Tag Archives: Unaccredited Investors

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on the number of initiated offerings and then by the target amounts of the initiated offerings, excluding offerings withdrawn as of December 31, 2016.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.

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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.

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.

420FundMe.com Launches Equity Crowdfunding Site to Tap $100 Billion Marijuana, Weed & Cannabis Industry

25 Aug

Aimed at cannabis related ancillary companies, which are not directly involved in the actual growing or selling of cannabis, 420fundme focuses on individuals that are bringing unique new products to the industry

By Robert Hoskins

San Francisco, California – The IPAmediagroup announced the official launch date of www.420fundme.com, a highly anticipated crowdfunding platform to crowdfunding for cannabis, marijuana and weed related projects. The site launch is set for September 15th and will enable individuals, groups and businesses to fund a project or venture by raising monetary contributions from individuals online.

420FundMe.com Launched a highly anticipated platform for crowdfunding cannabis, marijuana, and weed-related projects, startups and business expansion

420FundMe.com Launched a highly anticipated platform for crowdfunding cannabis, marijuana, and weed-related projects, startups and business expansion

Aimed at cannabis related ancillary companies, which are not directly involved in the actual growing or selling of cannabis, 420fundme focuses on individuals that are bringing unique new products to the industry. Working within a potential $100 billion industry, according to Economist.com, since August 1st the site prelaunch has allowed registration for new projects to be listed on launch day.

“We have beat all expectations and are already seeing a large influx of highly exceptional new products that are simply going to change the industry,” Jon Greene, 420FundMe’s Chief Operating Officer confirms.  “From lighting, security, paraphernalia, and grow products to research, genetics, publications and even real estate services as well as a number of artists, websites, glassblowers, and even filmmakers we can already see we created a necessary platform that is going to be well used.”

Centered on making certain each and every campaign is a success, 420fundme has implemented a number of unique solutions that are not only new to the cannabis industry but also new to crowdfunding and alternative financing. This includes facilitating inline promotional abilities and applying third-party partnerships directly through the platform.

With uninterrupted connections from the project page any campaign has direct access to high quality third-party marketing, publicity, advertising, and media services as well as packaging and branding services and solutions.

“It is a seamless partnership that will enable every campaign to create success at the same time providing our partners and advertisers a huge new market,” Greene added.

Visit 420FundMe.com to pre-register your project and to find out more about how to utilize crowdfunding to raise money to launch your cannabis, marijuana or weed related business or how to sponsor a campaign, become a partner, and explore advertising opportunities.

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iFunding Raises $1,950,000 for Preferred Equity Investment for University of Florida

25 Aug

iFunding, a leading commercial real estate crowdfunding platform, raises $1,950,000 for a student housing apartment community in Gainesville, Florida

By Robert Hoskins

New York, New York – iFunding has raised $1,950,000 of preferred equity for a best-in-class student housing community in Gainesville, FL. The Sponsor is an innovative developer with a diverse US property portfolio. For this development, they secured a prime location proximate to both the University of Florida and the region’s leading retail center. 

iFunding has raised $1,950,000 of preferred equity for a best-in-class student housing community in Gainesville FL

iFunding has raised $1,950,000 of preferred equity for a best-in-class student housing community

The preferred equity investment is being made simultaneous with the property’s transition from construction to occupancy. This 600+ bed community outperformed lease-up expectations and was 99.2% pre-leased.

iFunding’s preferred equity is a participation with an institutional investor that has completed over $1 billion of transactions since 2010.

William Skelley, Founder & CEO of iFunding, observed, “As the iFunding community continues to expand its investor universe, we are thrilled to provide offerings that meet our investors preferences: multifamily assets with attractive yield and short-term duration. This capital raise not only meets those preferences, it’s a participation with an established commercial real estate family office.”

Innovational Funding LLC (“iFunding”) is one of the leading commercial real estate crowdfunding platform aggregating investor capital to provide equity and debt financing to owners, developers, and fund managers by leveraging relationships, technology and a full-service online platform. Accredited investors and institutions can register on our website to review our curated online investment marketplace, which includes investment positions in all asset classes and throughout the capital stack.

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WaterField Design’s Intrepid iPhone Travel Wallet Shatters Kickstarter Goal by Reaching 600% on First Full Day

24 Aug

New backers may pledge for the one-of-a-kind Intrepid iPhone Travel Wallet — an RFID-blocking wallet, play-through iPhone case and travel attaché — through Kickstarter until September 25

By Robert Hoskins

San Francisco, California –  The WaterField Designs new Intrepid Travel Wallet shattered its crowdfunding goal by reaching 600% within its first full day after launch. The Intrepid is a leather, all-in-one travel case with iPhone play-through capability for scanning QR codes and downloaded tickets, or for checking texts, emails, and apps. The interior includes Intuitive organization compartments for passport, tickets, foreign exchange and coins. Having now reached nearly 750% of its initial funding goal, WaterField continues to add pledge options to meet growing demand. The Intrepid Kickstarter campaign runs through September 25, 2016.

