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Tag Archives: Non-Accredited Investors

SEC Issues Three-Year Research Study on Title III, Regulation Crowdfunding (Reg CF) Fundraising Campaigns

26 Jul

Leading Crowdfunding Industry Analyst Firm, Crowdfund Capital Advisors, States Now is the Time to Update the Regulation to Further Enable Capital Formation

Washington, DC – Recently the Securities and Exchange Commission (SEC) published a staff report on Regulation Crowdfunding (Reg CF), also known as Title III Crowdfunding.

The Commission, in the adopting rules, stated that the “staff will undertake to study and submit a research report to the Commission no later than three years following the effective date of Regulation Crowdfunding on the impact of the regulation on capital formation and investor protection.”

The report finds the size of market, while modest in comparison to the broader financial markets, is evolving and doing so without any material risk to investors. Crowdfund Capital Advisors (CCA) data and analysis were cited in 7 references throughout the report.

“The industry is evolving systematically and responsibly,” says CCA Principal Sherwood Neiss. “With the appropriate adjustments to the regulation we can further enable capital formation without risk to investors. The time is now for the SEC to act.”
Sherwood Neiss, Crowdfunding Capital Advisors, testifies before the SEC

Sherwood Neiss, Crowdfunding Capital Advisors, testifies at the SEC

The CCA data and references used by the SEC were attributed to analysis by CCA and published in VentureBeat as well as Crowdfund Insider. The data comes from CCA’s CCLEAR Database. CCLEAR is the leading Regulation Crowdfunding database that collects, cleans, aggregates and reports on all companies seeking funds via Regulation Crowdfunding as well as those doing parallel 506(c) offerings.

A 506(c) offering is an online accredited investor offering. A parallel offering allows an issuer to run two offerings side-by-side and group the accredited investors in one pool and the Reg CF investors in another. This type of offering is popular for issuers that seek to raise in excess of the $1.07M cap in Regulation Crowdfunding.

Issuers that seek to raise funds via Reg CF must file a Form C (a form filed by a company (issuer) with the SEC before starting to raise capital and discloses financial information for its current and prior fiscal years) as well as a Form C-U (a progress report that an issuer files that discloses total capital raised).

Data that the SEC does not collect in either of these disclosures includes information like industry, a breakdown on the cost of the offering, daily change in capital commitments, daily changes in investors and information on a company’s valuation.

CCLEAR collects all this missing data which allows for more detailed analysis of the market including which industries are most popular with the crowd, which regions of the country have the lowest/highest overall valuations, what industries the crowd is most interested in supporting, etc.

An entire section of the report titled “Cost to issuers of undertaking a crowdfunding offering” came directly from research CCA did with issuers successful with Regulation Crowdfunding.

A key finding from our research, which was highlighted in the report, was that “the total cost of creating a campaign page, issuer disclosures, film, and video, and hiring a marketing firm, a lawyer, and an accountant amounts to approximately 5.3% of the amount raised.”

This average was based on feedback from 81 issuers. “This amount is substantially less than what a typical issuer would incur in a Regulation D offering,” says CCA principal Sherwood Neiss “and is a key reason why more companies should be looking at Reg CF as an attractive pathway to raising funds.”

The report provides a detailed look at how Regulation Crowdfunding has performed through December, 2018. (For people interested in data through today’s date, you can find it on CCLEAR’s Daily Dashboard – see below for the latest data).

“Unlike opponents who said regulated crowdfunding would open the floodgates to fraud, we have yet to see fraud materialize,” says Neiss.

“This is because there are easier ways to defraud investors than to come up with an idea for a business, incorporate it under federal laws, convince a funding portal to list you, spend hundreds of hours and thousands of dollars trying to bring your friends, family and followers to the campaign page, and then hitting 100% of your funding target or the commitments get returned.

Add on top of this the hundreds of discerning eyes picking apart a campaign in the comments section. These types of ‘built-in investor protections don’t exist in other parts of the private capital markets.”

Multiple recommendations were included in the report on how to improve Regulation Crowdfunding. The SEC cited a US treasury Report entitled “A Financial System That Creates Economic Opportunities.”

The Report recommends:

  1. Allowing single-purpose crowdfunding vehicles advised by a registered investment adviser;
  2. Waiving certain crowdfunding offering limits for accredited investors;
  3. Amending certain crowdfunding investment limits by other investors;
  4. Modifying the Exchange Act’s Section 12(g) exemption;
  5. And increasing the limit on how much can be raised through crowdfunding from $1M to $5M.

CCA’s principals were interviewed and cited in the Treasury report. The Fed’s recommendations were a summary of CCA’s more detailed recommendations as requested.

