On May 16th 2016, the Title III of the JOBS (Jumpstart Our Business Startups) Act became a reality in the US. To reiterate this piece of legislature enables everyone to privately invest in startups online, and in the past I’d done my bit to allay some of the fears around Equity Crowdfunding.
DreamFunded, a Silicon-Valley based private tech stock market is now capitlising the recent changes in regulation. After releases its 7-Key Principles of Equity Crowdfunding, the team’s now preparing for USA’s first-ever Live Equity Crowdfunding Event:
You can witness this historic activity on July 7th on DreamFunded CEO Manny Fernandes Facebook page. The event will start off with an Investor Education seminar followed by the live crowdfunding event. Startups keen on raising upto $1 million can apply here. #exciting
This Month, it’s a year since President Obama signed the landmark JOBS (Jumpstart Our Business Startups) Act, one of the bills that’s set to introduce Equity Crowdfunding. This legislative changes will allowing any member of the public to invest in startups, currently possible only through a regulated IPO (Initial Public Offering) process. The new piece of legislation is expected to be used as a model for the rest of the world as well.
The US Securities Exchange Commission (SEC) was to have had the regulations in place by end December 2012, the stipulated 270 days since the passing of the bill last April. Now way past the deadline the SEC still continues to deliberate on the regulations, leading to some citing SEC could possibly overdo the legislation in its conservative approach – which defeats the purpose of the bill. However recent developments, especially the SEC’s ‘No-Action’ letter to a couple of firms have showed its keenness to easy regulation and enable funding from a larger pool. Here’s what the letter would mean:
So with Equity Crowdfunding expected to boom later this year, it’s time to look at what Crowdfunding thought-leaders have in mind. Many will be in Boston at the Thomson Reuters’ Innovative Investing Symposium 2013, an event part of the JOBS Act first anniversary. Among those present there will be promoters of Equity Crowdfunding legislations across the world, including those from Italy – which could ace the US with its legislative changes and implementation. We shall keep more than an eye on these and various other crowdfunding developments across the world. Feel free to reach out.