Startup Exemption

US House Approves Senate Version of Crowdfunding! Off to the President!

March 27, 2012 · Leave a Comment

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KQED Interview: Entrepreneurs Applaud ‘Crowdfunding’ Bill’s Passage

March 24, 2012 · Leave a Comment

It may soon be easier for small companies and start-ups to raise cash online. Congress has just passed legislation that opens the door for average people — no matter how rich or poor — to become an investor in a new company. Currently, investors have to be accredited — essentially proving they’re worth more than a million dollars — not including their home.

Entrepreneurs are applauding the passage of the so- called “crowdfunding bill.”

Naval Ravikant is the CEO of AngelList — an online business that pairs investors with start ups. He’s a strong supporter of the legislation.

Mr Ravikant, walk us through how this would work. Let’s say I have an idea for a new company, can I just pitch it online —  to find investors — is it really that easy?

Naval Ravikant: Not quite. To be clear, today at AngelList we only deal with accredited investors, but crowdfunding opens up the door for non-accredited investors. Non-accredited means they have less than a net worth of a million dollars. These are people today who can spend their money gambling, they can do it in commodities, penny stocks, derivatives so there already all kinds of risky investments they can make. With crowdfunding they’ll have the ability to participate in small amounts in start-up companies, which can be risky and can be dangerous, but often no more than other investments.

Tara Siler: There are some concerns about this legislation — and some come from consumer groups. They say this change could expose small investors to fraud. How do you respond to this concern?
Ravikant: Honestly, I think it’s a little overblown. Anytime you invest money there’s always losses, but in terms of actual fraud, if you look at the bill that passed through the Senate there’s huge liability and legal disclosure required for people who engage in outright fraud. There are already laws on the books against fraud and if anything this bill strengthens them. And, nobody gets any money unless everybody in the community passes certain thresholds. There’s this wisdom of crowd effects going on. Kickstarter has done a great job with donations and sort of pre-paying for products in the space, which is what inspired crowdfunding in the first place.

The U.K. platforms to date report zero instances of successful fraud and there’s all kinds of disclosure regulations, legal recourse, and of course community tools built into this bill. So, I think people could lose money the good old fashioned way, which is you make money on an investment that goes sour, but I think the fraud opportunities are actually fairly low.

Siler: One of the changes under this bill is that companies can now announce publicly, in a very big way that they’re interested in raising money.

Ravikant: Correct. There’s been a regulation on the books for a long time around general solicitation, which means that a company or a fund may not publicly declare that it’s raising money, even if it is only doing so from accredited and sophisticated investors. So, the bizarre outcome of this old rule is that you can actually meet somebody in a bar and offer to let them invest in your fund, but you cannot, for example, take out an ad in theEconomist or you can’t even tell a reporter for the Economist or for KQED that your fund or your company is currently accepting money.

Siler: Will this also help small Mom and Pop stores as opposed to the digital world?

Ravikant: I think that’s where the crowdfunding part will help. The general solicitation part will probably help the Silicon Valley types trying to reach accredited investors, but the crowdfunding part is really more designed to help, for example, a Phiz coffee or a Bluebottle coffee in San Francisco. They have incredibly passionate, loyal customers. They have trackable and traceable audits and revenue streams. They’re having a hard time getting loans from banks, but they could raise equity capital through passionate, loyal consumers and crowdfunding.

Siler: Thanks for being with us today. Naval Ravikant is the CEO of AngelList. The crowdfunding bill now goes back to the House to resolve changes made in the Senate. President Obama has already said he plans to sign it.

Guests

  • Naval Ravikant: CEO of AngelList

>About  STARTUP EXEMPTION: 

Startup Exemption is the name Sherwood Neiss, Jason Best and Zak Cassady-Dorion created to describe their CrowdFund Investing (CFI) framework.  The framework is an exemption under Regulation D Securities Offerings that would allow startups and small businesses to raise a limited amount of seed and growth capital from their social networks using SEC-registered websites.  Their framework was the basis for the three Crowdfunding bills considered by Congress and was endorsed by the President.  It passed the US House in November, 2011, 407-17 and the US Senate on March 22, 2012 as part of the JOBS Act 73-26. The path from idea to law in 579 days can be found at: http://www.startupexemption.com/.

