$40M raised through regulation crowdfunding in first year

On May 16 of last year, the Securities and Exchange Commission (SEC) finally allowed both accredited and non-accredited investors to engage in regulation crowdfunding. Under the new SEC rules, startups and other private companies could offer equity in return for capital to help support business growth. As of May 2017, total contributions under the regulation crowdfunding into startups and small businesses are over the $40 million mark with an average investment of $833 per investor.

Innovative Funding at the Edges

Venture development organizations are reaching into new territory for funding partners and finding success in innovative models. Two new funds, the San Diego Tech & Life Science Investor Syndicate and Rev1 Fund I in Columbus, OH, have recently opened with less traditional funding sources, testing the waters of crowdfunding and heavy corporate backing, respectively. The San Diego fund, launched by CONNECT, allows anyone wanting to invest $1,000 the opportunity to participate alongside more experienced lead investors.

After Over Four Years of ‘Anxious Waiting’, Equity Crowdfunding Goes Live

After over four years of “anxious waiting,” equity crowdfunding is now legal across the U.S. allowing non-accredited investors to make equity investment in startups through a registered online portal. With the adoption of the final rules for Title III of the Jumpstart Our Business Startups (JOBS) Act, the U.S.

Early Stage Capital Measures Pass in KS, TN, and WV, In Limbo for AZ and ND

A mixture of success and trepidation accompanied 2016 legislation introduced in  several states to create, extend, or recapitalize angel tax credit programs. While legislation in Arizona’s legislature failed due to a lack of support, angel tax credit bills in Kansas and Tennessee passed easily with broad support from their governors, lawmakers, and the public. In North Dakota, the state’s angel tax credit program faces an unclear future due to concerns about transparency and oversight. To stimulate investments in West Virginia’s startup community, Gov.

Tech Companies Raised $225M on Rewards-Based Crowdfunding Platforms in 2015, Report Finds

Technology companies raised $225 million globally on rewards-based crowdfunding sites in 2015, according to a new report from the UK-based Crowdfunding Centre. In State of the Crowdfunding Nation, the Crowdfunding Centre reported that reward-based crowdfunding sites helped raise over $1.5 billion worldwide between the calendar years of 2014 and 2015. Global rewards-based crowdfunding campaigns raised $823.5 in 2015 million (a 20 percent increase over 2014) from nearly 10.2 million backers.

Crowdfunding, Accredited Investor Definition Changes May Shape Startup Investing in 2016

In late 2015, the U.S. Securities and Exchange Commission (SEC) released two rule changes that may shape the future of equity investments in startups and small businesses. The two new rules directly address issues related to the accreditation of investors – an important element of the angel investment ecosystem that has long driven early stage investments in startups. In December, the SEC released a report on proposed changes to the definition of accredited investors.

SEC Adopts Rules to Permit Equity Crowdfunding for Non-Accredited Investors

On April 5, 2012, President Obama signed Jumpstart Our Business Startups Act (JOBS Act) into law with the intent of helping small businesses and startups raise capital through several changes to long-standing securities regulations, including a change that would allow companies to raise equity from both accredited and non-accredited investors through a publicly solicited crowdfunding campaign (Title III of the Jobs Act).

Online Platforms, Global Networks Drive Globalization of Angel Capital

The last decade has seen a rapid expansion and deepening of the types of vehicles that fund startup firms in the U.S. and worldwide, according to The Globalisation of Angel Investments – a new study from Josh Lerner, Antoinette Schoar, Stanislav Sokolinksy, and Karen Wilson. In particular, the authors have seen a growing role for angel groups and other more “individualistic” funding options, such as super angels or crowd sourcing platforms.

MN Adopts Equity Crowdfunding; MD Organizations Announce Partnership Crowdfunding Portal

Last month, Minnesota Gov. Mark Dayton signed the MNVest bill – an intrastate securities exemption that allows Minnesota-based companies and entrepreneurs to raise money through equity crowdfunding. To qualify for the exemption, businesses must show evidence of several requirements including being organized under state laws and that its principal office is located in Minnesota. Companies can raise capital from both accredited and non-accredited investors from across the state.

Five Canadian Provinces Adopt Equity Crowdfunding Exemptions

The Canadian Securities Administrators (CSA) announced that securities regulators in five Canadian Provinces have agreed to CSA Notice 45-316 – a common set of rules that will allow startups to raise up to $500,000 CD (approximately $401,600 USD) per year from unaccredited investors via authorized Canadian-based funding portals.


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