior to the crowdfunding campaign’s launch.

How to Plan a Successful Crowdfunding PR Campaign by Following this Secret Step-by-Step Process

How to Plan a Successful Crowdfunding PR Campaigns, a Step-by-Step Process

One of the biggest challenges that most crowdfunding campaigns face are weak social media credentials and the lack of a large group of social media followers that are needed to support crowdfunding campaigns with donations and/or investments. Building strong, professional Facebook, LinkedIn and Twitter profiles and amassing the largest possible group of followers on social media networks is crucial to conducting a successful crowdfunding campaign.

The second biggest task is generating stories on electronic news media outlets and blogs prior to launching a crowdfunding campaign. Not only can a well-orchestrated crowdfunding PR campaign generate hundreds of free, positive trade press articles to support the fundraising effort, but the same targeted, search engine optimized press releases will continue to drive new investors, potential customers and sales/distribution partners to the business long after the crowdfunding campaign ends.

“What many entrepreneurs and startups need to recognize is how important social media is in the world of crowdfunding,” said Robert Hoskins, Crowdfunding PR’s Director of Crowdfunding Campaigns. “The very first thing that an investor/donor does when they read through a crowdfunding profile they like is to look up the company and its team members on Facebook, LinkedIn and Twitter to check out their credentials. Having a strong resume on LinkedIn, lots of likes on Facebook and an army of followers on Twitter is crucial to determining the strength of the team and the likelihood that they have the tenacity and skill set to deliver on their crowdfunding campaign’s promises.”

“Next, most investors/donors will do a Google search to see what they can find online for both the company and its team members,” Hoskins continued. “With a two-month crowdfunding prep-work campaign there will be several pages of search engine results that link to the client’s website pages, their social media posts/profiles and the crowdfunding campaign’s prep pages that will point to their live fundraising campaign on Kickstarter.com, Indiegogo.com, GoFundMe.com or any of the other 2016 Top 100 Global Crowdfunding sites.”

If you would like to speak with a crowdfunding PR, social media and/or marketing expert regarding your crowdfunding campaign please call Robert Hoskins at (512) 627-6622 or fill out the contact form at: https://crowdfundingpr.wordpress.com/about-crowdfunding-pr-campaigns/ to setup a telephone consultation.

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Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-five years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
(512) 627-6622
@Crowdfunding_PR


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
Mr. Hoskins is one of the crowdfunding industry’s foremost crowdfunding advocates and has amassed a huge social media following that is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns. Due to the overwhelming demand from the general public for crowdfunding information, he empowers entrepreneurs with some of the internet’s most affordable ($20) online crowdfunding training classes, which provide insight to startups around the world on a 24 x 7 basis.
Mr. Hoskins adamantly believes that the crowdfunding industry will empower everyone in the United States to rediscover the possibility of living the American dream with a little hard work, a great business idea and the dedication to researching, planning and launching a well-thought-out crowdfunding campaign. He consults on a regular basis with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.

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SEC’s Proposed Amendments to Approve Nationwide Intrastate Crowdfunding and Raise Limit to $5 Million for Small Business

31 Oct

SEC’s Proposed Amendments to Rule 147 and 504 to Facilitate New Intrastate Crowdfunding and the Sale of Regional Securities Offerings

SEC Staff Proposes Amendments to Rules 147 and Reg. D.,504

SEC Staff Proposes Amendments to Securities Rules 147 and Reg. D. 504

 By Robert Hoskins

 SEC’s Proposed Actions for Title III Crowdfunding

The Securities and Exchange Commission is considering whether to propose amendments to Securities Act Rule 147 and Rule 504 of Regulation D.  The proposed amendments would be part of the Commission’s efforts to assist smaller companies with capital formation consistent with its investor protection mission.

Proposed Title III Crowdfunding Amendments

Proposed Amendments to Rule 147

The proposed amendments would modernize Rule 147 to permit companies to raise money from investors within their state without concurrently registering the offers and sales at the federal level.  The proposed amendments to Rule 147 would, among other things:

  • Eliminate the restriction on offers, while continuing to require that sales be made only to residents of the issuer’s state or territory.
  • Refine what it means to be an intrastate offering and ease some of the issuer eligibility requirements in the current rule.
  • Limit the availability of the exemption to offerings that are registered in-state or conducted under an exemption from state law registration that limits the amount of securities an issuer may sell to no more than $5 million in a 12-month period and imposes an investment limitation on investors.