Contact Information:

Sherwood Neiss                                       Jason Best

(202) 247-7182                                 (415) 999-2271

Available  7am to 7pm M-F (ET)           Available  7am to 7pm M-F (PT)

sherwood@startupexemption.com   Jason@startupexemption.com

Other Links:

 

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The New Crowdfunding Law: What Does it Mean?

March 24, 2012 · Leave a Comment

March 23, 2012
FOR IMMEDIATE RELEASE

  3 Entrepreneurs, 579 days, 1 Crowdfunding Law

Now, What Does it All Mean?

(Washington, DC) – The Jumpstart Our Business Startup Act (JOBS Act), H.R. 3606, passed the U.S. Senate on March 22, with overwhelming support (73-26). So what will the impact be, particularly as it relates to the CrowdFund Investing measure, for America’s entrepreneurs and small businesses?  According to the three entrepreneurs who developed the crowdfunding framework, which was the basis for the legislation, it means a new source of funding, more jobs and a greater chance of success for small businesses.

The U.S. House passed the Jobs Act on March 8 (390-23), and the U.S. Senate amended the legislation before its passage on March 22.  House Majority Leader Eric Cantor (R-VA) said he plans to schedule a vote on the amended package early next week. This means the legislation could be signed by President Barack Obama next week, if the House passes the Senate amended bill (which it is expected to do).   

More small businesses will get funded

“With the passage of this legislation, entrepreneurs will be able to post their businesses on SEC-registered CrowdFund Investing (CFI) websites and the community will step in to fund only those ideas they have fully evaluated and made an informed decision about,” says Jason Best co-author of the CrowdFund Investing Legislation that passed both chambers.   Entrepreneurs will use Facebook, Twitter and other social media tools to reach out to their customers and say, “If you like our business so much, why not become an investor?”

Investors (who must first take a short quiz to make sure they understand that investing in a business is a highly risky endeavor with no guarantees) will pick apart the entrepreneur, the idea, the business model and the investment opportunity in an open manner with other members of the community.  Until 100% of a funding target is met, no money will be transferred, but once it is, an entrepreneur will have not only cash, but also a loyal customer/investor base.

With the collapse of the markets in 2008, the traditional means of financing for startups and small businesses – credit cards, home equity lines, bank loans and venture capital – disappeared.  Interest rates increased, home equity lines disappeared, and banks stopped lending to Main Street.  Venture capital shifted to larger, more secure deals.  A funding void ensued ($0 to $250,000 in financing) that no one has yet filled.  According to the Small Business Administration (SBA), this is the most critical seed and early-stage growth capital necessary for success and the number one reason why startups fail in the first five years. 

More startups and successful businesses means more jobs

More jobs will be created once startups and entrepreneurs have access to capital. According to the Kauffman Foundation, the majority of new jobs in the U.S. over the past 30 years have come from small businesses that are less than five years old.  Sherwood Neiss who co-authored the crowdfunding framework with Best observed: “We are entrepreneurs who prior to the 2008 financial collapse were able to access capital to launch Inc500 businesses that created over 150 direct and countless more indirect jobs.”

According to Neiss, “cash is king” and following the 2008 collapse it became exceedingly scarce.  “We were left trying to figure out how to launch new businesses and create jobs without access to capital. So we merged the principles of seed financing and crowdfunding together to develop a framework.”

The framework will allow friends and family to invest up to $1 million into an entrepreneurial enterprise, but individual investments are capped below $10,000.  The capital will either go directly into hiring people or into the purchase of products or services. 

More successful enterprises, and a healthy entrepreneurial ecosystem

The crowdfunding platforms will lead to more community investing and more successful local businesses because people will have a vested interest in the success of these entrepreneurs.