“The industry is evolving systematically and responsibly,” ended Neiss. “With the appropriate adjustments to the regulation we can further enable capital formation without risk to investors. The time is now for the SEC to act.”

# # #

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.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding PR” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
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GoSun Exhibits Fuel-Free Solar Stove at Consumer Electronics (CE) 2017 to Support Equity Crowdfunding Campaign

29 Jun

GoSun is introducing the world’s first fuel-free solar powered grill, utilizing energy from the sun to bake, boil, fry or steam a meal for six in less than one hour, at the Metropolitan Pavilion during CE Week 2017, July 12 and 13 in New York City

By Robert HoskinsCrowdfunding PR

New York City, New York – In order to expand its clean-tech business, the GoSun outdoor solar grill is undertaking an equity crowdfunding raise with the assistance of SeedInvest that for as little as $500, anyone can own a piece of GoSun and its solar powered future. GoSun will be tapping is growing crowd of customers to support its crowdfunding campaign with more 11,000+ stoves sold in +60 countries, and major distribution agreements signed with major retailers such as ACE Hardware, Brookstone, Cabela’s, REI, Home Depot and in third world countries where there is no electricity, propane or natural gas to cook with.

GoSun is introducing the world’s first fuel-free solar powered grill, utilizing energy from the sun to bake, boil, fry or steam a meal for six in less than one hour

GoSun is introducing the world’s first fuel-free solar powered grill, utilizing free, green solar energy from the sun to bake, boil, fry or steam a meal for a family of people six in less than one hour

GoSun’s line of innovative solar cookstoves can bake, boil, or fry almost anything, just by using the power of the Sun’s solar energy. It’s clean and safe: there are no fossil fuels or wood, no smoke or emissions, no hot coals, no open flames, no explosive gas, and no grease or soot, which are major detriments in many undeveloped countries.

“According to the UN, over 3 billion people, are still cooking on fuels, such as Kerosene or wood, that are harmful to their health, contributing to deforested landscapes and a cycle of poverty,” explained Patrick Sherwin, GoSun Founder and CEO. “GoSun is committed to making game-changing clean cooking devices to power the good life in both developed and developing markets. The newly released GoSun Grill is designed to provide a convenient and accessible way to cook with free, clean, green solar energy while promoting sustainability and healthy cooking.”

How GoSun Solar Stove Works
The GoSun solar stoves incorporate a proprietary vacuum tube technology that allows for fast cooking, portability, simple operation, and safe and clean cooking, without propane or charcoal. Sunlight is focused by parabolic reflectors onto the vacuum tube that converts up to 80% of solar radiation into heat that builds up to temperatures of 550°F or 288°C. Despite the high cooking temperatures, the exterior of the grill remains cool. In addition, the vacuum tube also doubles as an insulator, keeping the food hot even with clouds, or in the freezing cold conditions.

How Much Does the GoSun Solar Stove Cost?
GoSun’s cookers are available online at REI, Home Depot, Brookstone or via GoSun’s website, at prices ranging from $279 to $799.

Solar Electric Hybrid Grill
“While we are excited about everything the grill can do, we realized it was lacking one capability – cooking at night,” stated Sherwin. “So we are also developing a solar electric hybrid grill that stores the sun’s energy enabling cooking at night.”

The storage solution includes a Photovoltaic (PV) panel to capture the energy during the day and an option electrical heating element to enable cooking at night. By placing the electrical heating element on the grill and leveraging the vacuum tube’s insulation capability, the hybrid grill cooks using only a fraction of the energy of an electric stove. The hybrid version of the grill will be available in 2018.

GoSun is an innovative manufacturer of solar cookers that can heat up to 550°F and cook a meal in as little as 20 minutes with no fuel other than the sun’s  free, green solar energy. What started as a simple inspiration has grown into the leading name in fuel-free cooking, delivering thousands of stoves in more than 60 countries. Visit www.GoSunStove.com for more information.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

New Cannabis Compliance Company Now Raising Seed Stage Capital via Equity Crowdfunding Campaign on GrowthFountain.com

27 Jun

Herbal Compliance Co.’s Reg. CF Investment Opportunity Allows Investors to Invest in the Booming Marijuana Industry to Help Recreational and Medical Marijuana Companies Stay within Legal Guidelines in 26 Different States throughout the United States

By Robert Hoskins, Crowdfunding PR

Horseshoe Lake, Arkansas – The Herbal Compliance Co. announced the launch of its compliance consulting services for legal medical cannabis and hemp businesses. This unique company will also be partnering with GrowthFountain to$1 million by selling equity through a unique form of investor fundraising called Title III, Regulation Crowdfunding (Reg CF).

