Awaiting the SEC rules regarding the new JOBS Law.
Equity CrowdFunding will likely hit around Jan. 1st, 2013
We will continue to review crowdfunding websites for donations and
art related project leading up to the coming of equity crowd funding.
Expectations are for initially hundreds of Equity CrowdFunding Websites
to come online in just the first few weeks following the SEC rules.
We are preparing to give you all the Crowd Funding Website information
you need to make an informed choices for either your small business capital
funding needs or the proper crowdfunding site for your investment goals.
Equity CrowdFunding websites will be marketing based on location, type of business,
minimum investment and amount of capital to be raised. Along, I’m sure, with quite a few niches we have not yet seen.
What Disclosure will be required of small businesses offering an equity crowdfunded offering?
Crowdfunding Intermediaries will be required to perform background checks on issuing companies to reduce fraud and ensure that potential investors understand the risks involved. In addition, the issuing company will need to publicly disclose information related to the offering, such as their business model, the company’s capital structure, plans for the funds, and a description of the financial condition of the issuing company for the preceding years. The level of detail varies depending on the size of the offering: companies raising over $500,000 will have to provide audited financial statements, where companies raising between $100,000 and $500,000 will need reviewed financial statements and finally companies raising under $100,000 will need provide self-certified financial statements and the company’s latest tax return. Additionally, issuers will not be allowed to advertising the crowdfunding offering, except for directing potential investors to its funding portal or broker-dealer.
Crowdfunding investors won’t count as holders of record, allowing the company to potentially have thousands of shareholders without triggering public company reporting requirements under the Securities Exchange Act of 1934. That said, a crowdfunded company will need to prepare an annual report for its investors and the SEC. The JOBS Act directs the SEC to prescribe the specifics required in the annual report, but provides little guidance on how demanding the SEC may make i
You will need guidance and opinions on which Equity CrowdFunding Website to use.
We look forward to helping you decide and offering a place for you to share your personal
comments and reviews based on your crowd funding platform experiences
While Equity Crowdfunding platforms are waiting for the SEC to put rules in place based on the JOBS Act of 2012, there is currently one site that is offering equity crowdfunding. IPO Village has a game changing concept, they are offering NASDAQ traded IPO’s to market utilizing a crowdfunding platform. The advantage is a “first come, first serve” offer for the average investor to buy in at pre-IPO pricing. Something that is not available to the average investor in the marketplace today. This also includes an average of a 22% cost reduction in the price by bringing these offerings directly to the public, rather than through a syndicate of underwriters and investment bankers. Take a look at IPOVillage.com for more detailed information.
Classic IPO Process before crowdfunding