Proposed Amendments to Rule 504

The proposed amendments to Rule 504 of Regulation D would increase the aggregate amount of securities that may be offered and sold under Rule 504 in any 12-month period from $1 million to $5 million and disqualify certain bad actors from participation in Rule 504 offerings.  The proposed rules would facilitate capital formation and increase investor protection in such offerings.

 

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What is Crowdfunding?

14 Mar

Crowdfunding sites and platforms are a great way for Universities and Colleges to generate extra revenue and market their school’s brand name on a global basis

By Robert Hoskins

What is Crowdfunding?

Crowdfunding is not a new concept. It has been used for thousands of years to collect small sums of money from the masses to pay for some of the most well known works in the world such as the Statue of Liberty.

The JOBS Act made it legal to use e-commerce sites to build crowdfunding profiles to collect money online from investors and utilize general solicitation  (advertising/marketing/PR) to raise money from the masses for the first time in 80 years. Funding that can be used provide seed investment capital to startups and help existing businesses expand their operations.

What States Have Legalized Equity Crowdfunding?

At the federal level, the final Title III equity crowdfunding rules guidelines have been stalled by the SEC, but at the state level Texas, Michigan, Georgia and 13 other states have passed Intrastate Crowdfunding Exemption rules that allow startups and businesses to raise money by selling equity shares online to raise seed investment capital. Other large states including CaliforniaIllinois, and Pennsylvania have proposed legislation, which is working its way through the legislative process.

Map of U.S. States that approved Intrastate Equity Crowdfunding Exemptions

Map of U.S. States that have approved Intrastate Equity Crowdfunding Exemptions

                                                Source: CrowdfundingLegalHub.com

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What is an Intrastate Equity Crowdfunding Exemption?

11 Mar

Due to the SEC’s Refusal to Pass Title III Crowdfunding Guidelines, which are Three Years Overdue, 31 States Have Passed or Plan to Pass Their Own Intrastate Equity Crowdfunding Exemptions

By Robert Hoskins

Intrastate Crowdfunding Exemptions

List of States with Approved Equity Crowdfunding Exemptions:

The good news is that there are currently 15 states, including Alabama, Colorado, Georgia, Idaho, Indiana, Kansas, Maine, Maryland, Massachusetts, Michigan, Oregon, Tennessee, Texas, Washington, and Wisconsin  that have approved Intrastate Crowdfunding Exemptions. This represents 33% of the United States population or  106.3 million people.

List of States with Pending Equity Crowdfunding Exemptions:

Another 16 states including Alaska, Arizona (not reflected on map), Arkansas, California, Connecticut, Illinois, Kentucky, New Jersey, New Mexico, Minnesota, Missouri, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia that have pending legislation.  This represents 38% of the United States population or 112.4 million people.

List of States Who are Asleep at the Wheel:

Apparently Delaware, Hawaii, Iowa, Louisiana, Mississippi, Montana, Nebraska, New Hampshire, New York, North Dakota, Ohio, Oklahoma, Puerto Rico, South Dakota, Vermont, West Virginia and Wyoming are either asleep at the wheel or do not have internet access. This represents 19.7% of the United States population or 63.6 million people.

List of States that have Rejected Equity Crowdfunding Exemptions:

Only Florida and North Carolina have decided not to help small business get access to investment capital. This represents 9% of the United States populations or 29.8 million people.

100% of Colleges and Universities Can Solicit Accredited Investors

This means that 100% of colleges and universities in the United States can solicit accredited investors nationwide using an equity crowdfunding platform to fund their incubator and accelerator programs.

On a state level, 33% can solicit non-accredited investors now with another 38% hopefully coming online by the end of 2015. If that happens equity crowdfunding will be legal in 31 states where 71% of all Americans live.

Map of U.S. States that approved Intrastate Equity Crowdfunding Exemptions

      Source: CrowdfundingLegalHub.com

 What are Non-Accredited Investors?

