Revision Legal discusses the Georgia crowdfunding exemption, also known as the Invest Georgia Act, and its interplay with the Jobs Act.Read More →
The concept of crowdfunding, seen as the next phase in the democratization of finance, has captured the attention of investors, entrepreneurs, technologists …Read More →
The industry landscape will change drastically in the upcoming decade, leading to the emergence of novel sources of economic growth, new kinds of jobs, and different lifestyles.
That, at least, is the claim the Zurich Group, an insurance provider, made in a recently released infographic. The graphic, titled ‘Navigating the Future of Industry,’ shows some of the current trends that will influence “the next decade of America’s economic evolution.”
Crowdsourcing figures to mesh well with the emerging industries that Zurich highlights. Take, for instance, 3D printing: Zurich claims that additive manufacturing technologies will allow production to “take place not only ‘in America’ but ‘in the home.’”
Crowdfunding and 3D printing can form a powerful combination, as we have written in the past. Aside from enabling entrepreneurs to raise money for nifty gadgets and art pieces, the fact that items can be easily customized will allow campaign owners to create truly unique backer rewards. And members of the crowd are already coming together and sharing designs for new 3D printed gadgets; sites like Thingiverse will only get bigger as the technology become more affordable and ubiquitous. Even today, companies like Shapeways are showing how to monetize crowd-driven additive manufacturing.
Another trend Zurich mentions is the migration from cities to rural areas, which will “see expansion of opportunity as new destination travel experiences focus on local strengths.” Equity crowdfunding also looks likely to bolster local economies, as mom-and-pop shops or restaurants can raise money from their devoted customers. Because localized crowdfunding is more resistant to fraud (it’s easier to conduct due diligence on a company that’s around the corner, than on one that’s two states away), many backers will be compelled to invest in their backyards rather than look at faraway firms.
The last emerging trend Zurich highlights is mobile technology and big data, focusing specifically on the medical field. Here, crowdsourcing can play a role, too, as a way to sort through terabytes of data. Meanwhile, savvy entrepreneurs (like the creators of the American Gut and uBiome Indiegogo campaigns) are already making use of citizen science and crowdfunding for medical research.
That’s not to say the outlook is all bright. Regulatory issues may hamper 3D printing, for example, when companies begin to lobby against pirating (much like Hollywood studios fight against file-sharing sites today). But it’s hard to deny that there are many new exciting opportunities ahead, and crowdsourcing can play a big role in supporting the new industries.Read More →
Craft beer and other investments made possible by JOBS Act will be motivated in part by a desire to become an owner of favorite brands.Read More →
Social resumes are nothing new — and we’ve seen impressive ones popping up in recent months. From an online application mimicking an Amazon product page and interactive infographics to a 6-second video via popular app Vine, job seekers have been thinking creatively about how to brand themselves and stand out in a competitive market.
But this one from recent college graduate Jannic Nielssen is unique in that he is embracing a layout and concept inspired by crowdfunding website by Kickstarter to help land him a career. Nielssen, a communications graduate from Decatur, Ill., is a dual citizen of Jamaica and Norway, and has a goal to receive an employment offer by May 1 or he will have to leave the U.S Read more…Read More →
Editor’s Note: The following guest post is by David Drake, founder and chairman of LDJ Capital, a New York City private equity firm, and of The Soho Loft, a global financial media company with divisions in Conferences and Publishing.
In March, Mary Jo White’s nomination to head the Securities and Exchange Commission received bipartisan support from the Senate Banking Committee with a strong 21-to-1 vote in her favor, thereby sending her pick practically unhindered to the full Senate for a vote. Monday, April 8 she was inducted as the Chair of the SEC and now our attention turns to whether she will accelerate and conclude the outstanding JOBS Act bills.
My prediction is that she will conclude Title II of the act which was due July 4, 2012 and which allows general solicitation under Reg D, 506 but not Title III of the JOBS Act for equity crowdfunding. The latter prediction is based on the SEC DC Circuit SEC Dodd Frank defeats stemming from insufficient cost/benefit analysis.
As a New York federal prosecutor and the first female U.S. attorney in Manhattan, Ms. White carried out tough and aggressive crackdowns on terrorism and organized crime, and vows to take the same hard-line stand with Wall Street. At her confirmation hearing, she said that it would be a high priority throughout her tenure to further strengthen the enforcement functions of the SEC, adding, “It must be fair, but it also must be bold and unrelenting.”
I predicted her nomination would be a possibility in both my articles last December, entitled “Obama’s 10 Steps with SEC & FINRA to Legalize US Equity Crowdfunding” and in the follow up article in peHUB last month. April 5 was the one-year anniversary of the JOBS Act and heavy discussions are expected around this topic. I expect Ms. White to be up-and-running and fully informed as SEC Chair by May.
