Texas Approves Equity-Based Crowdfunding Rules

SiliconHills

The Texas State Securities Board voted 4-0 on Wednesday to approve new intrastate equity-based crowdfunding rules. The […] The post Texas Approves Equity-Based Crowdfunding Rules appeared first on SiliconHills. Austin San Antonio Crowdfunding Rules equity-based crowdfunding Texas State Securities Board By LAURA LOREK Reporter with Silicon Hills News Texas companies will soon be able to raise money from the average investor.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Other folks, such as Mark Suster, have also written about whether convertible debt is preferable to equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds. Form of Convertible Security.

Trending Sources

Texas Proposes Equity-based Crowdfunding Rules

SiliconHills

Last year, Austin companies received $626 million in venture capital, or 49 percent of the venture capital dollars for Texas, said Michele Skelding, senior vice president of […] The post Texas Proposes Equity-based Crowdfunding Rules appeared first on SiliconHills. Austin San Antonio crowdfunding Greater Austin Chamber of Commerce Texas Securities Board

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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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Financing your business: Debt vs Equity

StartupCFO

VentureBeat wrote a post recently on debt versus equity which one is right for your business. So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Equity.

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

Convertible Equity, A Better Alternative To Convertible Debt? As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech. Gaming.

Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity.

Is making Equity Crowdfunding available to all a good thing?

Gust

Securities and Exchange Commission provides certain limited exceptions to allow individuals to invest in non-public companies. Perhaps the single biggest challenge faced by equity crowdfunding is the fundamental difference betwee “investing” and “supporting” A quick, impassioned discussion of this can be heard in my recent keynote at CROWDFUNDx: [link] g/blog/… *original post can be found on Quora @ [link] *.

Securing Startup Financing for Tech Companies

Early Growth Financial Services

This means giving up a large chunk of equity and potentially ceding a lot … Continue reading → Investment Capital: Equity / Debt / VC Funding This guest post was contributed by BJ Lackland, CEO of Lighter Capital. Recently Lighter Capital and VentureBeat teamed up to host a Fundraising Roundtable webinar examining fundraising options for tech companies.

What is Sweat Equity Worth?

www.entrepreneur.com

Technology Technology Home Online Business Tools Security Phones & Mobile Gadgets Tech Tips Technology The Future of Facebook -- Streaming Live Now. What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. As the business owner, you should be the expert on valuing sweat equity, not your investors, accountants or lawyers.

SEC Adopts New Equity-based Crowdfunding Rules

SiliconHills

Securities and Exchange Commission approved new crowdfunding rules last Friday allowing companies to raise money from anyone. The new rules allow companies to offer up to $1 million a year in securities through online equity-based crowdfunding portals. The difference is up until the change, only so-called accredited investors, high net worth individuals, could […] The post SEC Adopts New Equity-based Crowdfunding Rules appeared first on SiliconHills. The U.S.

Equity Endeavor Wants to Help Mom and Pop Shops Raise Funds

SiliconHills

Equity Endeavor set out to help startup businesses raise money through its equity-based crowdfunding site. And although that practice has been approved by Congress and signed into law by President Obama as part of the JOBS Act, equity-based crowdfunding still isn’t allowed. Securities and Exchange Commission has not yet signed off […] The post Equity Endeavor Wants to Help Mom and Pop Shops Raise Funds appeared first on SiliconHills.

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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Will New Equity-based Crowdfunding Regulations Cool the UK Market?

Early Growth Financial Services

New UK regulations for equity-based crowdfunding While the U.S. market waits for the Securities and Exchange Commission (SEC) to complete its rulemaking, new rules brought in by the UK’s Financial Conduct Authority (FCA) have divided the opinion of its peer-to-peer lenders and crowd-funding websites. It involves large numbers of people contributing small amounts over online platforms as equity investment or cash loans to support new business initiatives.

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Mass Venture of San Antonio Approved as Texas’ First Equity-Based Crowdfunding Portal

SiliconHills

By LAURA LOREK Reporter with Silicon Hills News Mass Venture is the first equity-based crowdfunding portal to receive certification from the Texas State Securities Board under its new intrastate crowdfunding rules.

CircleUp Draws More Investors As Equity Crowdfunding Gains Ground

Inc Startups

Ryan Caldbeck and Rory Eakin founded CircleUp, their equity-crowdfunding portal, in 2011, before the word " crowdfunding " would be printed in news without definition, and long before the U.S. Most typically these companies will exit to a private equity fund or strategic acquisition.

11/29/2014 - Superfund Equities Report

Chaganomics

11/29/2014 - Superfund Equities Report - www.tinyletter.com/superfund The fund sold F (Ford) and piled up on TASR (Taser), SWHC (Smith & Wesson), ZNGA (Zynga) and ABR (Arbor REIT) Citi Group''s Index unit is for sale - LINK OPEC''s meeting in Vienna this week shook the oil markets. Securities Upgrades/ Downgrades Progressive Waste Solutions Ltd (NYSE:BIN) was upgraded by analysts at Stifel Nicolaus from a "hold" rating to a "buy" rating.

Private Equity: Threat or Menace?

Inc Startups

Private equity is under attack in Presidential politics. If you let that affect your decision to accept private equity capital, you're out of your mind. What is surprising, though, is that the target of one of the attack ads is private equity. So, What is Private Equity, Exactly?

