SEC Greenlights One Style Of Equity Crowdfunding For Startups
1–10 of 37 posts
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#2I love the idea, but what is the plan to keep fraudulent fundraisers away?
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#3Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very specific meaning that doesn't apply to crowdfunding.
It's pretty clear that WeFunder will need to be registered broker-dealers. I'm surprised they didn't do it already -- it's not a particularly expensive or time consuming process (and here in NY at least people set up BDs all the time because investment banks and most funds won't pay finder's or other fees to entities that aren't broker-dealers)
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#4I love the idea, but what is the plan to keep fraudulent fundraisers away?
Due diligence.
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#5I love the idea, but what is the plan to keep fraudulent fundraisers away?
FundersClub carefully vets all their companies; unlike platforms like IndieGoGo (which serves a different purpose), it's a very "hands-on" process with FundersClub ultimately creating an investment vehicle (LLC) for each company they feature.
More: https://thefundersclub.com/site/vetting/
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#6I love the idea, but what is the plan to keep fraudulent fundraisers away?
Extensive due diligence.
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#7I'm personally tremendously excited about FundersClub. It seems like they have the right mix of a hands-on, closed system (for fundraisers) and self-serve, open system (for accredited investors, more or less).
I am curious how much each startup has raised through the platform, though. They claim over $26m in total, split over (at least?) 8 companies: https://thefundersclub.com/site/pastinvestments/
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#8Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very specific meaning that doesn't apply to crowdfunding. It's pretty clear that WeFunder will need to be registered broker-dealers. I'm surprised they didn't do it already -- it's not a particularly expensive or time consuming process (and here in NY at least people…
Correct, FundersClub is a venture capital advisor (ie, a VC), and is not relying on JOBS Act exemptions or a broker-dealer registration. The TechCrunch article title is not technically accurate, though in their defense, people do seem to want to group online VC in with crowdfunding at a high level. There are important distinctions, however.
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#9Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very specific meaning that doesn't apply to crowdfunding. It's pretty clear that WeFunder will need to be registered broker-dealers. I'm surprised they didn't do it already -- it's not a particularly expensive or time consuming process (and here in NY at least people…
Yep - we (Wefunder) already have a broker dealer partnership and one of my cofounders has taken the Series 7.
Re: SEC Greenlights One Style Of Equity Crowdfunding For Startups
#10Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very specific meaning that doesn't apply to crowdfunding. It's pretty clear that WeFunder will need to be registered broker-dealers. I'm surprised they didn't do it already -- it's not a particularly expensive or time consuming process (and here in NY at least people…
Yep - we (Wefunder) already have a broker dealer partnership and one of my cofounders has taken the Series 7.
Out of curiosity, who are you using for finop (or is someone taking the 27)?