In states where an Intrastate Crowdfunding Exemption has been approved by the state securities board or the state legislature, anyone 18 years or older who lives in the same state can invest in local school accelerator’s equity crowdfunding opportunities regardless of income or assets.

This means that even schools in rural areas with zero funding to support startups companies or incubator or accelerator programs can setup an equity crowdfunding sites and begin soliciting angel and accredited investors all over the United States.

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Want to launch an equity crowdfunding site in your state?

Please fill out this form to get started:

Texas Crowdfunding Rules Pass Unanimously 4-0 in Austin; Texas Becomes Largest Equity Crowdfunding Market in the United States

22 Oct

More than 20 million unaccredited investors in Texas will soon be able to invest $5,000 per year in equity investments for small businesses raising under $1 million

By Robert Hoskins

Austin, Texas – Texas, the 2nd largest state by population in America, formally approved an  Intrastate Texas Crowdfunding Exemption Rule, on October 22, 2014, in Austin, Texas with a resounding 4-0 unanimous vote.  Why? Texas has been an economic engine because our state government officials have always understood how to provide an environment where businesses can make money, even during tough economic times.

Texas Approves Equity Crowdfunding Exemption for Non-Accredited Investors

Texas Approves Intrastate Equity Crowdfunding Exemption for Non-Accredited Investors in Texas

Even though the Texas State Securities Board doesn’t like tout this fact, Texas has around 26 to 29 million people living here, with around 20 million residents over the age of 18. The fact that the new Texas Equity Crowdfunding Rule allows these people to invest up to $5,000 per year in private equity investments is significant.

Do the math. What is 20 million times $5,000? To keep it simple, we’ll do the math for you, but we’ll be honest and let you know the number was too big our Smartphone’s calculator.  We had to break out an Excel spreadsheet to make sure this figure was correct.

The pool of potential investment capital that will be available in November 2014 to start new businesses or expand existing ones will be around $100 billion per year.  So over the next 5 years, Texas has pretty much said to the rest of America, we love business so much we have put together an economic development slush fund of $500 billion.

And guess what? It won’t cost taxpayers a single cent. Even better is the amount of small businesses that entrepreneurs will be able to launch during that time frame.

And guess what? It won’t be Wall Street investment bankers that will be controlling or driving the growth of Texas. It will be hard-working ranch hands, oil & gas field workers and blue-collar construction laborers who  understand what the value of a hard-earned dollar is and who will certainly be able to decide what types of products and services they want to see brought to market.

Why is this important?  Ft. Worth is booming. Dallas survived a telecom meltdown. Houston has never been short on energy. Austin is a technology mecca second only to Silicon Valley in California. What do you think $500 billion worth of investment capital will do the Texas economy?

It won’t happen over night, but neither did the oil boom. It was one thing to drill for oil and find it. It was another for the country to figure out what to do with oil and a wasteful substance called gasoline that no one knew what to do with because it was so volatile. But when Henry Ford won the right mass produce affordable Model T’s, Texas benefited from its early risk taking and bold move to start exploring and drilling for oil.

Did a lot of people drill wells that were dry where investors lost a lot of money? Yep. But the industry adjusted quickly on the fly and learned how to harness engineering, technology and sheer will power to weed out bad investments.

The same will be true of Equity Crowdfunding.  The power of the crowd to perform due diligence and the need for all equity investments to be done through a registered crowdfunding platform or portal will make it very hard for the Wolf of Wall Street types to do business. It won’t take the industry long to populate itself with crowdfunding classes, investment training programs and crowd checking services that investors can use to educate themselves and learn quickly how to vet deals.

What kind of deals can Texans expect? Franchises, high-technology, bio technology, clean technology, financial technology, real estate, oil and gas, defense technology, space exploration technology, etc.

Will people always make money? No, but deals like Oculus Rift might become common place.  In 2012, Oculus needed to raise money to bring a new type of 3D virtual reality computer gaming goggles to market. They did so successfully by raising $2.4 million via a Kickstarter campaign by pre-selling goggles for $300 a pair.