Startup Investor Makes a Deal: Engineers for Equity

mashable.com

“Once that product is built, you will probably have given away a lot of equity.&# Like a traditional capital fund, Kayweb Angels also has a board of directors that provides its startups with connections, guidance and help securing further funding. ); // Welcome to Mashable!

Use Equity to Hire the Best

Inc Startups

Equity grants are your most powerful tool for attracting top-tier talent. These executives already have generous salaries, good benefits, job security, and possibly even a decent amount of flexibility and work-life balance. Your weapon of choice, of course, is equity.

Rise Of Equity Crowdfunding To Boost Industry

ArcticStartup

The growth of technology crowdfunding investments will accelerate in coming years, boosted by increasing equity investments, research firm Juniper said on Monday.

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The 5 Key Stages of Equity Funding

Growthink Blog

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds.

“Why give up that much equity for an amount we could raise other ways?:” SMB Tech Talk from ArtJamz

Hunter Walker

But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. Why give up that much equity for an amount we could raise other ways?

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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.

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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.

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Debt Crowdfunding: The Real Potential When It Comes to Main Street USA

Up and Running

For the first time in 80 years, startups and small businesses can raise up to $1M from their friends, family, and customers via online websites registered with the Securities and Exchange Commission. Equity crowdfunding versus debt crowdfunding for Main Street businesses.

When to trade equity for services

The Next Web

Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally.

Private Equity And Venture Capital Investors: How to Leverage Their Pessimistic Thinking

Growthink Blog

Suggested Resource: In Venture Capital Pitch Formula , you'll learn exactly how to find and contact venture capitalists, exactly what information to include in your presentation, and how to secure your financing. I speak to my friend Steve about once a month.

SEC Enforcement Action Shows Regulatory Focus on Private Equity Managers

Recent Buzzes - VC Experts, Inc.

On August 29, 2011, the Securities and Exchange Commission took action against a principal partner (the "Partner") of a registered investment adviser to several private equity funds. [1]

Dancing the Political Brand Equity Tango on Social Media

crowdSPRING Blog

Last week, the Trump campaign found itself in hot water over a graphic it distributed on social media comparing the security threat of an increased refugee population on American soil to a bowl of Skittles with three poisoned candies in the mix.

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself?

Applicability Of Large Trader Rules To Private Equity Advisers

Recent Buzzes - VC Experts, Inc.

Securities and Exchange Commission (the " SEC ") has adopted Rule 13h-1 (the " Rule ") under the Securities Exchange Act of 1934 with respect to large trader registration. The U.S. The Rule requires persons that qualify as a "large trader" to file Form 13H with the SEC to receive a large trader identification number (a " LTID "). Large traders must identify themselves in future transactions to broker-dealers through which they trade, using their LTID

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“Why give up that much equity for an amount we could raise other ways?:” SMB Tech Talk from ArtJamz

Hunter Walker

But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. Why give up that much equity for an amount we could raise other ways?

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A primer on convertible notes, convertible securities, and equity

Hippoland

Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. The concept of equity rounds (also called priced rounds) is very straightforward. And as you raise money at later stages, you will most likely be raising equity rounds.

Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

The second approach is the most investor-friendly, and it is a provision that permits the noteholders to convert the notes into equity (or otherwise grants them a certain percentage of the sale proceeds), based on an agreed-upon valuation of the startup.

6 Ways To Increase Your Odds of Landing Venture Capital

Early Growth Financial Services

Running a growing tech startup with steadily increasing revenues might put you on the right track to being a successful business owner, but it doesn’t mean you’re on an easy path to securing venture capital. You might have a great idea, but an idea is not a product, nor is it … Continue reading → Investment Capital: Equity / Debt / VC Funding This guest post was contributed by BJ Lackland, CEO of Lighter Capital.

[Asia] Online Equity Crowdfunding Platform For Startups SeedAsia Sprouts In Shanghai

YoungUpstarts

Shanghai, China-based SeedAsia was officially launched in mid May as Asia’s first online equity funding platform for Asia-based technology startups.

Five Reasons Raising Capital Is More Difficult than It Needs to Be

Early Growth Financial Services

Securing funding for your growing startup can be surprisingly difficult. In that time, you’ll … Continue reading → Investment Capital: Equity / Debt / VC FundingThis guest post was contributed by BJ Lackland, CEO of Lighter Capital. With stiff competition for limited sources of financing, many entrepreneurs are left empty-handed, even if their metrics prove they have great potential.

Today's Webinar: Equity Investing in 2014

Growthink Blog

We’re hosting a webinar today at 4 pm PT about equity investing in 2014, and you’re invited to attend. To register, click here: https://www2.gotomeeting.com/register/638414410 On it, we will share some key statistics, especially that while from August 1982 to September 1999, the Dow Jones industrial average rose from 777 to 11,078, in comparison since 1999 it has moved only from 11,078 to 16,017 (approximately 44%).

April 4-Innovation in Private Company Liquidity-Online Merger Markets, Social Media, Secondary Markets, Non-US Markets, Private Equity, and the Disappearing IPO

David Teten

We will discuss liquidity options appropriate for a wide range of people with private company stock, including private equity funds, venture capitalists, angels, founders, and employees with options. Events Private Equity Venture Capital