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Tag Archives: SEC regulations

What Equity Crowdfunding Campaign Types Are Best for Startups and Small Companies – Title III or Title IV, Reg A+ ?

3 Aug

A Quick Guide to Launching Title III vs. Title IV Equity Crowdfunding Campaigns

By Robert Hoskins

VerifyInvestor.com's Guide to JOBS Act Crowdfunding Options and Rules

VerifyInvestor.com’s Guide to JOBS Act Crowdfunding Options and Rules

Trying to Determine What Equity Crowdfunding Option is the Best Method of Fundraising to Fund Entrepreneurs and Startup Companies?

Here are some simple questions that you might ask yourself when planning a fundraising campaign to raise money in order to launch a new startup or expand an existing business:

  • Maximum Offering for Equity Crowdfunding

How much money do you want to raise? And what step of the crowdfunding escalator does your company currently reside?

  1. Donation Crowdfunding – For ideas or concepts, entrepreneurs should consider Donation Crowdfunding and try to raise $10,000 or less with the goal of putting together a business plan, developing a website and begin working on prototypes or service beta programs.
  2. Rewards Crowdfunding – Once a prototype and/or beta test program has been developed and is ready to be tested for marketplace acceptance, startups should consider using Rewards/Perks Crowdfunding and set a goal of raising $25,000 to $100,000, but should have a crowdfunding PR and social media marketing campaign designed to raise up to $1 million or more based on marketplace demand. This crowdfunding step should be targeted to raise enough money to pay for the first manufacturing production run or minimum viable product (MVP) and provide a sufficient marketing budget to continue selling the produce/service and gaining marketplace traction once the crowdfunding campaign concludes.
  3. Equity Crowdfunding – Depending on the marketplace success, the final step is using equity crowdfunding to raise sufficient capital to launch a business on a regional, national or international level. Similar to an Initial Public Offering, the company can offer investors convertible notes, debt, revenue sharing or equity shares via a Title II (Rule 506 and Rule 144A offering), Title III offering or Title IV offering, which each has its own set of rules briefly outlined in the chart above.  Title III is capped at $1 million every 12 months, Title IV is capped at $50 million every 12 months and Title II can raise unlimited funding with no time limit.
  4. Crowdfunding Escalator – This entire process is called a crowdfunding escalator by many in the crowdfunding industry, which is a step-by-step process that allows a creative ideas to work their way into becoming successful and thriving businesses via larger and larger crowdfunding campaigns as a company grows, matures and gains marketplace traction.
  • Investor Types for Equity Crowdfunding

Do you want to target 8.7 million sophisticated accredited investors or open the offering up to 188 million non-accredited, novice investors throughout the U.S. (and Canada)? 

  1. Accredited Investors – Only about 3% of the accredited investors are active investors in the United States because until 2013 it was illegal to use general solicitation to reach this target audience and most deals were channel through registered broker dealers. The key is to know how to reach these angel investors and venture capitalists with advertising, email marketing, publicity and targeted social media marketing.
  2. Non-Accredited Investors – The other 97% of the population falls into the novice investor category that is literally an untapped target audience because it has been illegal to market fundraising campaigns to this segment of the population since 1934.  Title III and Title IV crowdfunding are designed to educate this new class of investors, teach them how to vet deals and allow them to make the same type of early stage investment usually reserved for venture capitalists by carefully researching the Form C disclosure documents for Title III and Form 1-A disclosure documents for Title IV, Reg. A+ offerings. And now that marketing offerings to this audience is legal, success is only limited by a company’s marketing budget.
  • Method of Offerings for Equity Crowdfunding

Do you want to utilize a registered Title III crowdfunding portal or regular website combined with general solicitation (advertising/PR/social media)? 

  1. Title III/Advertising Offering Terms is Prohibited – In contrast to Rule 506(c) offerings, which permits general solicitation if certain conditions are satisfied, an eligible issuer or persons acting on its behalf cannot advertise, directly or indirectly, the terms of a crowdfunding offering.  However, an issuer can publish notices (for example, in newspapers or on social media sites or the issuer’s website) that direct investors to the intermediary’s platform and contain only limited factual information about the offering and the issuer.   Despite this advertising prohibition, an issuer (or persons acting on its behalf) may communicate with investors about the offering terms through communication channels provided on the intermediary’s platform if the issuer identifies itself (or persons acting on its behalf identify their affiliation with the issuer) in all such communications.
  2. Title IV Utilizing General Solicitation – Title IV offerings are allowed to use any website/portal combined with advertising, email marketing, PR and social media to market the terms of their offerings in order to attract new investors, which means investors throughout the entire United States and Canada.
VerifyInvestor.com's Guide to JOBS Act Crowdfunding Options and Rules - Page 2

VerifyInvestor.com’s Guide to JOBS Act Crowdfunding Options and Rules – Page 2

 

# # #

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 consults on a regular basis with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
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.

