News & Events - Crowdfunding

  • March 22, 2012

    Non-accredited investors interested in investing in young companies and entrepreneurs hoping to use the internet to raise money for their startups are one step closer to their dreams today after the United States Senate passed the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act, also known as the CROWDFUND Act.

  • March 15, 2012

    To start or expand a business, you need to raise money—and it can be harder to raise the money than to actually build a business. Banks now balk at lending to small businesses; their balance sheets remain in tatters from the mortgage meltdown. Entrepreneurs, unable to borrow what they need from banks, tap their credit cards, and then they must search elsewhere for the capital they need.

  • March 15, 2012

    It's no secret that the economy isn't what it used to be, but a bill introduced in the US House of Representatives last fall by Rep. Patrick McHenry (NC-10), which was passed overwhelmingly, might hold the key to a major jump start for budding entrepreneurs who are currently hampered by SEC rules and other regulatory burdens.

  • March 12, 2012

    It has been a whirlwind last few days in the crowd-funding world. For those of you who have not yet tuned in to this, there is legislation afoot, backed by the President and (so far) the House, that would enable, in effect, mini- IPOs as a way to fund startups. Forget everything you know about the rules of equity financing for seed-stage startups.

  • March 01, 2012

    Is crowdfunding legislation dead or alive? It depends on your perspective. Yesterday we both repeated the news reported by Reuters on Tuesday that the Senate would finally move on a crowdfunding act that had been passed by the House in November.

  • February 29, 2012

    By definition, rare diseases are hard to diagnose, receive little research funding, and are challenging to treat. One organization is trying to change all that through a crowdfunding model specifically aimed at helping those with the nearly 7,000 rare diseases in the U.S.

  • February 28, 2012

    Senate majority leader Harry Reid announced plans on Tuesday to push forward legislation to spur capital formation for small businesses, an issue that has spawned a rare showing of bipartisanship.The Nevada Democrat said the Senate Banking Committee would hold a hearing on small business growth next week and...
     

  • February 27, 2012

    The recent success of the Order of the Stick Kickstarter project has shown that crowdfunding can provide funding for authors at a level equal to or higher than traditional publishers’ advances. It is certainly an exciting time to be an entrepreneurial author. But what about the entrepreneurial agents? How might their role change to take crowdfunding into account?

  • February 14, 2012

    Alex Andon’s interest in jellyfish went beyond his fascination with their hypnotic, graceful movements. Where most people would admire the sea life and leave it at that, Andon saw an entrepreneurial opportunity.  In 2008, he designed a special aquarium with regulated water flow that would prevent the water pump...
     

  • February 10, 2012

    It's been a huge day for the crowdfunding platform, Kickstarter, which saw its two most-backed projects reach $1 million in pledges within four hours of each other yesterday. The first project to reach the one-million-dollar threshhold was the Elevation Dock, an iPhone dock, which got its million from more than 9,000 backers. It hit the number at about 2pm West Coast time.

  • February 06, 2012

    Is crowdfunding right for your project?
    From my introductory essay, you can already get the sense that I'm pro-crowdfunding. But let's be honest with ourselves, in an ideal world where everyone has access to easy, no-strings attached money, no one would look for outside funding. Just like seeking out loans or investors, there are pros and cons to crowdfunding your project.

  • February 03, 2012

    The underpinning principle behind crowdfunding is to get lots of people together to pool modest sums of money in order to collectively back a person, project, or idea. It’s still a relatively new phenomenon that has been made possible by sites like US-based Kickstarter and Crowdfunder in the UK.

  • January 13, 2012

    In early November, the U.S. House of Representatives overwhelming passed the Entrepreneur Access to Capital Act, a crowdfunding bill which permits startups to offer and sell securities via crowdfunding sites like Kickstarter or social networking sites like Facebook. As I discuss below, this is a game-changer for startups and lifts certain...

  • January 03, 2012

    While the year of the protester has just passed, 2012 looks to be the year of the entrepreneur.
    Jobs are in scarce supply, and underemployment is at an all-time high. Things look bleak. But, truth be told, there has never been a better time for individuals to start new businesses. Taking up entrepreneurship is now an extremely...

  • January 01, 2012

    Legislation that would allow companies to raise capital online in increments of up to $10,000 per investor sailed through the House in early November by a 407-17 vote. But the momentum to allow so-called “crowd funding” has slowed considerably in the Senate, as lawmakers mull whether unsophisticated investors are vulnerable when capital formation...

  • December 19, 2011

    Since the crowdfunding bill, officially called the HR-2930 Entrepreneur Access to Capital Act, was accepted by the House on November 2nd, and is expected to pass in the Senate any day now, we’re all wondering what this really means for small business fundraising. Is this the access to fundraising start-ups need from the SEC? With sites like...

  • December 08, 2011

    Today, the White House announced administrative and private sector actions that will help entrepreneurs grow their businesses and create jobs by increasing their access to capital and resources. The U.S. Small Business Administration (SBA) is moving forward with launching a $1 billion Early Stage Innovation Fund, originally announced as part of Startup America, which will provide matching capital to Small Business....

  • December 08, 2011

    Republicans and Democrats may finally agree on something: Small business owners and entrepreneurs need better and more plentiful opportunities to gain access to capital, grow their businesses, and create more...

  • December 06, 2011

    In a rare spark of bipartisanship, Republicans and Democrats alike are eager to invigorate job growth with an idea first pioneered by unsigned rock bands that used Internet donations from their fans to “crowdfund” their tours and recording sessions.  Now, Sen. Scott Brown (R-Mass.) is proposing crowdfunding as a way for start-up companies to land investors.

  • December 05, 2011

    The ebb and flow of venture capital, IPOs, angel funding, and private equity investing makes forming a feasible startup challenging at times. It often depends on recent successes; when startup success stories start heating up, the money flows. When things start looking bad or people lose money, the cash often dries up quickly...

  • December 05, 2011

    Are you familiar with “crowd-funding?” You should be. I have been following the progress of new crowd-funding platforms in recent months, and it is now clear that this new financing mechanism can help strapped early-stage ventures, especially social enterprises. In case you’re hearing...

  • November 27, 2011

    After getting laid off from an architecture firm in 2009, Margot Broom tapped her savings to open a yoga studio in New Haven, Conn., called Breathing Room. But when she was forced to relocate the business two years later, Ms. Broom couldn't afford to renovate the new space she had in mind—until she discovered crowdfunding, the practice of securing small amounts of money from multiple contributors online.

  • November 19, 2011

    ON NOVEMBER 3rd, surprisingly, a bill was passed by the House of Representatives with strong bipartisan support. The Entrepreneur Access to Capital Act aims to make it easier for small businesses to raise money through “crowdfunding”. For the first time ordinary investors would be allowed to put up to $10,000 in small businesses that are not registered with the Securities and Exchange Commission, enabling Joe Schmo to win big if the company becomes the next Google.

  • November 17, 2011

    SEC Forum on Small Business Capital Formation

  • November 11, 2011

    The Internet is a powerful fund-raising tool for politicians and charities, but when aspiring entrepreneurs try to use it to raise money, they run afoul of securities laws.  Most members of the U.S. House of Representatives have decided they want to change that. Last week, on a 407-17 vote, they approved a bill that would legalize so-called "crowdfunding" for firms raising as much as $2 million a year. Individual investments could be no more than $10,000, or 10 percent of a person's annual income.