News & Events - Crowdfunding

  • July 31, 2012

    The Soho Loft Capital Creation Events and FundingPost will host a special educational session in New York City for Angel Investors and Venture Capitalists on August 9, 2012, at the "DC VC and Angel Event”. Mr. Douglas S. Ellenoff of Ellenoff Grossman & Schole is moderating the panel on crowd funding which will teach 100+ leading entrepreneurs how crowd funding may apply to financing their startups.

  • July 18, 2012

    On Wednesday, July 18, hosted a webinar with leaders of the emerging crowdfunding industry on how the new framework and regulations are taking shape under the JOBS Act.

  • July 09, 2012

    The Jumpstart Our Business Startups Act (JOBS Act)—a new law aimed at increasing American job creation and economic growth—contains key provisions relating to securities offered or sold through “crowdfunding.” Under the new law, intermediaries performing crowdfunding on behalf of issuers must register with the Securities and Exchange Commission (SEC) as a “funding portal” or broker and must register with an applicable...

  • July 03, 2012

    The North American Securities Administrators Association, Inc. (NASAA) published their comment letter on the JOBS Act.

  • June 29, 2012

    Crowdfunding has become a big industry, as people are increasingly seeking ways to finance new creative projects and technology ideas. But one crowdfunding startup is focusing more on helping people raise money for personal needs, and is starting to process some serious funding in the meantime.
    That startup, called GoFundMe, was actually founded in 2008, long before Kickstarter made it big and around the same time that IndieGoGo first hit the scene.

  • June 29, 2012

    For those of you eager investors, entrepreneurs and brokers out there who want to do crowdfunding tomorrow, you’ll just have to be patient.

    Until the US Securities and Exchange Commission (SEC) writes and publishes rules for this online route to equity fundraising, any solicitation you get to do it now is a scam.

  • June 29, 2012

    On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, a series of legislative provisions intended to facilitate capital formation in the United States. Part of this legislation included the CROWDFUND Act, which makes significant changes in current federal and state securities laws.

  • June 28, 2012

    When it comes to crowdfunding platforms, the biggest (or at least most well known) kid on the block is Kickstarter. So when the company announced last week it would release stats on the projects within its platform, the analyst in me got all excited. Like many, I’ve wanted more granular data on the breakdown of projects as well as which ones do better than others.

  • June 27, 2012

    Crowdfunding won’t work for small businesses unless the Securities and Exchange Commission limits the burdens imposed on companies that use this new method of raising capital.  That’s what crowdfunding experts told members of the House Oversight and Government Reform Committee today during a hearing on the JOBS Act, the new law that aims to make it easier for small businesses to raise capital.

  • June 27, 2012

    The Congressional Committee on Oversight and Government Reform held a hearing on job creation and the Securities and Exchange Commission's efforts to implement the JOBS Act. Rep. Patrick McHenry (R-NC) chaired the hearing. RocketHub's CFO, Alon Hillel-Tuch, was invited to testify on the potential the "crowdfunding for equity" model holds for start-ups, job growth, and the US economy.

  • June 25, 2012

    A little extreme? Maybe. And sorry for offending any VCs out there. But have you heard the news from across the pond?  Two entrepreneurs + one startup + 70k followers + 14 days = $933,342.00 in funding (600,000 British Pounds).  And not a venture capitalist in sight.

    Call it “crowdfunding”.

    Now please understand I am not knocking the VC racket. (Oops, did I just call it a racket?)

  • June 22, 2012

    How well does crowdfunding actually work? Fundraising website Kickstarter is giving a picture of some of its own numbers, including statistics on success rates and dollars pledged.  The New York company, through which customers raise money to fund creative projects, has received pledges of $261 million so far, according to data published on the company’s site. Only successfully funded projects -- those that reach their pledge goals by their deadlines -- collect money; for those that fall short, the pledges are canceled.