Twenty-six states and the District of Columbia currently have laws broadly legalizing marijuana in some form

Twenty-six states and DC currently have laws broadly legalizing marijuana in some form

Herbal Compliance fills a need created by differences in marijuana legislation at the state and federal levels. While it is currently legal in 26 states and the District of Columbia to grow and sell marijuana for medical purposes, it is still illegal on a federal level, resulting in thousands of conflicts between state and federal regulations.

New Cannabis Compliance Company Launches Public Funding Effort with GrowthFountain

New Cannabis Compliance Company Launches Public Crowdfunding Effort with GrowthFountain

“Understanding the laws governing medical marijuana and hemp is our core competency,” explains Chuck Carpenter, Herbal Compliance’s President. “But we also offer other types of business consulting like inventory management, branding, and employee education. Our mission is to help companies in this new area of American enterprise to grow and thrive.”

To fully fund their startup, Herbal Compliance is using a new form of funding enabled by recent changes in securities law in the JOBS Act called Regulation Crowdfunding. The rules for this sort of investing went into effect May 2016, allowing non-accredited investors to participate in a funding round for a private company for the first time in history.

“We’re excited to help Herbal Compliance raise the money they need to grow,” says Abe Orden, GrowthFountain’s Operations Manager. “For the first time in 80 years, average Americans now have the opportunity to support and invest in local businesses and entrepreneurs they believe in.”

Herbal Compliance’s campaign started on June 6, 2017 and will continue through Oct. 4, 2017. Their aim is to raise between $100,000 and $1 million with a minimum buy-in of $100 per investor.

The Herbal Compliance Co. provides companies in the legal medical cannabis and hemp business with services to ensure that they remain compliant with the law. Services include design and buildout, equipment fulfillment, regulator compliance, remote inventory control and reporting, vendor relationships, brand and marketing, and tax management and education.

GrowthFountain Capital LLC is a Regulation Crowdfunding platform aimed at simplifying fundraising and helping businesses build collateral. GrowthFountain is registered with the SEC and a member of FINRA.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

New Equity Crowdfunding Site, Global Sports, Offers Fans Investment Opportunity to Buy Equity Shares in the Favorite Sports Teams and Clubs 

16 Jun

Site provides sports startups, products and charities in the sports sector with a dedicated place to raise money quickly for their campaigns, but also delivers access to one of the largest, most profitable and fastest growing industries

By Robert Hoskins

New York, NY – Global Sports Inc. is a sports crowdfunding platform founded in 2016, that is dedicated specifically to sports-related campaigns. Co-founders Ben and Tom Smith were aware that the sports industry has traditionally been privately owned, making it difficult for fans to invest in the sports they love and presenting hurdles for sports startups looking to raise capital. They decided that it was time for a change.

“We’re setting out to connect sports fans with sports startups, products and athletes seeking to raise capital,” explained Ben Smith. “The crowdfunding industry has matured and evolved over the past few years and we see sports fans, who are analytical in nature, as a natural fit for the practice of crowdfunding.”

New Equity Crowdfunding Site, Global Sports, Offers Fans Investment Opportunity to Buy Equity Shares in the Favorite Sports Teams and Clubs

New Equity Crowdfunding Site, Global Sports, Offers Accredited and Non-Accredited Fans Investment Opportunities to Buy Equity Shares in Their Favorite Sports Teams and Clubs

The Global Sports platform gives all fans, who are passionate about sports, the power to choose and directly fund campaigns in the sports industry. As a sports fan, you will have the ability to invest in cutting edge sports products, companies, athletes and teams.

The team is excited to announce that they have created a two-sided financial market. Their service not only provides sports startups, products and charities in the sports sector with a dedicated place to raise money quickly for their campaigns, but also delivers access to one of the largest, most profitable and fastest growing industries in the world to both accredited and non-accredited investors and sports fans.

By bringing these two groups together, Global Sports aims to redefine the landscape (and requirements) for crowdfunding in the sports industry. By leveraging technology, their goal is to ensure the most rewarding experience for their users.

In the near future, the Global Sports Inc. team plans to offer equity campaigns which will allow athletes, sports startups, and clubs a sports crowdfunding site to raise money in return for equity ownership.

“At Global Sports, we believe an industry as large as the sports sector deserves a dedicated crowdfunding platform. From football to eSports the opportunities are endless!” said Tom Smith, “If you have any suggestions that would help us improve your experience we would love to hear from you, please contact us.”

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

 

SpaceoutVR Launches Equity Crowdfunding Campaign on Netcapital.com to Raise Money for a New High Tech Mobile Virtual Reality Company

8 Jun

The team has had an exciting quarter leading up to this campaign, with several big milestones including a seed funding round with $365k invested

By Robert Hoskins

Troy, NY – SpaceoutVR, Inc. announced the launch of an equity crowdfunding campaign on Netcapital.coml to raise money for a Mobile Virtual Reality software company. Their product, Spaceout.VR is a free to play Social VR MMO for iOS & Android that monetizes with upgrades and features for entertainment, gaming and communications.

