Monthly Archives: September 2012

Where The Smart Money Is Going

One of the continuing questions regarding crowdfunding is how it will affect angel investing. A report on angel investing for the 1st half of 2012 shows: average pre-money valuations increased to $2.7M; median angel deal size has decreased 21% to … Continue reading

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No 50 Shades of Gray

There may be 50 shades of gray, but disclosure in a crowd funded offering will have to be black and white. For startups, the language must clearly delineate the current status of the project, the steps to be taken to … Continue reading

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Ride With Me

Why give equity if you don’t have to? A few new crowd funding websites are suggesting to companies seeking capital that the investment can be structured more as a loan, where the issuer pays the investors in revenue royalties (Urban … Continue reading

Posted in Banking, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, SEC, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , | Leave a comment

Caveat Donator (Donor Beware) !

Lack of accountability after the closing of a crowd funding campaign is starting to become a problem, especially for those who were lucky to raise more than their goal. In a scathing article about the singer Amanda Palmer, the Gawker … Continue reading

Posted in Charity, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, SEC, Small Business | Tagged , , , , , , , , , , , , | Leave a comment

When The Norm Is Failure

The Crowd Fund Act will require investor education and acknowledgement of risks. One of the risks will be that, based on a report in today’s (9/20/12) Wall Street Journal, 30% to 40% of “high potential U.S. startups fail,” failure defined … Continue reading

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Filmmaker Doesn’t “Want to Deal With Hollywood”

Hollywood is now taking note of crowd funded films. The gossip website Deadline.com reported that the Charlie Kaufman stop motion film “Anomalisa” raised a record $406,237 for its production in 60 days on the crowdfunding website Kickstarter. “We want to … Continue reading

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The 7% Loaf

German small businesses are selling bonds with their bread. The Mittelstand corporate bond market is paying about 650 basis points over the government bond rate. Many issuers don’t want to deal with their banks anymore. In 2011, EUR9.2 billion was … Continue reading

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Uh, Maybe Not

Thought for the weekend: Not every crowd generated idea is a good thing… http://www.indiewire.com/article/will-the-nfls-groundbreaking-stab-at-crowd-sourcing-be-a-touchdown-or-a-blocked-punt?utm_source=iContact&utm_medium=email&utm_campaign=Indiewire+Today&utm_content=

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You Promised!

Will an investor have recourse if a crowd funded company fails to perform as promised (and there’s no fraud)? Kickstarter’s policy is that if a creator can’t fulfill its project, it  should find a resolution, which could include offering refunds, … Continue reading

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Unintended Spawn of the CFA

As noted, the crowd funding portion of the JOBS Act appears to be creating a new brand industry that will support the capital raising concept of the Crowd Fund Act. Even before it has become legal, the CFA has spawned … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding Platforms, Jobs, Legislative Intent, SEC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , | Leave a comment