“Five years from now we are going to look back on the impact CrowdFund Investing has had on the world,” remarks Zak Cassady-Dorion Co-Founder of Startup Exemption. “We are going to see more vibrant communities where the residents aren’t just consumers but are also owners helping to drive the success of their local entrepreneurs and communities.” 

And why is this important?  “Because a strong entrepreneurial ecosystem depends on access to capital.  Freeing up new sources of capital – as the JOBS Act will do through crowdfund investing – will strengthen our nation’s small business sector, and add to their job creating capacity. Being accountable to community investors will enhance success,” says Karen Kerrigan, president & CEO of the Small Business & Entrepreneurship Council (SBE Council).

As for investor protection, says Neiss, “Under the CrowdFund Investing model, we believe it is going to be easier to expose fraud with social networking and the real-time Web.  At the community level the people investing will be investing in people and businesses they know or have carefully evaluated.  With the transparency of the social Web, fraud can be exposed before it can take place.  We have seen this work on donation-based sites to great effect.”  

About  STARTUP EXEMPTION: 

Startup Exemption is the name Sherwood Neiss, Jason Best and Zak Cassady-Dorion created to describe their CrowdFund Investing (CFI) framework.  The framework is an exemption under Regulation D Securities Offerings that would allow startups and small businesses to raise a limited amount of seed and growth capital from their social networks using SEC-registered websites.  Their framework was the basis for the three Crowdfunding bills considered by Congress and was endorsed by the President.  It passed the US House in November, 2011, 407-17 and the US Senate on March 22, 2012 as part of the JOBS Act 73-26. The path from idea to law in 579 days can be found at: http://www.startupexemption.com/.

Contact Information:

Sherwood Neiss                                       Jason Best

(202) 247-7182                                 (415) 999-2271

Available  7am to 7pm M-F (ET)           Available  7am to 7pm M-F (PT)

sherwood@startupexemption.com   Jason@startupexemption.com

Other Links:

About The Small Business & Entrepreneurship CouncilSBE Council is a nonprofit, nonpartisan advocacy organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit: http://www.sbecouncil.org/.

Contact Information:  Karen Kerrigan, (703) 242-5840, kkerrigan@sbecouncil.org

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Crowdfunding Industry to Unite Behind Regulatory Organization to Protect Investors

March 23, 2012 · Leave a Comment

PRESS RELEASE

March 23, 2012, 2:29 p.m. EDT

Crowdfunding Industry to Unite Behind Regulatory Organization to Protect Investors

WASHINGTON, DC and NEW YORK, NY, Mar 23, 2012 (MARKETWIRE via COMTEX) — With the passage of the JOBS Act, the Crowdfunding Industry is uniting behind a Self Regulating Organization (SRO) to monitor and oversee this new marketplace and ensure investor protection. The Crowdfund Intermediary Regulatory Association will commit to providing investor protection and market integrity through effective and efficient regulation of those within the crowdfunding industry. CFIRA will create rules, oversight and a united voice for the CrowdFund Investing platform companies as the industry is formed. CFIRA announced today that the founding partners will be:

  • Startup Exemption, The CrowdFund Investing authors that wrote the framework for the Crowdfund legislation passed by Congress.
  • The SoHo Loft Capital Creation (TSLCC) Events, the definitive event platform for the private markets aimed at facilitating capital
  • formation and job creation.
  • Gate Technologies & GATE Impact, a platform and electronic marketplace and that provides regulatory compliant private market transactions.

CFIRA is a membership organization that includes members of the CrowdFund Investing and donation-based crowdfunding community as well as representatives of related industries including angel and venture capital firms. CFIRA will provide intermediaries with regulation, reporting, and compliance oversight and will provide investors with educational tools to help make more informed decisions about the opportunities and risks of CrowdFund Investing. CFIRA is committed to working with the SEC to create reasonable and appropriate regulations and oversight to reduce fraud and protect investors.

“Empowering Entrepreneurs to access limited amounts of capital to innovate and create jobs is an important part of this organization’s strategy,” said Jason Best, Co-Founder of Startup Exemption.

