The recommended rules would, among other things, enable individuals to purchase securities
in equity crowdfunding offerings subject to certain limits, require companies to disclose certain information about their business and securities offering, and create a regulatory framework for the intermediaries facilitating crowdfunding transactions.
SeedInvest has been a leading innovator
in the equity crowdfunding industry since our inception in 2012 and we are continuing to develop new and innovative solutions to address the challenges posed by Regulation CF and Regulation A +.
Regulation CF enables individuals to purchase
securities in equity crowdfunding offerings subject to certain limits, requires companies to disclose certain information about their business and securities offering, and creates a regulatory framework for the intermediaries facilitating crowdfunding transactions.
In this clip from Industry Focus: Tech, Motley Fool analyst Dylan Lewis interviews Indiegogo founder Slava Rubin and MicroVentures founder Bill Clark — about how
investing in equity crowdfunding deals is different than investing in the stock market, and how companies like MicroVentures and Indiegogo perform due diligence on the projects and companies for which they enable funding.
Under the new regulations, firms
engaging in equity crowdfunding and peer - to - peer lending will no longer need to prepare a prospectus or an investment statement before raising funds from the public.
OurCrowd has raised over $ 80 million
in equity crowdfunding for its 50 portfolio companies which include leading companies, such as: BillGuard, Consumer Physics (SCiO), BioCatch, Abe's Market and ReWalk, OurCrowd's first portfolio company to complete a successful IPO on the NASDAQ.
If you are an accredited investor you may invest up to $ 25,000 in any one offering under the Integrated Crowdfunding Exemption with a maximum aggregate amount of $ 50,000 in a 12 - month
period in all equity crowdfunding offerings by different issuers.
This figure was obtained by the fact that when asked to indicate their level of
interest in equity crowdfunding on a scale of 1 to 10, 58 % were in the range of 7 to 10.
The changes to the Canadian securities laws if adopted would allow the general public to invest
in equity crowdfunding online, and companies to offer small amounts of equity with less disclosure thus driving the cost of raising capital lower and widening participation at the same time.
As one of Canada's most advanced equity crowdfunding platforms, ConsiderFunding provides the resources and access for businesses and investors to learn, navigate, and participate
in equity crowdfunding within the Canadian capital - raising ecosystem.
Given Forbes» designation of SeedInvest as one of the «leading
players in equity crowdfunding» a few weeks ago, it may not have come as a surprise that SeedInvest was included on the list of Top Contenders in 2013.
Creativity in equity crowdfunding should not be thought of as taking a back seat, but when profitability comes into play, investors will likely make more informed decisions, leading to more sustainable business ventures.
Craig Asano, Founder & Executive Director of the National Crowdfunding Association of Canada (NCFA Canada), believes factors such as investment alternatives, investor and issuer risk profiles and the regulatory environment all play a role in determining the level of Canadian investor
participation in equity crowdfunding.
However, unlike in Japan and India where there are current regulations in place, China is yet to pass any
regulation in equity crowdfunding and in peer - to - peer lending.
In just over three years, OurCrowd has established itself as a major international
force in the equity crowdfunding industry, investing over US$ 320 million from its «crowd» of 16,000 accredited investors in its portfolio of 100 companies and five funds, which span major investment sectors including Mobility and Transportation, Machine Learning, Cybersecurity, Digital Health, Agtech, Big Data, and Robotics.
US industry stakeholders have already had over 6 months of pre-planning and business development lead time; conferences and connections have swept across the country in preparation for the green
light in the equity crowdfunding race in the United States.
We've already seen money managers looking to peer lending for higher return and I talked to a venture capital contact last week that said he is aggressively looking for
projects in equity crowdfunding.
Brian regularly consults with securities regulatory authorities in Canada about equity Crowdfunding as well as advises a number of clients seeking to
engage in equity Crowdfunding, including exempt market dealers, funding portals and Crowdfunding industry associations.
If you are not an accredited investor you may invest up to $ 2,500 in any one offering under the Integrated Crowdfunding Exemption with a maximum aggregate amount of $ 10,000 in a 12 - month
period in all equity crowdfunding offerings by different issuers.
However, on October 30, 2015, the SEC approved Title III of the JOBS Act, which will for the first time allow non-accredited investors to participate
in equity crowdfunding.
To participate
in equity crowdfunding, a company needs to register with the SEC and indicate how much capital they are trying to raise (up to $ 1 million in a 12 - month period) and for how much equity.
The SEC has yet to issue final rules for Title III which will allow non-accredited investors to participate
in equity crowdfunding.
May 25, 2016 Title III of the 2012 JOBS Act allows both accredited and non-accredited investors to participate
in equity crowdfunding.
Last year, the Swedish electric vehicle startup Uniti successfully raised about $ 1.5 million
in equity crowdfunding to help bring its minimalist city car, which it called «the most deliberate reinvention of the automobile in modern times,» closer to production.
Arguably one of the most important factors that innovators should keep in mind when considering whether to engage
in equity crowdfunding is that posting their ideas online could make them vulnerable to imitation.