In May 2014, Facebook bought Oculus for $2 billion. There was an immediate uproar from Oculus supporters because they didn’t benefit from the buyout because supporters didn’t own any private equity stock.  It was a true crowdfunding dream come true. News stories say that a $300 investment for a pair of 3D goggles and one equity share would have paid return on investment of ~$45,000, but after two years of waiting equity investing is still not legal in the United States for unaccredited investors.

Who was to blame for supporters getting screwed? The bullseye can be pointed nowhere else but squarely on the Securities Exchange Commission (SEC), who has been holding America hostage during one of the biggest economic depressions America has ever seen.

The SEC can defy the President of United States and both Houses of Congress, but they are no match for hardworking Americans who are tired of watching the government run our country into the ground.

Honestly, can American’s skip four games of golf or quit buying scratch off lotto tickets for a month to take a wild risk on a crowdfunding investment? We sure can. And with some careful consideration, due diligence and investing in only products/service we understand, a new generation of micro venture capitalists will rise.

Why go to Las Vegas or continue to buy lotto tickets when you can shop for cool products and businesses online that you’d be willing to bet a couple of hundred bucks in order to make a fortune?  Suddenly the American dream will become a reality again.

Maybe not in the rest of America, but in Texas, entrepreneurs and startups will be able to go straight to the public with their investor decks and business plans. Just as Texas oil money, real estate and telecom/computer technology had a heavy influence in the development of the United States, so will the influence of crowdfunded millionaires that are sure follow the same rise to power as risky, gutsy Texas-based entrepreneurs such as Mark Cuban and Michael Dell.

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 Texas Equity Crowdfunding Exemption:

Passed 10/22/2014 – Texas State Securities Boards Approves Texas Crowdfunding Exemption Rules

Texas Crowdfunding News:

10/25/14 – Ft. Worth Star Telegram – Texas sets the stage for crowdfunding

10/23/14 – Austin Business Journal – State Securities Board OKs new Texas crowdfunding rules

10/23/14 – San Antonio Business Journal – Texas greenlights new rules for equity-based crowdfunding

10/23/14 – Silicon Hills – Texas Approves Equity-Based Crowdfunding Rules

10/23/14 – Dallas Morning News – Texas OKs rules allowing small businesses to raise funds online

09/23/14 – San Antonio Express News – Texas Crowdfunding for the little guys

09/16/14 – Times Realty News – Texas Crowdfunding Investments Set for Vote in September

08/12/14 – Ft. Worth Star Telegram – Texas set to allow crowdfunding investments for small businesses

08/27/14 – Houston Chronicle – Texas crowdfunding conference hopes to draw a crowd

07/21/14 – Crowdfunding PR News – Front Page PR Offers Texas Crowdfunding Sites Advertising, PR and Social Media Marketing Campaigns to Market Equity Shares to Potential Investors

List of States with Intrastate Exemption for Equity Crowdfunding:

         State                          Population

  1. Texas                           26,059,203
  2. Michigan                       9,883,360
  3. Georgia                           9,919,945
  4. Washington                   6,897,012
  5. Indiana                           6,537,334
  6. Tennessee                      6,495,978
  7. Maryland                       5,884,563
  8. Wisconsin                      5,726,398
  9. Alabama                         4,822,023
  10. Idaho                                1,595,728
  11. Kansas                             2,885,905
  12. Maine                                1,329,192

If you were a new company planning to launch a business, what state would you pick?

How to Make Money and Create Jobs by Teaching Crowdfunding Training Classes in Your City, State or Country

17 Jul

Did you know that 50% of the 48 contiguous United States don’t have one single crowdfunding training class? That means anyone with a marketing degree can make $49 to $399 per student teaching people how to launch crowdfunding campaigns

By Robert Hoskins

Austin, Texas – One thing that amazes me about the crowdfunding industry is the lack of training programs or community outreach programs that are available on a nationwide basis.  There are plenty of crowdfunding professionals that offer training programs, boot camps and workshops in major metropolitan areas, but what about cities with a population of less than 500,000 people?

How to Launch a Crowdfunding Training Program in Your City or State

Teach a Crowdfunding Training Class in Your City or State to Help Small Businesses to Create New Jobs

In most cases, cities with a population of 100,000 or more people usually have a Chamber of Commerce, Economic Development Council, SBA, SBDC,  and/or SCORE  offices that are setup specifically to help entrepreneurs and startups write business plans and find venture capital.