SpaceoutVR Launches Equity Crowdfunding Campaign on Netcapital.com to Raise Money for a New High Tech Mobile Virtual Reality Company

SpaceoutVR Launches Equity Crowdfunding Campaign on Netcapital.com to Raise Money for a New High Tech Mobile Virtual Reality Company

“We are pleased to offer our friends and fans an opportunity to grow with our company,” said SpaceoutVR’s CEO, V. Owen Bush. “Equity crowdfunding is how the future is funded and SpaceoutVR is the future of immersive entertainment.”

The VR MMO engages players with fun VR experiences. Players aim to win by building the biggest Space Station in VR. Using machine learning and social media analysis, the MMO populates personal spaces with the digital content that players love. A social feed allows players to meet, share, and leave messages for each other. A gamified user economy will drive the revenue of SpaceoutVR, Inc.

With two years of operations, over 250,000 app downloads and over $1.2M invested, the startup is on the launchpad to success. The team has had an exciting quarter leading up to this campaign, with several big milestones including a seed funding round with $365k invested.

SpaceoutVR has been selected as a top featured VR app for the Google Play Store and smashed new records in engagement with an average session of 18.33 mins in May. The team launched Spaceout.VR v 1.3.1 with a Social VR Feed and in-app 360 Photo Sharing.  Spaceout.VR is now a top featured app on the Google Cardboard VR Library.

On June 29, 2017, SpaceoutVR won the CEG Technology Award “Judges’ Choice for Technology”. They were also awarded a free booth at both TechCrunch Disrupt in May and at the Northside Festival, June 7-9 in New York.

The company was co-founded by four senior executives in Gaming, Entertainment and Digital Marketing. SpaceoutVR, Inc. hopes to become a defining brand in mass-market consumer VR, and they have the experience behind them to make it happen.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

 

GridShare Launches New Equity Crowdfunding Site to Provide Investment Opportunities for Solar, Wind and other Types Renewable Energy in the United States’ Booming Clean-Technology Industry

8 Jun

The GridShare Equity Crowdfunding Platform allows accredited and non-accredited investors to make very affordable investments in solar, wind and other types of renewable energy projects and clean-tech companies to raise debt or equity, opening up the renewable energy industry to a larger pool of investors

By Robert Hoskins

Portland, Oregon – GridShare.com announced that it has launched its new independent platform offering debt and equity crowdfunding investments that anyone in the United States as well as accredited investors can provide seed stage funding and venture capital to help renewable energy projects and clean-tech companies fund startups, expand businesses and launch new green energy power projects. The clean tech online investment platform allows investors to independently engage with green project owners to learn about and finance deals that will  help reduce America’s carbon footprint and slow down rapidly advancing global warning.

GridShare enables everyday people to invest in renewable energy projects and clean tech companies

GridShare enables everyday people to invest in renewable energy projects and clean tech companies

“Raising money has been a huge impediment to the growth of the capital-intensive renewable energy industry,” said Jack Jacobs, CEO and Co-Founder of GridShare. “Now, with GridShare’s help, a project developer or clean-tech venture can tap into a new funding channel and ultimately spend less time fundraising and more time focusing on its core business.”

GridShare is funding portal authorized by the SEC and FINRA to conduct securities offerings under SEC Regulation Crowdfunding. Initial offerings on GridShare.com include a $250,000 secured debt offering for a community solar project, a $350,000 equity offering for a floating solar project and a $100,000 secured debt offering for a community wind project.

Floating on water, this 1.2 MW solar project in wine country (Sonoma County, California) is part of nearly 20 MW of floating solar projects awarded to Pristine Sun

Floating on water, this 1.2 MegaWatt solar project in wine country (Sonoma County, California) is part of nearly 20 MegaWatts of floating solar projects awarded to Pristine Sun

Initial offerings on GridShare.com include a $100,000 secured debt offering for a community wind project

Offerings on GridShare.com include a $100,000 secured debt offering for a community wind project

Posting a project on GridShare is free and easy. Once the GridShare team approves the project, it will be published online. Investors will then have the opportunity to review the project details, and invest online. With respect to US offerings, GridShare earns a commission from the offeror only if its funding goal is fully achieved. GridShare also offers optional services, such as assistance in preparing listing materials, filing forms, facilitating investor webinars, and managing the security offerings.

Potential investors can peruse investment opportunities in a variety of renewable energy sectors. GridShare also intends to host funding opportunities for energy efficiency initiatives and early-stage clean technology ventures.