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POMM Inc. Quickly Raises $812,220 With Title IV, Reg A+ Equity Crowdfunding Campaign; Investors See Huge Opportunity to Tap $81.5 Billion Mobile Accessories Marketplace With Smartphone Security Case

18 Jul

Due to an Overwhelming Response From Equity Investors, POMM’s Management Team Is Now Seeking a High-Technology Investor Relations Team With Smartphone & Cyber Security Experience

By Robert Hoskins

San Francisco, CaliforniaPOMM Inc. announced that its equity crowdfunding has successfully raised more than $812,220 for its recently launched Title IV, Reg. A+ equity investment crowdfunding campaign. Accredited and non-accredited investors are recognizing the investment opportunity made possible by the growing demand from consumers and businesses that want privacy and security for their smartphones and to guard against hackers that try to pry into cell phones and Internet backup storage clouds to steal sensitive texts, emails, photos, videos, medical records and credit card information.

POMM Inc. Equity Crowdfunding Investment Opportunties Start at $500 for Biometric Smartphone Security Cases

POMM Inc. Equity Crowdfunding Investment Opportunties Start at $500 for Biometric Smartphone Security Cases

“According to a Smartphone Case Segmentation Research Study more than 75% of all buyers purchase an impact resistant case to protect their cell phones. In addition many users also like to buy smartphone cases that provide either extra battery life for longer time periods between charging or that offer much higher data storage capacity,” said David Freidenberg, POMM’s CEO. “And with the growing problem of malware being downloaded accidentally from popular cell phone apps or hackers breaking into internet backup storage clouds, more and more customers are now seeking better privacy and security measures that guard against hacking attacks. Our POMM delivers all of these benefits and more.”

The POMM is a combined software and hardware solution that enables smartphone users to launch a set of secured applications to manage and share private information. It is implemented via a mini quad-core computer embedded in the smartphone case offering biometric and biologic authentication layers; significant secure storage area and a 50% increase in battery life.

In 2015, the U.S. smartphone industry alone sold $81.5 billion of mobile add-on accessories to a marketplace that has over 2 billion iPhone and Android cell phone customers. Considering the fact that more than 70% of the world’s population will own a smartphone by 2020, it is easy for investors to see the huge growth potential for selling POMM Biometric Smartphone Security Cases to new and existing cell phone owners on a worldwide basis.

The Manufacturer’s Suggested Retail Price (MSRP) for the POMM Smartphone Security Case will be $200 for 64GB of storage, $275 for 128GB, and $350 for the 256GB and commercial quantities for volume buyers that should be available in Q4 2016.

To generate a 10x return-on-investment for investors over the next 3 to 5 years, POMM would only need to sell 500,000 units at $200 per unit or less than 285,715 units at $350. Once POMM units are carried by Verizon, AT&T, T-Mobile and Sprint and other wireless carriers, dealers and resellers as well as big box consumer electronics retailers like BestBuy, Wal-Mart, Amazon, Apple Stores, Target, CDW and others, POMM will be positioned to issue a very attractive Initial Public Offering (IPO).

Equity crowdfunding investment opportunities start at $500 and require reading through the full Title IV, Reg. A+ Equity Crowdfunding Offering Circular located at http://pommoffering.com or call David Freidenberg at (917) 300-0651.

Read more at:
http://www.marketwired.com/press-release/pomm-inc-quickly-raises-601714-with-equity-crowdfunding-campaign-investors-see-huge-2143059.htm 

# # #

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.

Top 10 Title III, Regulation Crowdfunding Offerings Ranked on the Amount of Crowdfunding Raised

18 May

Searching for the Hottest New Title III, Regulation Crowdfunding Investment Opportunities?

For fun, we thought we would keep track of the first wave to Title III, Regulation Crowdfunding Offerings to see who has raised the most money to date. The current crowdfunding campaigns are ranked in order by the amount of money they have raised as of May 24, 2016 at 4:00 pm.