What surprises me the most about these organizations is that they don’t offer one single local crowdfunding training class on how to use crowdfunding  campaigns to raise money to get small businesses off the ground. Why is that?

There so many smart people out there that already teach business planning, business development, finance, marketing, etc.  Why not include a crowdfunding training class to teach entrepreneurs how to take advantage of the growing $10 billion crowdfunding industry?

Crowdfunding training classes, boot camps and workshops are charging anywhere from $49 for online classes to $399 for onsite conference training programs? Why not roll out these revenue generating programs to rural  America? Anyone familiar with the co-op business model should be able to quickly understand the concept of working with a whole community to share the cost of launching new businesses together.

 Anyone with a marketing background or public speaking experience should be able to read through the standard crowdfunding educational training program and with a little practice could teach millions of Americans how to launch successful crowdfunding campaigns to raise money to start new businesses.

To get a sense of the void of crowdfunding training classes available throughout the United States, please click on the state links below to see how many states have only one or zero crowdfunding training programs:

United States Crowdfunding Training Programs:

 

American Territories:

Loquidity to Offer Pre-Vetted Equity Crowdfunding Real Estate Deals as the Midwest’s Economy Bounces Back

13 Jul

Loquidity provides equity investors access to the burgeoning list of real estate opportunities throughout the midwest and central United States via the new equity crowdfunding platform

By Robert Hoskins

Grand Rapids, MichiganLoquidity.com announced the launch of its digital marketplace for premier real estate assets in the Central and Midwestern United States. The new debt and equity real estate equity crowdfunding platform will enable real estate professionals to publicly advertise their pre-vetted deals. The site will provide accredited investors unparalleled opportunity to shop one of the fastest-growing real estate markets in the country. Loquidity’s launch allows investors to capitalize on the Midwest’s continued economic recovery, including lower unemployment rates and increased manufacturing activity, which is helping drive strong demand for multifamily and commercial property development.

New Midwest Platform to Offer Pre-Vetted Real Estate Deals in the Midwest and Central United States as Region's Economy Bounces Back

New Midwest Platform to Offer Pre-Vetted Real Estate Deals in the Midwest and Central United States as Region’s Economy Bounces Back

Loquidity launches with a coveted $3.4 million deal, $1.4 million of which is being raised on the platform, for a 72-unit multifamily property in Grand Rapids, Mich. The city was recently named as the best place to own rental property in the U.S, according to All Property Management’s annual survey of 75 U.S. markets.

The platform’s founders are leveraging decades of combined real estate investing experience in the region to curate top-tier opportunities for accredited investors, who can contribute as little as $5,000 per deal. Loquidity will focus on real estate investments in Michigan, Illinois, Ohio, Wisconsin, Iowa, Nebraska, Minnesota, Missouri, Kentucky, Pennsylvania, Virginia, Tennessee, Indiana and Kansas.

“We understand the real estate markets in this region better than anyone,” said Jesse Clem, the co-founder and CEO of Loquidity with more than 15 years of experience as a senior leader within Fortune 500 corporations. “With a strong jobs market, a rebounding manufacturing sector and a thriving property market, the Midwest is becoming a prime target for real estate investors in the U.S. and internationally. Loquidity specializes in commercial and multifamily properties, which we believe will provide stable, risk-adjusted yields for our investors with significant potential for capital appreciation.”

Real estate sponsors seeking debt or equity financing for their projects can benefit from Loquidity’s growing network of active investors interested in the revitalization of their local communities. The Federal Reserve Banks of Cleveland and Chicago noted in an April report that demand is strong for multifamily housing and commercial property and that key industries in the region are growing steadily.

“A lot of people have overlooked the Midwest when searching for quality real estate assets,” said Loquidity COO Joe Elias, who has more than 15 years’ experience in real estate development in the region. “In reality, our deals represent an incredible value to investors as the employment rate and other economic variables improve. We also anticipate strong interest from native Mid-Westerners who want to help bolster their communities while realizing a financial return.”

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

22 Sep

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

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 AngelistCircleup, CrowdfunderFundersClubRockThePost 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

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