7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Startup investors have no insight to management or governance. crowdfunding equity funding qualms startup

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Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Since government grants are funded by tax dollars for specific industries and research, usage of grant funds is carefully monitored.

How Federal Government Can Help Entrepreneurship

Feld Thoughts

Over the past few years, I’ve spent some time thinking about how the government can help entrepreneurship. It started with my role as the co-chairman of the Colorado Governors Innovation Council which was my first involvement in any formal way with any government initiative. “ On my run yesterday, I mulled over the big activities that I thought the federal government could do to “build a more supportive environment for entrepreneurship.&#

Why Governments Don’t Get Startups

Steve Blank

Unlike small business entrepreneurs, their interest is not in earning a living but rather in creating equity in a company that eventually will become publicly traded or acquired, generating a multi-million-dollar payoff. but then the government got out of the way.

Are You Ready for Equity Based Crowdfunding?

Up and Running

Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways.

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Reasons For Surge In Mexico’s Private Equity Industry

YoungUpstarts

For years Mexico lagged behind a lot of other Latin America countries when it came to private equity. As well as this, their private equity investments have surpassed the likes of Russia and Turkey – meaning that the nation is slowly but surely becoming a real force.

Don’t Expect An Equity Investor For Your Non-Profit

Startup Professionals Musings

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Government grants. equity funding investor non-profit philanthropist

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Do Venture Capitalists care how the equity is split among the founders?

Gust

People who tell you that VCs won’t look at a company with an even equity split are being silly. Realistically, if a company is jointly governed by two people who have exactly equal say, it is quite possible that if there is a major disagreement the company will implode because it will not be able to take action. Invested Interests Angels equity split Founder equity investors startups VCs

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What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

Uncategorized equity markets government regulation regulatory barriers Secondary marketsParts of the answer are that (a) there are enormous regulatory requirements relating to secondary markets, and (b) there are no analysts tracking private company stocks.

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers.

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Entrepreneurial opportunities in the vaping industry

The Startup Magazine

Eventually the private equity firms and multinationals take over and it becomes harder for a marginally-funded startup entrepreneur to compete, but for that brief, glorious time, the opportunities seem endless.

Alibaba S-1: How Alibaba Is Governed Like China’s Politburo

Agile VC

Some context… like many startups, the founders of Alibaba still own substantial stakes in the company and believe it’s in the company’s best interests for them to retain an outsized influence in the company’s governance longer term.

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SEC Releases Rules for Equity-based Crowdfunding

SiliconHills

The Securities and Exchange Commission on Wednesday released its long-awaited proposed rules governing the practice of equity-based crowdfunding that allows startups to sell securities directly to the public. Legislation from the JOBS Act, signed into law by […] The post SEC Releases Rules for Equity-based Crowdfunding appeared first on SiliconHills. Early next year, startups may be able to raise money from the general public to finance their ventures.

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How we changed the way the U.S. government commercializes science: Errol Arkilic — Part 1 of Episode 6 on Sirius XM Channel 111

Steve Blank

In my interview with Errol, we discussed the origins of the National Science Foundation Innovation Corps (I-Corps), how and why it was created, and how it changed the way the government commercializes scientific research. government needs your help,’ and I remember saying, ‘The U.S.

Microcredentials for the Effective Venture Capital or Private Equity Investor

David Teten

I’ve also published research here on private equity , venture capital , hedge funds and mutual funds , and angel investing , as well as on fund management : origination , due diligence , investment research , and portfolio acceleration. TheDeal Corporate Governance Conference. The post Microcredentials for the Effective Venture Capital or Private Equity Investor appeared first on David Teten. Asset Management Career Fund Management Private Equity Venture Capital

How Venture Capitalists and Government Can Promote Entrepreneurship

David Teten

I’ve recently met with several universities, nonprofits, and government employees who’ve all asked the same question: how can we promote entrepreneurship? The first and primary role of a government is to provide basic public goods competently.

How we confused the role of Government and Business

Start Up Blog

“We have come to rely upon capitalism for justice and the government for economic stimulation, precisely the opposite of what reason would suggest. It is the job of government to channel that energy and growth into socially useful avenues, without stifling what it seeks to channel. That’s the basic problem of our form of government: how to achieve a balance between economic vitality and justice. This is what is wrong with our current form of Government.

Response to the budget and some thoughts on what government can do for startups

The Equity Kicker

I think I’m right in saying that this is the first guest post we’ve ever had on The Equity Kicker and it’s from my partner Simon Cook who has a few things to say about the budget.

Incorporating Your Business: Tips to Follow

The Startup Magazine

Going the LLC route, you are not obliged to pay corporate taxes; instead, you will be governed by a pass-through taxation system. In case you need to set up corporate governance for your business, McQuarrie is one firm you might want to consider.

Raising Capital from Friends and Family: Gifts, Loans, Equity

Business Plan Blog

Raising Capital from Friends and Family: Gifts, Loans, Equity. Typical sources of capital include personal saving, home equity loans and loans or investments from “Friends and Family.” This equity is typically in the form of preferred equity (i.e. Equity.

Fixing immigration for startups: What the US government can (and should) do right now

The Next Web

to receive undergraduate and graduate degrees (education that is in part supported by all Americans, even in private schools, as schools get huge tax breaks and are often funded at least in part by government grants). government plan.