After the first week, it looks like crowdfunding campaigns with lower investment amounts far outpaced larger investment requirements.  The same is true of lower crowdfunding investment goals. For example, GameTree has a minimum investment of $100 and a fundraising goal of $100,000 and barely two weeks into their campaign they are 90% funded.

If you’d like shop around and make your first non-accredited investment in a Title III, Regulation CF offering, please review from the offers listed below.

You might also check out their company websites, their social media credentials on Facebook, LinkedIn and Twitter and then Google their founders names and companies to see what they have done to promote their company in the news media.

It will be easy to see what management teams have done the proper prep work, planned effective marketing campaigns and the others that haven’t even been able to put together a simple company website.

If they can’t build a simple website, how in the world can they run a successful business?

Here is also a quick snapshot of what Title III Crowdfunding Platforms have raised the most money:

  1.   WeFunder.com            $243,871
  2.   StartEngine                  $142,602
  3.   SeedInvest                     $74,800
  4.   NextSeed                        $26,900

Total: $461,273


1. The Legion M Entertainment (media company)

Crowdfunding Platform: WeFunder

Amount Raised: $120,611

2. Taxa Biotechnologies (genetic plant engineers)

Crowdfunding Platform: WeFunder

Amount Raised:  $111,860

3. MF Fire (an app-drive, low emissions wood stove)

Crowdfunding Platform: SeedInvest

Amount Raised: $40,900

4. Native Hostel Austin (Luxury hostel in Austin

Crowdfunding Platform: NextSeed

Amount Raised: $26,900

5. Bloomery SweetShine (distillery)

Crowdfunding Platform: StartEngine

Amount Raised: $35,700

 

6. GameTree (Social network for gamers)

Crowdfunding Platform: StartEngine

Amount Raised:  $90,360

7. Treasure State Internet (fiber optic installation)

Crowdfunding Platform: WeFunder

Amount Raised:  $8,800

8. StartMart Cleveland (Coworking space)

Crowdfunding Platform: SeedInvest

Amount Raised: $7,000

9. Gigmor (Connecting bands with venues and gigs)

Crowdfunding Platform: StartEngine

Amount Raised: $14,905

10. Urban Juncture (developing commercial real estate)

Platform: WeFunder

Amount Raised: $2,600

11. Graphic Armor (personalized condoms)

Crowdfunding Platform: StartEngine

Amount Raised: $1,636

12. NextRX Inc (Medical marijuana network pass)

Crowdfunding Platform: StartEngine

Amount Raised:  $0

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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.

# # #

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.

What New Title III Investors Should Be Trying to Learn Before Making Their First Crowdfunding Investment

4 May

Whether You Are One of the 188 Million New Non-Accredited Investors or a Small Startup or Existing Business that Wants to Learn More about Issuing a Title III or Title IV Reg. A+ Equity Crowdfunding Campaign You Should Read through All of the Information Below

By Robert Hoskins

Austin, Texas (May 2, 2016) – The best way to educate yourself on the Title III investment/investing marketplace is to perform a thorough competitive analysis on all of the Top Equity Crowdfunding Sites and/or the Top Reg. A+ Equity Crowdfunding Sites in the United States, the United Kingdom and Israel, which is where most of the top crowdfunding platforms are based.

A Crowdfunding Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms

A Crowdfunding Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms

Our Top 100 Crowdfunding Lists are based on website traffic, which should be a first step in determining how many eyes are being delivered by every site.  This will highlight how many crowdfunding campaigns are being launched as well as how many investors are visiting the equity crowdfunding site on a monthly basis.

There has been a great deal of content generated that covers that the Title III Equity Crowdfunding rules that will begin on May 16, 2016 so I will skip repeating the basic information. Up until the past 12-months not much has been written about how to evaluate the up an coming Title III equity crowdfunding deals.

So the purpose of this article is provide lots or relevant documentation that has been written by leading university legal departments and law firms that will soon be guiding investors and issuers through the process of issuing Title III and Title IV Reg. A+ equity crowdfunding securities.

Great Equity Crowdfunding Research Articles:

1. The Coming ‘Transformation’ in Private Capital Markets – This article provides a really good overview of the equity crowdfunding industry to date.


2. Duke Law School – The Social Network and the Crowdfund Act: Zuckerberg, Saverin, and Venture Capitalists’ Dilution of the Crowd – This provides really good a good overview of how to avoid stock holder dilution and making sure that early stockholders are included fair and justly in every exit strategy. It also provides examples of how Zuckerberg diluted one of his business partners right out of the Facebook fortune.