“For too long, large financial institutions and accredited investors have controlled the financing for renewable energy. Finally, project developers like Pristine Sun can rely on GridShare to facilitate innovative solar investments available to all investors,” said Troy Helming, President of Pristine Sun, a major developer of solar projects in the US, and the sponsor of two listings currently hosted on GridShare.com. “Pristine Sun can now get support from the crowd to complete its solar projects, and the crowd can now own part of our projects and participate in the growing market for clean energy in the United States.”

GridShare is an online crowdfunding platform for renewable energy and clean-tech projects registered with the SEC and FINRA, which enables everyday people to invest in renewable energy projects and clean-tech companies based in the US.  By significantly expanding the funding options available to business owners and project developers, GridShare opens up the renewable energy industry to a much wider audience of non-accredited investors.

The platform is a clean technology agnostic, posting investment opportunities from all types of renewable energy projects and clean-tech companies. GridShare allows renewable energy projects and clean-tech companies to raise debt or equity from investors. By diversifying the available investment opportunities, GridShare offers a more inclusive environment for non-accredited and accredited investors alike.

GridShare International, LLC, which is not registered with the SEC,  but does assist issuers in countries other than the United States in listing securities offerings in their own countries.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

HelloMD Receives $200k Boost for Dual “Form C, Series A” & “Reg. CF” Crowdfunding Raise of $1,216,314 with 27 Days Left

6 Jun

HelloMD launched its crowdfunding offering on the SeedInvest platform last month and has already received over $1,216,314 from over 795 investors

By Robert Hoskins

San Francisco, California – HelloMD – one of the nation’s largest communities of medical cannabis patients – announced that it had received an investment of $200,000 from SeedInvest’s “Selections Fund.” The money will count towards the amount HelloMD is targeting to raise from the crowdfunding platform, as well as from accredited investors in its funding round.

HelloMD launched its crowdfunding offering on the SeedInvest platform last month and has already received over $1,216,314 from over 795 investors.

HelloMD launched its crowdfunding offering on the SeedInvest platform last month and has already received over $$1,216,314 from over 795 investors

HelloMD launched its crowdfunding offering on the SeedInvest platform last month and has already received over $1,216,314 from over 795 investors for app that markets marijuana products/services

“We like what HelloMD has accomplished thus far and feel it’s well positioned to capitalize as an early leader in a rapidly growing market,” stated Ryan Feit, SeedInvest CEO and Co-Founder. “Our Selections Fund invests alongside individual angel investors in some of the most promising companies on our platform,” he continued.

Since launching service in California two years ago, HelloMD has developed a rapid following among medical marijuana patients seeking to remedy things like anxiety, stress and chronic pain to more serious medical issues like cancer and epilepsy. The site connects patients, doctors, retailers and brands in an online community where advice on product selection, health & wellness and anything related to medical cannabis can be discovered.

“We are on a mission to create the largest medical cannabis community and the first national retailer of cannabis products,” stated Mark Hadfield, HelloMD’s CEO. “We are thrilled that SeedInvest recognizes the value HelloMD brings to patients everywhere, and has decided to demonstrate that with a sizable investment of their own,” he continued.

HelloMD’s rapid growth has been fueled by its extensive library of proprietary patient generated medical information (question & answers about medical cannabis) as well as articles, videos and other unique content. Additionally, over 400 business partners (retailers and cannabis brands) have partnered with the site to make information available to customers seeking information on their use of cannabis. The company plans to use the proceeds of the equity round to expand it service offerings across all 30 cannabis legal states, as well as internationally.

HelloMD is the leading digital healthcare platform for medical cannabis patients. The service allows for easy, convenient online video access to physicians for medical cannabis consultations, recommendations to qualifying patients, product advice and more.

SeedInvest is a leading equity crowdfunding platform that provides individual investors with access to pre-vetted startup investment opportunities.  SeedInvest has funded over 160 startups and boasts a rapidly growing network of over 160,000 investors.  SeedInvest has had over 13,000 startups apply to raise capital since inception and has only accepted 1% of those companies to feature on the platform.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.

SEC Issues Progress Report on United States Title III Equity Crowdfunding Growth Rate

15 Mar

Approximately 163 separate offerings were filed by 156 issuers, seeking a total of approximately $18 million

By Robert Hoskins

Washington, DC – The SEC just released a white paper entitled, U.S. securities-based crowdfunding under Title III of the JOBS Act, which analyzes crowdfunded offerings during the first six months following May 16, 2016 when Title III, Regulation Crowdfunding become official. The SEC’s white paper, which was prepared for Scott Bauguess, the Acting Chief Economist and Acting Director of the Division of Economic and Risk Analysis (DERA), noted that the majority equity crowdfunding offerings to date have not utilized Regulation D as much as predicted.

Top 20 Title III Equity Crowdfunding Sites in U.S.

