Financial Poise

All articles tagged: Crowdfinancing Fundamentals

Crowdfunded Securities

Crowdfunded Securities: The Continuing Growth of the Secondary Market

The crowdfunded securities of yesterday were rife with illiquidity. Today, secondary markets for crowdfunded securities have emerged and continue to grow.

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Why Crowdfinance Is About Brand, Not Product

Want to start crowdfinancing? Creating a well-known, reliable and consistent brand is what makes investors want to give you their hard-earned money.

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Portals & Broker-Dealers

Two kinds of intermediaries may conduct Title III equity crowdfunding offerings and transactions: (1) funding portals that are not registered broker-dealers, and (2) offering platforms that are registered broker-dealers. Both kinds must be registered with the Securities and Exchange Commission (SEC).

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Fundamentals of Corporate Structures and Private Securities

Title III equity offerings are predominantly C corporation stock, limited liability company (LLC) membership units, convertible debt, and a relatively new structure called a simple agreement for future equity (SAFE). This article covers the fundamentals of each of these securities, and their advantages and drawbacks for investors.

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Business Plans, Part Two: 4 Business Plan Red Flags

This article takes a different approach from the previous one. Here I tell you about common omissions and mistakes in business plans, any of which should make you cautious about the company’s offering.

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crowdfund investing

Crowdfund Investing: The Newest Lottery or a Legitimate Asset Allocation Strategy?

Indeed, there is a lot about Wefunder that we like and the sentiment above is fairly typical of portals that will offer crowdfunding to non-accredited investors through Title III of the JOBS Act. It is precisely because the sentiment is common that we feel compelled to comment on it, though original our comment is not. We think New York Times columnist Andrew Sorkin was dead on back in April, 2012 when he wrote…

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