TABLE OF CONTENTS

    1. CROWDFUNDING OVERVIEW
      A. The Five Models of Crowdfunding
      B. Examples of Crowdfunding
      C. The Transformative Power of Crowdfunding
    2. POLITICAL INFLUENCES
      A. Securities-Law Prohibitions on Crowdfunding
      B. Democratic Push for Crowdfunding
      C. Crowdfunding under the JOBS Act
    3. THEORETICAL TENSIONS
      A. Paternalistic Impulses: The Rule 504 Lesson
      B. Securities Regulation: Disclosure vs. Merit Review
    4. VENTURE CAPITALIST ELITES AND THE MASSES
      A. Vertical and Horizontal Risks
      B. Downside and Upside Risks
      1. Financing Rounds, Exits, and Protecting Crowdfunders

a. Price-Based Anti-Dilution Protection
b. Shares-Based Anti-Dilution Protection
c. Tag-Along Rights
d. Preemptive Rights

5. QUALITATIVE PROTECTIONS FOR CROWDFUNDERS

A. Contractual Provisions
B. Venture Capital–Deal-Terms Disclosure Table
C. Congressional and Regulatory Action

CONCLUSION


3. Harvard Business Law Review – Equity Crowdfunding: The Real and the Illusory Exemption – This document has a good section that discusses investment syndicates and why novice investors should follow lead angel investors until they get the hang of assessing crowdfunding securities risk.

TABLE OF CONTENTS INTRODUCTION

I. BACKGROUND

A. An introduction to crowdfunding
B. The rationale for a new exemption
C. The legislative history of the retail crowdfunding exemption
D. The quiet compromise

II. TWO CROWDFUNDING EXEMPTIONS COMPARED

A. Affordability in small offerings
B. Access to potential investors
C. Investor protection
D. Summary and implications

III. AN INCENTIVES-BASED THEORY OF INVESTOR PROTECTION

A. The public theory and retail crowdfunding
B. The private theory and accredited crowdfunding
C. A theory to describe the spectrum

IV. ASSESSING POTENTIAL SEC ACTION

A. Pooled investments managed by a lead investor
B. Public company regulation
C. Verification
D. Liquidity risk
E. Integration and aggregation
F. Substantial compliance
G. The accredited investor definition

V. RECOMMENDATIONS

A. Strengthen accredited investor bargaining power
B. Encourage retail investors to piggyback
C. Harmonize the resale and substantial compliance rules
D. Generate empirical data and conduct a special study

CONCLUSION


4. David M. Freedman and Matthew R. Nutting – Equity Crowdfunding for Investors: A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Termswhich I have not read, but the following paragraph descriptions definitely look worth reading while learning the the Title III equity crowdfunding securities investment process.

Preface: The New Angel Investors

In 1977, Mike Markkula became the first angel investor in Apple Computer. His $80,000 stake in Apple grew into about $200 million when the company went public three years later. Few opportunities can generate personal wealth as profoundly as being a founder or early investor in a startup that achieves that sort of grand success. Before 2012, however, angel investing was strictly limited to wealthy and extremely well connected people. Thanks to Title III of the JOBS Act of 2012, tens of millions of average investors will, for the first time in several decades, have an opportunity to invest in growing startups and early-stage companies via equity crowdfunding portals. This book covers not only Title III crowdfunding, but Regulation D offering platforms and intrastate securities exemptions (in at least 18 states) as well.

Chapter 1: The Foundations of Online Crowdfunding

Internet crowdfunding gained traction around 2003, starting with rewards-based platforms like ArtistShare, Kickstarter, and Indiegogo. They were followed by donation-based platforms like GoFundMe. Securities (debt- and equity-based) offering platforms launched around 2011 in the United States. Equity offering platforms were still open to accredited investors only, however. The JOBS (Jumpstart Our Business Startups) Act of 2012 legalized a new form of equity crowdfunding for all investors regardless of income or net worth. This chapter clarifies the differences between the various kinds of crowdfunding and provides lessons for investors about risk, reward, fraud prevention, and the wisdom of the crowd.

Chapter 2: Equity Offerings under Reg. D

Starting in 2011 in the United States, startups and early-stage companies began offering securities to accredited investors through Web-based offering platforms, under Rule 506 of Regulation D. Issuers could raise an unlimited amount of equity capital via Reg D platforms. Title II of the JOBS Act of 2012 lifted the ban on general solicitation for offerings made under new Rule 506(c). We profile two pioneers in Reg D offering platforms: MicroVentures (focusing on tech startups) and CircleUp (focusing on earlystage consumer products and retail companies).

