Ice cream magnates, Ben Cohen and Jerry Greenfield, remained true to their adopted state's roots in 1984 when they raised more than $750,000 in a direct public offering ("DPO") entirely from residents of the state of Vermont. DPO's allow small or local companies to raise investment capital apart from the strict registration requirements of federal and state securities laws. Crowdfunding seems like a new thing, but as Amy Cortese pointed out in an article entitled “Old-School Crowdfunding: Meet the Direct Public Offering”, crowdfunding has been around in the form of direct public offerings for a quite a while.
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SAFE stands for Simple Agreement for Future Equity, and they are simple. They’re fantastic, actually, but do crowdfunding investors understand what they are receiving when they "invest" in a young company and get SAFEs in return?
Properly used, SAFEs serve a great niche in the investment world. But without proper disclosure and education, sadly, in time, SAFEs may discourage and disillusion investors who hoped to participate in the success of small start-up companies.
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US companies have enjoyed foreign direct investments from immigrants all over the world through the popular EB-5 program in which investors invest a certain amount of money to create jobs in the US economy in exchange for a green card. Proposed changes to the definition of "accredited investor" may have a profound impact in the EB-5 industry.
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VerifyInvestor.com will be attending the Government-Business Forum on Small Business Capital Formation this year in Washington D.C. on November 17th, 2015 at the SEC Headquarters.
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The Securities and Exchange Commission will host a public forum to discuss financial technology (Fintech) innovation in the financial services industry. The forum is designed to foster greater collaboration and understanding among regulators, entrepreneurs and industry experts into Fintech innovation and evaluate how the current regulatory environment can most effectively address these new technologies.
The proliferation of Fintech innovation has the potential to transform virtually every aspect of our nation’s financial markets. The panels will discuss issues such as blockchain technology, automated investment advice or robo-advisors, online marketplace lending and crowdfunding, and how they may impact investors.
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This year's 2016 Global Alternative Funding Forum will be held on November 11th at The Skirball Center in Los Angeles.
THE FUTURE IS NOW – ACCESS TO CAPITAL, REDEFINED
Exclusive thought-leadership annual gathering with a think-tank theme: made by entrepreneurs for entrepreneurs. ONE DAY ONLY EVENT.
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General solicitation in the realm of offering securities under Reg A+ Tier II and Rule 506(c) is a growing trend in the United States. Title III of the JOBS Act also provides a more limited form of general solicitation. An array of different marketing channels may be used to attract investors, including various types of social media, including postings and videos either on corporate websites or funding platforms.
There are anti-fraud regulations in place (both federal and state) that have been in place prior to the birth ofgeneral solicitation. Both the funding platforms and the issuers of securities must comply with these rules. Failure to do so can get both entities into regulatory trouble.
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Crowdfunding often brings to mind Kickstarter-like projects where participants only get the satisfaction of seeing a creative project come to fruition without any financial return. However, the landscape has changed so that crowd investors may now buy a real stakes in companies that provide return on investment. This is due to the rising market of investment crowdfunding.
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Recently the Advisory Committee on Smaller and Emerging Companies to the Securities and Exchange Commission (SEC) voted to recommend that the SEC extend its definition of an accredited investor.
The committee voted to expand the pool of investors eligible to invest in private placement investments, those not registered with the SEC. The main change was to include everybody who held the Series 7, 65 or 82 securities license exams or who had a chartered financial analyst or similar credential. A Law is Pending to Change the Definition...
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