Big Media, Big Government, Big Business, Big Problems

Growthink Blog

Depending on how you slice it, this is either a golden or a leaden business age. It is a golden age, as never before in human history has there been so much access to great opportunities as there are right now.

VC Governance FAQ: (5) How are VC funds governed differently from the governance standards applied to their portfolio companies?

Pascal's View

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Please differentiate between the governance of a VC fund versus the governance of companies in a VC fund’s portfolio?

5/25-NYC – Investing in Intellectual Capital: Patents, Trademarks, Domain Names, Litigation, Government Rights, and other Intangible Assets

David Teten

I’m excited about the program below on “Investing in Intellectual Capital: Intellectual Capital: Patents, Trademarks, Domain Names, Litigation, Government Rights, and other Intangible Assets” Click here to make a reservation.

Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. Broadening the Base Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Funding is the lifeblood of any small business.

6 Funding Sources For Good Causes, Without Angels

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment.

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Government grants.

Professional Investors Qualms About Crowdfunding

Startup Professionals Musings

Granted, all the experience so far has been without the most anticipated feature of the JOBS Act – Equity Crowdfunding (Title III) , effective a few days ago with 685 pages of rules. Investors cannot verify accountability or governance.

Working for Equity Instead of Cash

genylabs.typepad.com

Emergent Research works with corporate, government and non-profit clients. Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. At the same time I had equity in a company that was in horrible shape with no hope of survival. government policy.

Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. So why would you treat your debt investors (somewhat) like equity investors? I beg of you, treat your debt holders like equity holders, and utilize their expertise to help further your business.

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VC Governance FAQ: (2) Especially now, when transparency is so important, why is limited financial information available from a private company?

Pascal's View

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: At a time when transparency is so important to institutional investors, how can fiduciaries reconcile that there is limited information available with a private company?

VC Governance FAQ: (1) How much information are limited partners (pensions, endowments, foundations, etc.) entitled to receive from a VC fund?

Pascal's View

It’s that time of the year again– time to send out audited financial statements and K-1’s to your limited partners– which means it’s also a great time to address some of the common questions that investors raise about VC partnership governance and disclosure issues.

VC Governance FAQ: (9) Does an anemic IPO market deter VC investing?

Pascal's View

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Do you think than anemic IPO market will remain a deterrent to VC investing? equity markets. equity capital markets must be structured with the goal of promoting the growth of publicly held small businesses in America. This problem goes way beyond venture capital—as 47% of all IPO’s since 1991 were backed by neither VC’s or private equity firms—this is an American problem.

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The Latest Questions Small Businesses Are Asking

Up and Running

Part of a venture feasibility study is to look at what financial resources are already available in personal bank accounts, equity in a home, life insurance, family and friends or from selling assets. How do I sell my products to the federal government?

Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

To restate two core points of the article: While there are proper uses of notes (to bridge the company to achieve a major milestone, or driven by insiders’ willingness to extend runway), there also are troubling and frequent improper uses (to postpone pricing equity until valuation is higher or to ignore the implicit message associated with being unable to find a lead investor to price the round on terms that the founders like).

The Funding Gap

Gust

Government Grants. $3 US Government. Invested Interests angel investment angel investors entrepreneurs entrepreneurship equity financials funding gap fundraising startups valuation valuations venture capital

[Event] [Singapore] Techventure 2011: A Sign of Increasing Asian Technology Innovation

YoungUpstarts

“Increasingly, attention is shifting from established Western markets to our part of the world, and we believe Asia will increasingly drive venture capital and private equity activities in the future,” says Eugene Wong, chairman of the Singapore Venture Capital Association (SVCA).

Urban Technology: The Business of Smart Cities

The Startup Magazine

They hope to “solve tangled and wicked problems inherited in the rapid urbanization,” according to research from the Center for Technology in Government at the State University of New York at Albany. Smart cities are a new approach to urban development.

Equity Traders Acknowledge that Structural Issues Are Crippling U.S. IPO’s

Pascal's View

in 2011 is not statistically meaningful and irrelevant to the thousands of startups that are finding it impossible to reach the much greater critical mass necessary to access the public equity capital markets today.

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Stepping off the soapbox, let’s examine the highest level “To Do” list for a new startup: Formation, Governance and Equity. Adopt Bylaws and any other necessary documents to formalize the governance of Newco.

A Wake-Up Call for America– Free Webcast Discusses Systemic Market Failure in U.S. Equities and Formal Release of New Grant Thornton Study, November 9th 12:30 PM EST

Pascal's View

Share and Enjoy: Adult Education Corporate Governance Cyber Security Entrepreneur Foreign Policy Innovation VC Board Best Practices capital markets crisis IPO securities regulation small cap

The Rise of the Secondary Market for Emerging Growth Equities– Necessary But Insufficient

Pascal's View

My full answer to this question follows: Public companies with equity market capitalizations of less than $1 billion have been negatively impacted by these market changes—and within this group, companies with capitalizations of $500 million or less have suffered the most. So it should be no surprise to our government and to economists that we aren’t getting the job growth that we need in our tentative recovery from 2008—we need IPOs to create jobs.

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Do It Right The First Time: Avoiding “Janitorial” Legal Work

Gust

Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth. What: The foundational corporate formation, governance, equity issuance and intellectual property assignment documents. What is a startup really?

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