The white paper does go into great detail about five largest Title III crowdfunding portals based on the number of offerings, which accounted for 71% of the offerings launched during 2016.  The five largest Title III crowdfunding sites  also accounted for 64% of the total amount of funds raised. And while more 20 crowdfunding sites were listed, most of the offering activity was limited to 25% of active platforms in the Title III crowdfunding marketplace. And, if you ran the numbers for completed offerings, you would see that the top five largest intermediaries accounted for more than 90% of the market share.

The table below low shows the list of the Top Performing Title III Crowdfunding Portals sorted on the number of initiated offerings and then by the target amounts of the initiated offerings, excluding offerings withdrawn as of December 31, 2016.

Top 20 Title III Equity Crowdfunding Sites Ranked by Number of Offerings

Top 20 Title III Equity Crowdfunding Sites Ranked by Number of Offerings

 

Most Successful Types of Title III Equity Crowdfunding Campaigns

Many people want to know what the types of Title III crowdfunding campaigns were the most successful. Preferred Equity led the pack at 36%, followed bySimple Agreements for Future Equity at 26%, Debt at 20%, Units at 7%, Convertible Notes at 6% and Miscellaneous accounted for the remaining 5%, which included Revenue Sharing and Membership / LLC Interests.

Distribution of Title III Equity Crowdfunding Offerings

Distribution of Title III Equity Crowdfunding Offerings

 

Top States for Launching Title III Equity Crowdfunding Campaigns

Another interesting way to look at growing crowdfunding industry is to examine what states launched the most successful Title III Equity Crowdfunding Campaigns.  In the table below you can see that California/Silicon Valley launched the most Title III crowdfunding campaigns, followed closely by Texas/Silicon Hills at 19%, New York at 14%, Massachusetts and Illinois tying at 9%, Delaware, Florida, New Jersey, Oregon, and Pennsylvania bringing up the back to the pack, all with 5%.

Geographic Distribution of Title III Equity Crowdfunding

States with the Most Title III Equity Crowdfunding Campaigns

 

How Many Reg. D and Title IV, Reg. A+ Crowdfunding Offerings Result?

Because many industry experts have stated their concerns that the SEC’s decision to severely restrict the general solicitation guidelines with regards to advertising their crowdfunding deals to the masses of non-accredited investors, the white paper also took a close look at how many Title III Regulation Crowdfunding Campaigns had previously or subsequently conducted an offering under Regulation D or Regulation A.

As shown in the table below, as of January 15, 2017, approximately 15% of offerings initiated during 2016 (excluding withdrawn offerings) were by issuers that have also reported offerings under Regulation D either before or after the initial crowdfunding filing. And, approximately 3% of issuers have issued Regulation A+ filings as of January 15, 2017.

Among crowdfunding issuers, approximately 12.9% of offerings were by issuers that had filed the first Form D notice prior to the first crowdfunding filing and approximately 2.5% of offerings involved issuers that had filed a Form D notice after the first crowdfunding filing. For about 8.6% of offerings, excluding withdrawn crowdfunding offerings, a Form D filing was made within one calendar year before or after the initial crowdfunding filing. Consistent with their young age, the SEC determined that the majority of the crowdfunding issuers were more likely to be new startups rather than “fallen angels.”

Overall, these results suggest that crowdfunding is attracting issuers that have not extensively used other private offering exemptions, such as Regulation D, which is otherwise a very popular private offering exemption among similarly sized issuers as those initially availing themselves of the Crowdfunding market. The initial evidence is points to the fact that Title III, Regulation Crowdfunding is indeed providing a new source of capital for entrepreneurial and small businesses that may not otherwise have had access to capital through alternative capital raising channels.

Form D and Title IV, Reg A+ Equity Crowdfunding Offerings

Form D and Title IV, Reg A+ Equity Crowdfunding Offerings

 

The white paper also made a point of covering the following facts and figures.:

  • There were 163 separate offerings by 156 issuers, seeking a total of approximately $18 million, excluding withdrawn offerings. The median offering amount was $53,000 and the average offering amount was approximately $110,000. However, almost all of the offerings accepted over-subscriptions up to a higher amount (typically close to $1 million) for a total amount of approximately $101 million.
  • As of January 15, 2017, approximately $10 million in proceeds was raised in 33 offerings by issuers filing a Form C-U. The median amount raised in these offerings was $171,000 and the average amount raised was approximately $303,000.
  • For offerings initiated in 2016, were withdrawn by issuers or associated with an intermediary whose FINRA membership was terminated and funding portal registration withdrawn. These offerings sought a total of approximately $2.3 million (approximately $19.5 million if over-subscriptions are included).
  • Most of the offerings solicited in all states.
  • The most popular type of security was equity, followed by “simple agreements for future equity” and debt.
  • The most popular state of incorporation for issuers was Delaware and the most popular principal place of business for issuers was California.
  • The median issuer had under $50,000 in assets, under $5,000 in cash, $10,000 in debt, no revenues, and three employees. Approximately 40% of the issuers reported positive revenue and approximately 9% of the issuers reported a net profit in the most recent fiscal year. Among the issuers that reported non-zero assets in the prior fiscal year, the median growth rate was approximately 15%.
  • 21 intermediaries, including 13 funding portals and 8 broker-dealers, were involved in the offerings. As of December 31, 2016, funding portals have registered with the SEC and FINRA and one funding portal had its FINRA membership terminated and withdrew its SEC registration. The median intermediary percentage fee was 5%, and intermediaries took a financial interest in the issuer in approximately 16% of the offerings.