Chapter 3: Equity Crowdfunding for All Investors

Title III of the JOBS Act of 2012 created a legal framework for equity crowdfunding, whereby all investors (not just wealthy “accredited” investors) can buy securities issued by startups and early-stage companies. The regulations limit the amount of money investors can invest in equity crowdfunding offerings each year, based on their income and/or net worth.

Chapter 4: Intrastate Crowdfunding, Non-accredited Investors

At least a dozen states got a jumpstart on equity crowdfunding, using the “intrastate exemption” to initiate regulatory frameworks for in-state equity crowdfunding. Georgia was the first U.S. state in which an equity crowdfunding portal successfully funded a startup with participation of non-accredited investors.

Chapter 5: Deal Flow

What kinds of companies will offer equity shares on Title III crowdfunding portals? Will they really have high growth potential and be worth investing in? Will there be a big enough supply of offerings to meet the demand of tens of millions of new angel investors? In this chapter we forecast what kinds of companies— in terms of industry, development stage, growth potential, and other characteristics—will represent the most attractive Title III deals for all (including non-accredited) investors.

Chapter 6: Angel Investors

In depth, we discuss the benefits, returns, costs, and risks of investing in startups and early-stage companies via equity crowdfunding. The possibility of earning spectacular return on investment (even if not very likely) is one attraction of angel investing. We discuss how the emergence of equity crowdfunding creates a new class of angel investors, with some of the same motives and benefits as traditional angels but some new ones, too—especially social benefits.

Chapter 7:  How to Navigate through Title III Offerings

This chapter offers a glimpse behind the scenes of equity crowdfunding portals—how they are regulated, the difference between “funding portals” and broker-dealer platforms, how they decide whether to approve or reject issuers’ applications, how investors communicate with each other, and using an investor dashboard.

Chapter 8: How to Invest, Part 1: Portfolio Strategy

A three- to five-year plan for building an equity crowdfunding portfolio Investing in private securities, including Title III offerings, is one way to diversify your investment portfolio. This chapter helps you decide what percentage of your portfolio assets should be devoted to “non-correlated” alternative assets like Title III offerings; identify your primary motives for investing in startups and early-stage companies so you can narrow down the kinds of offerings that you consider; create an equity crowdfunding budget, pinpointing the amount of money that you can invest each year over three to five years; and build a diversified equity crowdfunding portfolio.

Chapter 9: How to Invest, Part 2: Identify Suitable Offerings

How narrow down your choice of Title III offerings, based on your selection criteria—the first of which is identifying your social, personal, and/or financial motivation for investing in startups and early-stage companies.

Chapter 10: Equity Crowdfunding Securities

Title III equity offerings are predominantly C corporation stock, limited liability company membership units, and convertible debt. This chapter covers the fundamentals of each of those securities (including both common and preferred stock), and their advantages and drawbacks for both issuers and investors.

Chapter 11: Deal Terms

We provide concise explanations of the terms of private securities deals, in four categories: economic terms (like price per share, minimum investment, fully diluted valuation, etc.); control terms (protective provisions, veto power, etc.); terms relating to liquidity events and future financing (liquidation preferences, anti-dilution provisions); and other terms (conversion rights, dividends, redemption rights, right of first refusal, etc.).

Chapter 12: How to Invest, Part 3: Due Diligence

How to research an issuer’s management team, financial reports, revenue projections, business strategy, regulatory compliance, and other key indicators. You have the option of conducting due diligence independently, relying on a sophisticated “lead investor,” hiring a professional adviser, and/or collaborating with members of the crowd through on-platform discussions and Q&A forums.

Chapter 13: How to Invest, Part 4: Funding and Post-funding

We talk about the on-platform investment transaction, your rights and obligations as a shareholder, and how to monitor and manage your equity crowdfunding portfolio.

Chapter 14: Liquidity and Secondary Markets

Equity crowdfunding securities are relatively illiquid, especially in the first 12 months that you hold the investment. Secondary markets will probably develop over the next few years to provide liquidity to Title III securities. We look back at how secondary markets developed for accredited investors in the past 10 years, and project how they might develop for all investors in the near future.


5. Charting a New Revolution in Equity Crowdfunding: The Rise of State Crowdfunding Regimes in the Response to the Inadequacy of the Title III JOBS Act – Good analysis of intrastate crowdfunding exemptions.

