The crowdfunded securities of yesterday were rife with illiquidity. Today, secondary markets for crowdfunded securities have emerged and continue to grow.
Crowdfunding has evolved from rewards-based funding to equity crowdfunding under Title III of the JOBS Act. Is crowdfunding for you?
Equity crowdfunding developed under Regulation D matches startups with angel investors in weeks rather than months, shortening timelines all around.
In the first of three parts, discover the origins of crowdfunding, which started as rewards-based funding allowing investments in projects in return for rewards.
Editor’s Note: This is an updated version of a similar article, published in January of 2013. To view that article, click here. The JOBS Act Makes Raising Capital Easier Than Ever Signed into law by President Obama on April 5, 2012, the Jumpstart Our Business Startups Act (or JOBS Act) made it somewhat easier, and often […]
Thanks to equity crowdfunding, all Americans, not just the wealthy few, can invest in startups and small businesses via the internet.
The JOBS Act of 2012 opened the door for crowdfunding, which allows companies to collect small contributions to finance or capitalize a popular enterprise.
Observations about the Title III (Regulation CF) crowdfunding market, 10 weeks into the launch of this new asset class:
Stratifund currently rates fifty Title III (Regulation CF) offerings and five Title IV (Regulation A+) offerings. Both exemptions, derived from the Jumpstart Our Business Startups Act of 2012, allow all investors, non-accredited as well as accredited, to participate. Stratifund uses a proprietary algorithm, based on five broad criteria, to rate offerings on a scale of 0 to 5.
Nobody, in our opinion, should invest in seed-stage companies that raise capital under Regulation A+. This new securities exemption, based on Title IV of the JOBS Act of 2012, is structured primarily for growth- and later-stage companies.