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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.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.

RealtyShares Equity Crowdfunding Site Raises $32.9 Million for Midwest Commercial Real Estate Projects in Illinois, Ohio and Wisconsin

8 Mar

Buckeye commercial real estate investment opportunities are showing a significant level of activity, with $12.25 million raised for 30 deals in Ohio, concentrating around the Cincinnati and Cleveland metropolitan areas

By Robert Hoskins

Chicago, Illinois – RealtyShares is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. For example, the equity crowdfunding site for commercial real estate deals has released new data showing the extent of crowdfunded investments in several Midwest real estate markets.

 Infographic for Commercial Real Estate Crowdfunding

Commercial real estate developers, sponsors and borrowers in Ohio, Wisconsin, Michigan, Indiana and Illinois have raised $32.9 million to date from RealtyShares’ network of investors

To date, commercial real estate developers, sponsors and borrowers in Ohio, Wisconsin, Michigan, Indiana and Illinois have raised $32.9 million to date from RealtyShares’ network of investors, offering a source of financing for real estate projects by leveraging technology to connect potential investors with expertly vetted real estate deals.

“RealtyShares fits into a world in which it is more difficult than in previous decades to secure a loan for development from a bank, and where technology is creating possibilities for people across the country to assess information and connect with one another,” said Gerald Fogelson, Advisor to RealtyShares, CEO of Fogelson Group and an inductee of the Chicago Real Estate Hall of Fame. He recently joined the team bringing decades of real estate knowledge and experience to the emerging tech company.

Thus far 114 deals have been funded in the region through RealtyShares, with an average deal price of $288,000. Deals of up to $1.5 million have been financed in both Columbus, Ohio, and Chicago, Ill. Anchoring RealtyShares’ position in the region, $14 million has been raised for 53 deals in Illinois, with several investors targeting properties in and around Chicago. Buckeyes are also showing a significant level of activity, with $12.25 million raised for 30 deals in Ohio, concentrating around the Cincinnati and Cleveland areas.

“What we’re seeing now is that investors throughout the United States are interested in investing in markets like the Midwest, where small businesses and entrepreneurs are looking beyond their friends and family networks to raise money,” said Fogelson. “RealtyShares makes all that possible.”

Platinum Real Estate Holdings has been one of the leading deal sponsors in the Midwest, with twelve Michigan properties funded through RealtyShares platform totaling $378,000.

“Our business is built on acquiring and flipping low-cost homes in the metropolitan Detroit area on a short time frame,” said Anthony Rea, owner of Platinum. “RealtyShares has enabled us to raise financing quicker and more efficiently than traditional bank loans, which is a major asset in a market with low inventory and high demand from buyers.”

Hamilton Real Estate Capital is also among the Midwest developers that have funded multiple real estate projects through the RealtyShares marketplace. “Working with RealtyShares has given us access to a new group of investors in a straightforward and quick process,” Eli Glanz, Principal at Hamilton confirmed.

The Midwest continues to be a target market, especially in states where the company’s rates are competitive against traditional financing options.

“The Midwest is a very hot market,” said Kelly McDonald, the Vice President of Residential Debt at RealtyShares. “There is substantial inventory and a concentration of older neighborhoods that could use updates. We’re seeing homes that have been owned for 30 years that have a lot of potential.”

To date, the RealtyShares network of investors has funded upwards of $300 million across more than 550 investment opportunities on the platform, funding residential and commercial projects in 35 states.

Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.

RealtyShares offers securities through North Capital Private Securities Corporation, member FINRA/SIPC.

For more information on how to become a real estate investor or to seek capital through the RealtyShares marketplace, please visit www.realtyshares.com.

# # #

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.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.