  • June 16, 2012

    PEBBLE, a watch that displays messages from the wearer’s iPhone, may not be a record-holder for long. The $10.3m raised last month from 68,929 people after Pebble’s inventors posted a pitch on Kickstarter, a “crowdfunding” website, dwarfed the previous high of $3.3m set in March by Double Fine Adventure, a video game (see chart 1). Until February, no project had raised $1m. Now seven have.

  • June 06, 2012

    Indiegogo Inc. is going strong. The crowdfunding platform has closed a $15 million Series A round to scale operations and vanquish its large and growing list of competitors.  Insight Venture Partners led the Series A round with participation from new investor Khosla Ventures and existing investors Metamorphic Ventures, MHS Capital, ffVenture Capital, and Zynga Inc. co-founder Steve Schoettler. 

  • June 04, 2012

    The JOBS Act was supposed to be about clearing away regulation to help young companies create jobs.  Just eight weeks after its passage, however, more than a dozen of the companies seeking to use its looser rules for going public aren't the type of high-tech growth companies lawmakers had in mind.

  • May 29, 2012

    A few weeks ago, President Obama signed the JOBS Act into law, making equity-based crowdfunding legal for businesses that want to raise capital in smaller amounts than traditional venture capitalists or accredited investors supply. Depending on who you ask, crowdfunding is either going to democratize access to capital and serve as a boon to small businesses across America, or it will be rife with con artists intent on bilking seniors out of their hard-earned savings.

  • May 23, 2012

    Artists are not renowned for financial savvy, but their success in raising money on the Internet through donations to crowdfunding websites like Kickstarter and Indiegogo could lead the way for a new class of investing. Soon investors will be able to pile money into startups through such sites with the hope of getting more than a lousy t-shirt in return.

  • May 23, 2012

    It’s official: the money people are rallying to the crowd-funding cause.  President Obama signed the American JOBS Act of 2012 into law on April 5, and broker-dealers are already looking for opportunities to fund entrepreneurial startups.

  • May 08, 2012

    Massolution™, a research firm specializing in crowdsourcing and crowdfunding solutions, released its first comprehensive Crowdfunding Industry Report. After collecting data from more than 170 crowdfunding platforms (CFPs) and other sources, the results revealed that CFPs raised almost $1.5 billion and successfully funded more than one million campaigns in 2011.

  • April 30, 2012

    Ellenoff Grossman & Schole LLP has been closely following the legal developments since the program’s inception. George Georgiades, an Associate of the Firm, has written a CrowdFunding alert that summarizes the key provisions and current status of the new reforms.

  • April 23, 2012

    The future of crowdfunding is now in the hands of the Securities and Exchange Commission. When Congress passed the law making it legal to sell small stakes in private companies to the general public online, lawmakers left it up to regulators to determine the mechanics of how such transactions will actually work.

  • April 05, 2012

    Today, President Obama signs the Jumpstart Our Business Startups (JOBS) Act into law. For those of you who haven’t been following the JOBS Act, it is a bill that will make it easier for startups and small businesses to raise funds, especially through online crowdfunding.

  • April 03, 2012

    As I am writing this, a new law called the "Jumpstart Our Business Startups Act" (J.O.B.S. for short) has passed both houses of Congress and is sitting on the president's desk awaiting signature.

    Among other things, the law will change the federal securities laws to make it easier for small companies to raise capital from total strangers by "crowdfunding" -- soliciting small investments from hundreds (sometimes thousands) of individual...

  • March 27, 2012

    The JOBS Act is headed to President Barack Obama’s desk.

    The House on Tuesday signed off on the final version of the package, aimed at helping small businesses and startups more easily raise capital by loosening various Securities and Exchange Commission regulations.

  • March 22, 2012

    The US Senate has just passed a bill that would legalize "crowdfunding" for small businesses. The CROWDFUND Act, an amendment to the JOBS Act bundle that was approved 73 to 26, lowers barriers for investment in companies that haven't yet gone public. That means that new companies — ideally, the next Google or Facebook — could be funded by small donations from the general public, either through a licensed broker or an accredited portal. In response to concerns that this would make it easier to defraud investors, the Act was amended to include stronger protections and oversight.