“With uniform rules developed by the Industry that include social media, intermediaries will provide a regulated environment for CrowdFund Investing to take place with transparency and investor protection,” added Sherwood Neiss.

“Both the legislation and the industry acknowledge the need for proper oversight to maintain efficient and effective marketplace. Particularly given the new nature of crowdfunding, delivering education that informs investors on the risks and opportunities of investments is the only way a viable industry can be created,” stated David Drake, Co-Founder of The SoHo Loft Capital Creation Events.

“Organizations like these are good for our economy, good for the industry, and an essential part of our approach toward a secure and transparent marketplace that works for all Americans,” concluded Vincent Molinari CEO of GATE Technologies.

Inspired by the JOBS Act, CFIRA is an industry-led effort that allows CrowdFund Investing intermediaries to register to oversee their operations in a way that is akin to other SROs that oversee the financial markets.

About Startup Exemption Startup Exemption is the name Sherwood Neiss, Jason Best and Zak Cassady-Dorion created to describe their CrowdFund Investing (CFI) framework. The framework is an exemption under Regulation D Securities Offerings that would allow startups and small businesses to raise a limited amount of seed and growth capital from their social networks using SEC-registered websites. Their framework was the basis for the three Crowdfunding bills considered by Congress and was endorsed by the President. It passed the US House in November, 2011, 407-17 and the US Senate on March 22, 2012 as part of the JOBS Act 73-26. The path from idea to law in 579 days can be found at: www.startupexemption.com .

About The SoHo Loft Capital Creation Events The SoHo Loft Capital Creation (TSLCC) Event Series is the only global event platform where accredited investors; accomplished angels; CIOs of investors; merchant and investment bankers; VCs; family offices; incubators; private equity firms; pre-IPO mutual funds; equity analysts; entrepreneurs; legislators and legal and tax professionals from across the world assemble in order to exchange ideas, discourse and opportunities that will help reshape the capital markets and stimulate economic growth. Our mission is to help develop the infrastructure of the rising private markets so that it may mature into a viable and functional institutional marketplace that facilitates capital formation, innovation, expansion and job creation. For additional information please visit us at http://thesoholoft.com and www.facebook.com/TheSohoLoftevents .

About Gate Technology GATE Technologies is an innovative financial technology company creating a new market infrastructure for bringing efficiency, transparency to the unstructured global alternative asset markets. The company offers fully automated, customizable solutions for qualified investors with value-added content and analytics, transparent execution, and dematerialized settlement, clearing, and depository functions. GATE Developing Markets will work together to create the first global common infrastructure for illiquid securities, with a goal of enabling all market participants. www.gatetechnologies.com

About GATE Impact GATE Global Impact LLC is the impact investing-focused subsidiary of GATE Technologies, LLC., GATE Impact provides market infrastructure and related services for the emerging impact investment industry — public and private investments with a sustainable social and/or environmental component that also generate a healthy rate of financial return. www.gateimpact.com

Vincent Molinari
Vmolinari@gatetechnologies.com
631-692-9350

Jason Best
jason@startupexemption.com
415.999.2271

Sherwood Neiss
sherwood@startupexemption.com
202.247.7182

SOURCE: GATE Technologies

mailto:Vmolinari@gatetechnologies.com
mailto:jason@startupexemption.com
mailto:sherwood@startupexemption.com

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US Senate Votes in FAVOR of Crowdfunding!

March 22, 2012 · 2 Comments

At 1:20pm Thursday, March 22, 2012 the US Senate voted in FAVOR of HR3606 the JOBS Act.  

The vote was 73-26. 

CrowdFund Investing (CFI) to be LEGALIZED in the USA!

Because The Senate version of Crowdfunding was attached as an amendment.  It needs to go back to the US House for one final vote!!

