article thumbnail

4 things to know about crowdfunding versus raising capital

The Next Web

While the latter is not yet legal in the United States, the JOBS Act, which was signed into law in April 2012, mandates that the SEC makes it legal by January 1st of 2013. They market it on their social networks, to their friends and family, and through press outreach. Image Credit: Oli Scarff /Getty Images.

SEC 146
article thumbnail

Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

Funding is the lifeblood of any small business. First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Second, the SEC prohibits general solicitation or advertising of the equity being sold. million U.S. million U.S.

Equity 88
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Socialware Raises $3M Series B

Austin Startup

Socialware continues to provide the technology, tools and thought-leadership to allow the financial services industry to activate social networks and is the #1 provider of social networking compliance tools for the industry. of FLOODGATE.

article thumbnail

ProfessorVC: Crowdfunding - Good Idea or Really, Really Stupid.

Professor VC

Since small businesses are responsible for the vast majority of new jobs, legislators believe that these new rules will make it easier for entrepreneurs to raise capital and ramp up hiring. These investments would be exempt from registration under the 1933 SEC Act. There is a reason the SEC exists. Steve Bennet.

SEC 54
article thumbnail

Episode 50: Video Content and Profitability with Seth David

Mike Michalowicz

and now schoolofbookkeeping.com is one of the leaders in the small business accounting world in online training resources offering courses on a wide range of software products. Seth makes extensive use of social networking tools, and web videos to maximize the impact of his training. Nerd Enterprises, Inc. CPA’s.

Video 60
article thumbnail

Winners and Losers in the Coming Crowdfunding World

Growthink Blog

3606 - the Jumpstart Our Business Startups (JOBS) bill, which includes provisions that for the first time legalize investment-based crowdfunding. The result will be that American small business will innovate and grow faster, and oh yes have the wherewithal to create the jobs and pay the taxes that fuel our whole way of life.

article thumbnail

Is the House Crowdfunding Bill Being Killed in the Senate?

Scott Edward Walker

House of Representatives voted 407-17 to pass the “Entrepreneur Access to Capital Act,” a crowdfunding bill which permits startups to offer and sell securities via crowdfunding sites like Kickstarter or social networking sites like Facebook. May Startups Raise Funds via Crowdfunding? How Does the House Bill Address These Issues?

SEC 65