New SEC Rules Allow Companies to Raise Up to $5 Million for Businesses Incorporated Out of State as well as from Investors Who Live Out of State

28 Oct

SEC Adopts New Securities Act Rule 147A and Changes to Reg D Rule 504 to Facilitate Intrastate and Regional Securities Offerings

Washington, D.C. – The Securities and Exchange Commission today adopted final rules that modernize how companies can raise money to fund their businesses through intrastate and small offerings while maintaining investor protections.“These final rules, while continuing to provide investor protections, update and expand the capital raising avenues for smaller companies, allowing them to more fully take advantage of changes in technology and business practices,” said SEC Chair Mary Jo White.

“These final rules, while continuing to provide investor protections, update and expand the capital raising avenues for smaller companies, allowing them to more fully take advantage of changes in technology and business practices,” said SEC Chair Mary Jo White.

“These final rules, while continuing to provide investor protections, update and expand the capital raising avenues for smaller companies, allowing them to more fully take advantage of changes in technology and business practices,” said SEC Chair Mary Jo White.

The final rules amend Securities Act Rule 147 to modernize the safe harbor under Section 3(a)(11) of the Securities Act, so issuers may continue to use state law exemptions that are conditioned upon compliance with both Section 3(a)(11) and Rule 147.  The final rules also establish a new intrastate offering exemption, Securities Act Rule 147A, that further accommodates offers accessible to out-of-state residents and companies that are incorporated or organized out-of-state.

To facilitate capital formation through regional offerings, the final rules amend Rule 504 of Regulation D under the Securities Act to increase the aggregate amount of securities that may be offered and sold from $1 million to $5 million.  The rules also apply bad actor disqualifications to Rule 504 offerings to provide additional investor protection, consistent with other rules in Regulation D.  In light of the changes to Rule 504, the final rules repeal Rule 505 of Regulation D.

Amended Rule 147 and new Rule 147A will be effective 150 days after publication in the Federal Register.  Amended Rule 504 will be effective 60 days after publication in the Federal Register.  The repeal of Rule 505 will be effective 180 days after publication in the Federal Register.

 

Highlights of the SEC Final Rules

New Rule 147A and Amendments to Rule 147

The adoption of new Rule 147A and the amendments to Securities Act Rule 147 would update and modernize the existing intrastate offering framework that permits companies to raise money from investors within their state without concurrently registering the offers and sales at the federal level.

Amended Rule 147 would remain a safe harbor under Section 3(a)(11) of the Securities Act, so that issuers may continue to use the rule for securities offerings relying on current state law exemptions.  New Rule 147A would be substantially identical to Rule 147 except that it would allow offers to be accessible to out-of-state residents and for companies to be incorporated or organized out-of-state.

Both new Rule 147A and amended Rule 147 would include the following provisions:

  • A requirement that the issuer has its “principal place of business” in-state and satisfies at least one “doing business” requirement that would demonstrate the in-state nature of the issuer’s business
  • A new “reasonable belief” standard for issuers to rely on in determining the residence of the purchaser at the time of the sale of securities
  • A requirement that issuers obtain a written representation from each purchaser as to residency
  • A limit on resales to persons residing within the state or territory of the offering for a period of six months from the date of the sale by the issuer to the purchaser
  • An integration safe harbor that would include any prior offers or sales of securities by the issuer made under another provision, as well as certain subsequent offers or sales of securities by the issuer occurring after the completion of the offering
  • Legend requirements to offerees and purchasers about the limits on resales

Amendments to Rule 504 and Repeal of Rule 505

Rule 504 of Regulation D is an exemption from registration under the Securities Act for offers and sales of up to $1 million of securities in a 12-month period, provided that the issuer is not an Exchange Act reporting company, investment company, or blank check company.  The rule also imposes certain conditions on the offers and sales, with limited exceptions made for offers and sales made in accordance with specified types of state registration provisions and exemptions.  The amendments to Rule 504 would retain the existing framework, while increasing 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 disqualifying certain bad actors from participation in Rule 504 offerings.  The final rules also would repeal Rule 505, which permits offerings of up to $5 million annually that must be sold solely to accredited investors or no more than 35 non-accredited investors.

The Commission adopted Rule 147 in 1974 as a safe harbor to a statutory intrastate exemption, Section 3(a)(11), which was included in the Securities Act upon its adoption in 1933.  Commenters, market participants and state regulators have indicated that the combined effect of the statutory limitation on offers to persons residing in the same state or territory as the issuer and the prescriptive eligibility requirements of Rule 147 limit the availability of the exemption for companies that would otherwise conduct intrastate offerings.

The $1 million aggregate offering limit in Rule 504 has been in place since 1988.

Effective Date

Amended Rule 147 and new Rule 147A would become effective 150 days after publication in the Federal Register.  Amended Rule 504 would become effective 60 days after publication in the Federal Register.  The repeal of Rule 505 would become effective 180 days after publication in the Federal Register.

# # #

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.
Robert Hoskins
(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.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
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