6. The Next British Invasion is Securities Crowdfunding: How Issuing Non-Registered Securities through the Crowd Can Succeed in the United States – Good analysis of equity crowdfunding in the U.K.

7. Breaking New Ground: The Americas Alternative Finance Benchmarking Report – Research report on peer to peer lending, another form of alternative finance.

# # #

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. 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.
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.
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.

Top 100 Crowdfunding Sites in the United States, Europe, Asia, South America, Africa and other Global Markets in 2016

1 May

Seeking the Top 100 Crowdfunding Sites
in the United States or the Rest of the World? See Our Updated 2016 Rankings!

Crowdfunding PR’s 2016 Top 100 Global Crowdfunding Sites

Crowdfunding PR’s 2016 Top 100 Global Crowdfunding Sites

 By Robert Hoskins

[Click Here to Tweet this Top 100 List to Your Business Colleagues]

United States – We have updated our List of the Top 100 Global Crowdfunding Sites for 2016 in the United States, Europe, Asia, South America, Africa and other global markets.  

Clicking on the website traffic ranking links below will take readers to one of the most insightful resources of information that details each website’s traffic ranking; the number of unique visitors per month; the average time spent on each site per visit; and the number of pages viewed per each visit.

Of more interest to crowdfunding campaign managers will be the precise ratio of social media, content marketing, search engine marketing, email marketing and display advertising that is being utilized by each crowdfunding site’s marketing campaigns to drive readers and investors to their crowdfunding profiles.

GoFundMe vs Kickstarter SimilarWeb Stats

GoFundMe vs Kickstarter SimilarWeb Stats

Even though these numbers reflect the aggregation of all of a given portal’s crowdfunding campaigns marketing efforts, they offer direct evidence of what is working and what is not.  Note the difference on how much social media and display advertising is being used by the Top 10 Crowdfunding Sites compared the lower 90 crowdfunding sites. 

This information can be used by crowdfunding sites as well as their crowdfunders to get a thorough understanding on how to plan future marketing campaigns that will have a higher than average success rate.

Want to know how Kickstarter has just retaken GoFundMe as the world’s #1 crowdfunding platform? Click on the Global Rank number links below and then use the comparison tool to show side-by-side comparisons of SEO keywords, link referrals, and social media usage. See the bottom of the page for more crowdfunding marketing tips.

[Click Here to Tweet this Top 100 List of Crowdfunding Sites]