The JOBS Act has two out of its six underlying sections remaining to be implemented. As noted earlier, one is Title II which allows general solicitation of private shares under a Reg D, 506 offering – the most common offering for funds and companies in the US and these offerings represented $900 billion in 2011. Title III would allow equity crowdfunding and, while it is is not expected to move forward as quickly as Title II, supporters are still hoping Mary Jo White will conclude Title III in 2013.
It’s unfortunate, but Title III is now lagging as Italy’s CONSOB (SEC equivalent) announced last month that they were taking public comments on their first crowdfunding law for equity. This law is unique as it would be the first law implemented in the world specifically created for the phenomenon known as equity crowdfunding without a ceiling of $1 million as proposed under Title III of the JOBS Act.
Former SEC chairwoman Mary Schapiro stepped down from the SEC post last Dec. 14 and Commissioner Elisse Walter took the chair in the interim. Meanwhile, no proposal was then submitted until the new chairwoman was chosen.
Now that Ms. White is in place, the financial markets are eager to see her stance on these two fractional remaining laws which are now overdue by as much as nine months.
Ms. White, we welcome you to the helm of the SEC. We expect strong enforcement and we hope for swift resolutions on the remainder of the JOBS Act. Mary Jo White may very well be the chair we need for the job.
However, her biggest obstacle to concluding the JOBS Act implementation is reflected in the challenges the Dodd Frank Act has faced. The Dodd Frank regulation had imposed investor protection requirements and broker dealers sued SEC and won based on the view that the mandatory Cost/Benefit Analysis SEC has to conduct by law was not robust enough and did not satisfy investor protection requirements. These lawsuits recently upheld by the DC Circuit Court challenges the SEC to efficiently continue perfunctory or pro forma manner analysis on regulation. This same argument applies to Title III and whispers indicate that the opposing faction to equity crowdfunding – the North American Security Administrators Association (NASAA) – may very well leverage it in their objections. This is a concern for Mary Jo White to consider as she takes office in May.
For more updates on the global crowdfunding industry, latest information on alternative investment activities and events, or if you have comments about this article, you can leave your comments here or reach out to me directly at David@LDJCapital.com. Thank you.Read More →
Crowdfunding expert Kendall Almerico notes that with rewards-based crowdfunding, people and businesses have an alternative source of financing businesses without giving away equity, as well as a means to finance development of new products, artistic endeavors and much more. With the Jumpstart our Business Startups Act (JOBS Act) regulations being released by the SEC in the coming months, Almerico says that American businesses will be able to sell equity online up to $1 million, and this will spur on even bigger growth of crowdfunding online.
SOURCE:http://www.prweb.com/releases/2013/4/prweb10642797.htmRead More →
Silicon Valley didn’t believe in actor-investors, just a few years ago. Then Ashton Kutcher stepped in and started making a bunch of smart, well-informed bets. He has money in Skype, Foursquare, Flipboard, Airbnb and Path, as well as less consumer-y startups like Optimizely and MemSQL. He’s continued into a solid range of earlier-stage startups via his own investment fund, A-Grade.
He’ll be joining us at Disrupt New York to talk about his firm’s current approach to investing, and the trends and products he’s thinking about these days. And, he may share a little more about the Jobs movie he’s been working on.
Ashton joins our list of Disrupt NY speakers that currently includes Chamath Palihapitiya, John Donahoe, Roelof Botha, and Ron Conway, with more to be announced. Tickets and Startup Alley packages are available here.
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Ashton Kutcher is an actor, tech investor and producer. In 2011, Kutcher created a venture fund, A-Grade Investments, with Ron Burkle and Guy Oseary. A-Grade has invested in multiple tech companies including Spotify, Airbnb, Foursquare, Fab, Uber, Dwolla and Path. Kutcher is also co-founder of Katalyst, a media company creating original content for digital media, television and film. In 2010, Kutcher was named one of Time Magazine’s Top 100 Most Influential People. In that same year, his company, Katalyst, was named one of the year’s Top 50 Most Inspiring Innovators by Ad Age and one of Fast Company Magazine’s Top 10 Most Innovative Companies.
Currently Kutcher stars in the CBS comedy series “Two and a Half Men”. Averaging over 14 million viewers per week, the show ranks as the second most-watched comedy on all of network television. Kutcher first gained recognition as Michael Kelso on the Fox/Carsey Werner series “That 70’s Show”, which aired for eight seasons. Kutcher went on to star in a variety of box office hits on the big screen, including “What Happens In Vegas” with Cameron Diaz, “The Guardian” with Kevin Costner, “Valentine’s Day”, “No Strings Attached” with Natalie Portman and the cult hit “Dude, Where’s My Car?”. Kutcher has long been recognized for his tech investments and social media prowess, beginning with Twitter. In 2009, he was the first Twitter user to obtain 1 million followers, beating out CNN in a highly publicized race.Read More →