Stratifund Rates 98 Crowdfunding Investments

Published on November 24, 2016

Six months after the launch of Regulation CF, NextSeed and Wefunder are the portals with the highest-rated Reg CF offerings, on average. By David M. Freedman ¶ Since May 2016, nearly 150 startups and early-stage companies have listed their securities – mostly equity but some debt as well – on more than a dozen crowdfunding portals operating […]

Hollywood Produces an Early Equity Crowdfunding Hit

Published on September 29, 2016

Editor’s note: Legion M calls itself the first “fan funded” Hollywood studio. It is an early success story of Title lll  (Reg CF) investment crowdfunding, attracting $1 million, the maximum amount the law allows. In the article below CEO Paul Scanlan describes how equity crowdfunding has changed the game for some big screen projects.   […]

Assessing the Title III Crowdfunding Market After 10 Weeks

Published on August 5, 2016

Wefunder Still Dominates the Market with over 40 percent of the Offerings By David M. Freedman Observations about the Title III (Regulation CF) crowdfunding market, 10 weeks into the launch of this new asset class: Investors have committed over $5 million to securities issued by startups and small companies under Title III since May 16, […]

Stratifund Rates 55 Crowdfunding Investments

Published on August 4, 2016

SeedInvest, Republic, Venture, and Wefunder are the portals with the highest-rated equity offerings. By David M. Freedman ¶ 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. […]

$100 Minimum Investment Levels Will Drive Socially Motivated Investing

Published on July 6, 2016

By David M. Freedman Crowdfunding investors will be more socially motivated than traditional, ROI-focused angel investors, especially in certain niches such as consumer products, retail companies, community-based businesses, and others. Driving this evolution is low minimum investment amounts – in many cases as low as $100. In traditional angel investments, before the Jumpstart Our Business […]

Who Should Invest in Seed-stage Companies under Reg A+?

Published on July 6, 2016

By David M. Freedman and Matthew R. Nutting ¶ 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. Prominent securities lawyers agree with us on this, but […]

SAFE: Simple Agreement for Future Equity

Published on July 1, 2016

With an emphasis on simple, this new equity security works for seed-stage startups By David M. Freedman Y Combinator, a well-known tech accelerator, created the SAFE (simple agreement for future equity) in 2013, and uses it to fund most of the seed-stage startups that participate in its three-month development sessions. Since 2005, Y Combinator has […]

45 Crowdfunding Deals Rated by Stratifund

Published on July 1, 2016

By David M. Freedman ¶  Stratifund aggregates and rates Title III (Regulation CF) and Title IV (Regulation A+) crowdfunding offerings, pulling from 9 different funding portals and broker-dealer platforms. Under Titles III and IV of the JOBS Act of 2012, all investors, including accredited and non-accredited, may invest in startups and growing small businesses. Annual […]

Title III Crowdfunding Investment Tops $2 Million in First Month

Published on June 15, 2016

Investors have committed about $2.05 million to 34 Title III offerings since the launch of Regulation CF crowdfunding on May 16, 2016, according to CF Market. That averages out to roughly $60,300 per offering. The average minimum funding goal for 38 Title III offerings (both equity and debt) tracked by Stratifund is about $135,000. (Most […]

32 Title III Offerings Rated by Stratifund

Published on June 12, 2016

By David M. Freedman ¶ Stratifund is the only site that aggregates and rates Title III crowdfunding offerings, as far as I know. It has posted ratings of 32 Title III offerings, involving both debt and equity. NextSeed, Wefunder, and SeedInvest are the portals with the highest-rated deals on average. Stratifund uses a proprietary algorithm […]

SAFE Discounts Should Be 50% At Least

Published on June 1, 2016

By David M. Freedman When Title III equity crowdfunding launched on May 16, 2016, a majority of the 20 equity offerings listed on Wefunder, the dominant Title III portal, used a new security called SAFE. That’s an acronym for simple agreement for future equity. The SAFE is like a warrant entitling investors to shares in […]

Wefunder Dominates Equity Crowdfunding

Published on May 24, 2016

By David M. Freedman ¶ When “true” equity crowdfunding launched on May 16, 2016, Wefunder led the new asset class with 10 Title III offerings. Within a few days it added 11 more offerings. No other funding portal that I know of has half as many Title III offerings as Wefunder. At the end of the […]

Webinar: Crowdfunding for Investors & Their Advisers

Published on May 18, 2016

“Crowdfunding from the Investor’s Perspective,” recorded in March 2016, is now available on-demand from Financial Poise Webinars and West LegalEdcenter. The one-hour webinar covers peer-to-peer (P2P) lending, Regulation D and Regulation A+ offerings, Title III equity crowdfunding, and intrastate securities crowdfunding. The webinar panel includes preeminently knowledgeable professionals in the crowdfunding industry: Charles Sidman earned a […]

Equity Crowdfunding Starts Today — Here’s Where to Find Startup Investments

Published on May 16, 2016

By Dave Freedman Today is the launch of equity crowdfunding. I’m talking about “true” equity crowdfunding under Title III of the Jumpstart Our Business Startups Act of 2012. Title III lets everyone invest in startups and growing businesses via crowdfunding portals. Here are four places to start looking for Title III offerings: Wefunder ( Wefunder […]

Don’t Rely on SEC to Screen Title III Offerings

Published on May 13, 2016

When offerings of securities appear on Title III crowdfunding portals on May 16, 2016, don’t assume those offerings have been reviewed and approved by the Securities and Exchange Commission. Although issuers of securities must file Form C with the SEC, showing many details of the offering with specific disclosures, the issuer does not have to […]