  2016 Rank © Front Page PR   Global Rank
#1 (2015: #2) www.kickstarter.com        692
#2 (2015: #1) www.gofundme.com      1,805
#3 (2015: #4) www.indiegogo.com      2,126
#4 (2015: #3) www.angel.co      4,550
#5 (2015: #5) www.lendingclub.com      9,781
#6 (2015: #6) www.justgiving.com    10,950
#7 (2015: #9) www.ulule.com     15,943
#8 (2015: #7) www.youcaring.com     22,315
#9 (2015: #8) www.kiva.org     24,366
#10 (2015: #12) www.crowdrise.com      24,617
#11 (2015: #10) www.donorschoose.org      33,737
#12 (2015: #16) www.fundingcircle.com      37,717
#13 (2015: #11) www.pledgemusic.com     42,380
#14 (2015: #13) www.tilt.com      51,509
#15 (2015: #50) www.seedandspark.com     64,606
#16 (2015: #22) www.circleup.com     68,095
#17 (2015: #24) www.kickante.com.br     69,483
#18 (2015: #15) www.crowdcube.com     73,968
#19 (2015: new) www.seedrs.com     90,162
#20 (2015: #28) www.gogetfunding.com     97,023
#21 (2015: #29) www.fundrise.com    117,386
#22 (2015: #20) www.firstgiving.com     117,598
#23 (2015: #17) www.razoo.com    126,920
#24 (2015: #14) www.giveforward.com     126,939
#25 (2015: #38) www.seedinvest.com     135,275
#26 (2015: #18) www.fundly.com    140,609
#27 (2015: #27) www.zeczec.com     151,454
#28 (2015: #25) www.crowdfunder.com    158,984
#29 (2015: #23) www.fundable.com    185,100
#30 (2015: #19) www.pozible.com    189,422
#31 (2015: new) www.companisto.com    201,708
#32 (2015: new) www.wiseed.com    211,628
#33 (2015: #21) www.fundrazr.com    214,382
#34 (2015: #31) www.experiment.com    217,304
#35 (2015: #53) www.peerform.com    222,324
#36 (2015: #53) www.startengine.com    227,165
#37 (2015: new) www.seedmatch.de    227,277
#38 (2015: #86) www.bnktothefuture.com    279,553
#39 (2015: new) www.fundersclub.com    284,743
#40 (2015: #45) www.ourcrowd.com   286,808
#41 (2015: #26) www.equitynet.com   293,867
#42 (2015: new) www.syndicateroom.com   293,940
#43 (2015: #32) www.realtymogul.com   332,585
#44 (2015: #42) www.pledgie.com   351,524
#45 (2015: #39) www.slated.com   354,964
#46 (2015: #44) www.fundanything.com   361,785
#47 (2015: #40) www.patchofland.com   364,803
#48 (2015: #33) www.geldvoorelkaar.nl   367,546
#48 (2015: new) www.anaxago.com   392,914
#49 (2015: #48) www.ppl.com.pt   407,009
#50 (2015: #30) www.fundedbyme.com   410,994
#51 (2015: #41) www.givezooks.com   443,766
#52 (2015: #76) www.joinmosaic.com   472,517
#53 (2015: #43) www.microventures.com  504,408
#54 (2015: #new) www.invesdor.com  520,978
#55 (2015: #37) www.offbeatr.com   526,705
#56 (2015: #36) www.wefunder.com   586,450
#57 (2015: #57) www.plumfund.com   603,093
#58 (2015: #65) www.crowdstreet.com   616,566
#59 (2015: #49) www.dragoninnovation.com   635,079
#60 (2015: #52) www.opportunity.org   669,915
#61 (2015: #61) www.flashfunders.com   693,854
#62 (2015: #58) www.fundraise.com   744,583
#63 (2015: #46) www.pave.com    748,172
#64 (2015: #64) www.symbid.com   884,303
#65 (2015: #68) pitchfunder.asufoundation.org 1,072,918
#66 (2015: #34) www.onevest.com 1,098,541
#67 (2015: #66) www.assetavenue.com 1,124,447
#68 (2015: #69) www.artistshare.com 1,135,924
#69 (2015: #70) www.nextseed.com 1,138,179
#70 (2015: #63) www.piggybackr.com 1,162,479
#71 (2015: #62) www.trucrowd.com 1,246,018
#72 (2015: #60) www.barnraiser.us 1,288,466
#73 (2015: #54) www.bolstr.com 1,477,216
#74 (2015: #59) www.earlyshares.com 1,585,544
#75 (2015: #80) www.pledgecents.com 1,597,425
#76 (2015: #82) www.crowd2fund.com 1,776,210
#77 (2015: #47) www.growvc.com 1,791,220
#78 (2015: #87) www.acquirerealestate.com 1,989,566
#79 (2015: #71) www.appsfunder.com 2,649,175
#80 (2015: #78) www.dreamfunded.com 2,760,699
#81 (2015: #72) www.assob.com.au 2,767,540
#82 (2015: #90) www.massivemov.com 3,234,838
#83 (2015: #55) www.investx.com 3,486,195
#84 (2015: #75) www.faithlauncher.com 3,605,295
#85 (2015: #75) www.crudefunders.com 3,792,211
#86 (2015: #84) www.texasenetworks.com 3,923,796
#87 (2015: #51) www.pubslush.com 4,078,981
#88 (2015: #73) www.foodstart.com 4,358,969
#89 (2015: #56) www.uinvest.com.ua 4,483,866
#90 (2015: #79) www.propellr.com 4,516,046
#91 (2015: #85) www.icrowd.com 4,629,191
#92 (2015: #67) www.microgiving.com 4,757,890
#93 (2015: #81) www.massventure.com 5,544,974
#94 (2015: New) www.offerboard.com 5,968,517
#95 (2015: #99) www.cMEcompete.com 6,363,051
#96 (2015: #83) www.ipledg.com 6,460,243
#97 (2015: #93) www.funderhut.com 6,764,561
#98 (2015: #97) www.crowdfundingbank.com 7,068,480
#99 (2015: #77) www.crowdfundingpays.com 7,667,040
#100 (2015: #88) www.sterlingfunder.com 7,951,827

Source: Feb 2016 SimilarWeb Website Statistics

Crowdfunding PR’s goal is simple. We want to make it possible for crowdfunders to shop for  crowdfunding platforms in a similar manner to the way media planners/buyers used to analyze ABC and BPA audit statements to buy advertisements in the business-to-business trade publication industry, where important media buying decisions were based on straight mathematics, not popularity or random guessing.