Intrepide iPhone Travel Wallet from WaterField Designs

Intrepid iPhone Travel Wallet from WaterField Designs

“We’re floored and gratified to have achieved such success with our first Kickstarter campaign in such a short amount of time,” explained Gary Waterfield, company owner. “The Intrepid iPhone Travel Wallet is more than just a wallet or a phone case; it’s really an amazing travel companion. Its play-through feature is incredibly useful and becomes quickly addictive as you begin to see how efficient you can be with it.”

The Intrepid Travel Wallet is at once a wallet, iPhone case and a travel attaché. As a wallet, two interior side pockets hold credit cards, hotel keys and metro tickets; its main compartment is large enough for domestic or foreign bills and a pen. Built-in RFID-blocking capability offers extra security while traveling about. An included zippered pouch, the Micro Wallet, fits inside the main compartment to secure coins or keys. As an iPhone case, the Intrepid’s revolutionary play-through, scannable screen allows users to access the phone for texts, emails and apps, and to scan a boarding passes without removing the phone.

The Travel Wallet holds all this plus a passport in a custom-sized pocket in one organized place, as any good travel attaché should. The Travel Wallet saves time at TSA checkpoints and fits neatly in an airline seat-back pocket for easy access to in-flight necessities.

The Intrepid Travel Wallet is available in two sizes, one designed for the imminent iPhone 7 or similarly-sized phones and one for phones the size of the iPhone 7 Plus. An Ultrasuede ® liner keeps phones and other contents scratch-free and a handsome and heavy-duty G2 metal zipper keeps contents secure. A designated iPhone enclosure with transparent play-through screen, a special passport pocket and dual card pockets keep travel-related needs neatly organized.

Supporters may choose a black or brown premium full-grain leather exterior. Through this — its first Kickstarter campaign — WaterField builds on a seminal aspect of its business by allowing pledged supporters the opportunity to help determine final design details: an additional color and other features may be added based on backer’s feedback.

The WaterField Designs Intrepid Travel Wallet is available as a reward via the WaterField Designs Kickstarter page. Supporters may pledge until September 25, 11:59 PST and the first production run ships October 2016.

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Legion M Closes Over-Subscribed, Record-Setting $1 Million Equity Crowdfunding Campaign on Wefunder Portal

16 Aug

World’s first fan-owned entertainment studio leads the JOBS Act field with 3,000+ investors and significant demand above and beyond the $1 million cap allowed by the SEC’s JOBS Act Regulation CF

 By Robert Hoskins

Silicon Valley, CA – Legion M, the world’s first crowdfunded and now fan-owned entertainment company, announced they have raised one million dollars via their Title III crowdfunding offering on Wefunder. The Company raised the funds in less than three months from a record breaking 3,000+ investors, making it the most popular Reg CF company in the short history of Title III of the JOBS Act. At the time of closing, Legion M was also the number one company in terms of total investment interest and demand, with significantly more demand above and beyond the $1 million dollar funding cap allowed by the SEC, which leaves outstanding appetite for Legion M stock even after the round is closed.

Legion M Closes Oversubscribed, Record-Setting $1 Million Equity Crowdfunding Round on Wefunder

Legion M Closes Oversubscribed, Record-Setting $1 Million Equity Crowdfunding Round on Wefunder

“Legion M shareholders worldwide are celebrating this significant milestone we achieved together. We are truly inspired by their energy, passion and unbridled support. This Legion of dedicated fans have rallied behind us and our movement to make our mark entertainment industry,” said Paul Scanlan, CEO and co-founder of Legion M. “We are grateful to the JOBS Act for the innovative reforms that make this possible. Today we made history, and this is only the beginning.”

 Legion M’s creative partners currently include Stoopid Buddy Stoodios, the team behind Robot Chicken, 42 Entertainment, Meltdown Comics and Alamo Drafthouse.

 “I was impressed with how Legion M’s fans rallied to help them hit the one million dollar milestone eight days early,” said Nick Tommarello, CEO and co-founder of Wefunder. “We designed Wefunder for companies looking to build a stronger relationship with their most passionate customers, who are eager to help their favorite companies succeed. It was great to see how well it worked with Legion M’s well over three thousand investors.”

 “With more than three times the number of investors as any other Reg CF offering, Legion M has set the bar for Title III,” says Sara Hanks, a definitive authority on the JOBS Act and CEO of equity crowdfunding specialists CrowdCheck. “The real power of equity crowdfunding is having an investor base that can increase the value of your company, and Legion M is one of the best illustrations of that so far.”

“Having raised in excess of $100 million from VCs and angel investors for previous companies, we can attest that equity crowdfunding is a game changer,” said Jeff Annison, Legion M president and co-founder. “It’s not just a way to raise money–it’s a whole new paradigm for building a company.”

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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

 

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


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
Mr. Hoskins 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.

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 

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


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

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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