For example, would you rather run a crowdfunding campaign on a site where visitors are looking at 2-3 pages in around 3 minute’s time or a site where buyers are spending 6 to 11 minutes reviewing 6 to 10 pages?

This is the difference between shoppers who are visiting a site to see a particular crowdfunding campaign based on a marketing campaign versus people who are visiting a site to explore and actually shop around to find good deals to buy or invest their money.

This is why launching a campaign on Kickstarter or GoFundMe does not guarantee success. While Kickstarter, GoFundMe or Indiegogo may be the largest sites in the world, people are only spending enough time to shop through more than 2 to 3 crowdfunding profiles before they exit. While other sites like Razoo.com, DonorsChoose.org, and FundingCircle.com have visitors that stay more than 6 to 11 minutes and view 6 to 10 pages.

When researching, planning and executing successful marketing programs for both crowdfunding platforms as well as their individual crowdfunding customer profiles, it is extremely important to see what is driving the most traffic to any given crowdfunding site.  Success is usually determined not only by what site the crowdfunding campaign is being hosted on, but also the marketing programs being harnessed to drive potential donors/investors to a specific crowdfunding profile.

Clicking on each link above will allow media planners/buyers to understand what role direct traffic (content marketing), search engines (SEO, PPC Advertising), social media (Facebook, LinkedIn, Twitter, Reddit, Quora), email marketing and display advertising (Google Display, Outbrain, AppNexus) are having on the success of crowdfunding campaigns.

For example, when planning a social media strategy, one of the most popular questions we get asked is – what social media networks are driving the most visitor traffic? Facebook, LinkedIn, Twitter, Quora, Reddit, YouTube, Pinterest, Instagram? The links above will make this answer crystal clear.

Not satisfied with your position on the list? Front Page PR’s team of crowdfunding PR, social media and marketing experts can help crowdfunding sites and crowdfunding campaigns plan the perfect mix of integrated marketing programs to significantly improve the amount of website traffic being driven to any given fundraising campaign or crowdfunding platform.

Feel free to call (512) 627-6622 with questions or request help to improve your website statistics before June.

More Top 100 Crowdfunding Site Lists:

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If you’d like to add your site to the Top 100 list, please fill out the form below.

Crowdfunding PR Seeks Equity-based and Rewards-based Crowdfunding Sites to Add to Its Top 100 Crowdfunding List

29 Apr

Add Your Site to Our 2016 Top 100 List

Do you know of a new crowdfunding site that has been launched in the last 12 to 24 months? If so, we want to know the company name and what URL we should review for our Top 100 Crowdfunding Sites list.

Either follow us on Twitter @Crowdfunding_PR or connect with us on Linkedin at https://www.linkedin.com/in/roberthoskins and then share the information you’d like to add to any of our lists.

Is your crowdfunding site listed?

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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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Crowdfundraiser Rolls Out New Regulation A+ Crowdfunding Sites to Support Equity Crowdfunding for Accredited and Non-Accredited Investors

24 Jun

The new rules for Regulation A+ of the JOBS Act allow for capital raising, with some stipulation, of up to $50,000,000 from both accredited and non-accredited investors for private companies

By Robert Hoskins

Seattle, Washington – Crowdfundraiser.com announced the official release of Regulation A+ crowdfunding kickoff pricing for new companies seeking capital. As of June 19, 2015, equity crowdfunding for both accredited and non-accredited investors is now legal.

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

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

The deals that will begin registration with the SEC in June and will take a few months to completely cycle through, but the law is now fully in place. The new rules for Regulation A+ of the JOBS Act allow for capital raising, with some stipulation, of up to $50,000,000 from both accredited and non-accredited investors for private companies.

“We are already seeing a great deal of interest from both investors looking to invest and companies seeking capital through the Reg A+ rules,” stated Jake Durrant, Crowdfundraiser’s Managing Director. “We are not expecting this interest to abate as the new tools at the disposal of small business represent one of the greatest opportunities for small business capital formation in a generation.”

Founded in 2014, Crowdfundraiser provides expert guidance for companies seeking to navigate the waters of equity crowdfunding. With a handful of in-house and experienced securities and transactional attorneys, the company has the resources to assist any company seeking access to capital through equity crowdfunding and Regulation A+.

The company includes experienced investment bankers as well as those familiar with microcap stocks, which should provide timely assistance for crowdfunded companies that need future liquidity for investors through the public markets.

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

4 May

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

 By Robert Hoskins

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

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

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

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

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

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

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