 

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Crowdfunding Industry Establishes Standards to Help Protect Entrepreneurs and Investors and Spur JOBS Act

March 21, 2012 · Leave a Comment

Crowdsourcing.org and Crowdfunding Industry Experts Launch Crowdfunding Accreditation for Platform Standards (CAPS) Program

LOS ANGELES, CA, Mar 21, 2012 (MARKETWIRE via COMTEX) — Today, the JOBS Act took one step closer to becoming law. On the heels of the JOBS Act passing the Senate cloture vote by a wide margin (with two amendments pending) — which will allow companies to offer securities to non-accredited investors via crowdfunding platforms — the launch of the Crowdfunding Accreditation for Platform Standards (CAPS) program is the first significant milestone adopted by the industry. The CAPS program establishes standards for crowdfunding operations and aims to protect investors from fraud. As the industry begins the process of creating a self-regulatory framework, CAPS — which will govern the accreditation of crowdfunding platforms — will be a key pillar within this framework.

More than 400 crowdfunding platforms were operating in January 2012. As industry leaders recognized that investors would need help and more information when funding ventures through these platforms, the CAPS program was created to ensure a secure and reliable experience. Now CAPS-accredited platforms will display the CAPS badge on their sites to demonstrate they have been accredited based on qualification criteria in four areas:

 

  • Operational transparency
  • Security of information and payments
  • Platform functionality
  • Operational procedures

 

“Now that crowdfunding legislation is gaining momentum in Washington, the future of the industry will be determined by its ability to create a consistent and safe environment,” said founder of Crowdsourcing.org Carl Esposti. “As the intermediary between investors and entrepreneurs, crowdfunding platforms owe fundraisers and investors a high degree of transparency and the ability to facilitate secure transactions to reduce the risk of fraud. If the industry can deliver in these areas, the potential is unlimited, and crowdfunding can effectively become the backbone of both SME financing and philanthropic donations.”

The CAPS Council, the governing body of CAPS with currently 11 crowdfunding experts, has taken the initiative to establish these accreditation criteria to ensure crowdfunding platforms adequately protect fundraisers and investors. Members of the CAPS Council include:

  • Carl Esposti, founder of The Industry Website Crowdsourcing.org
  • Sherwood Ness & Jason Best, founding members of the Start-up Exemption, and leading lobbyist and advocate for crowdfunding
  • Kevin Lawton, author of Crowdfunding Revolution

Following an initial private invitation-only launch, eight organizations — Crowdcube, Grow VC, Crowdfunder, GreenUnite, HelpersUnite, Symbid, Give A Little and Fundrazr — have been accredited by the CAPS program and another 20 organizations are currently undergoing the process. More than 200 crowdfunding platforms are expected to apply for accreditation in 2012.

“Crowdfunding is the future of seed and growth financing for startups and entrepreneurs,” said Sherwood Ness, founding member of the Startup Exemption. “It uses the web, social media and advances in technology to allow an entrepreneur to raise a limited amount of capital from his friends, family & community under a framework that provides for investor protection. Establishing high platform standards is the clear next step to not only protecting investors but also to ensure continued success and growth of the industry.”

Journalists interested in speaking to a CAPS Council member or learning more about the program can contact Jennifer Moebius at jennifer@moebiusink.com.

About  STARTUP EXEMPTION:

Startup Exemption is the name Sherwood Neiss, Jason Best and Zak Cassady-Dorion created to describe their CrowdFund Investing (CFI) framework.  The framework is an exemption under Regulation D Securities Offerings that would allow startups and small businesses to raise a limited amount of seed and growth capital from their social networks using SEC-registered websites.  Their framework was the basis for the three Crowdfunding bills considered by Congress and was endorsed by the President.  It passed the US House in November, 2011, 407-17 and the US Senate on March 22, 2012 as part of the JOBS Act 73-26. The path from idea to law in 579 days can be found at: www.startupexemption.com.

Contact Information:

Sherwood Neiss                                          Jason Best

(202) 247-7182                                          (415) 999-2271

Available  7am to 7pm M-F (ET)                 Available  7am to 7pm M-F (PT)

sherwood@startupexemption.com             Jason@startupexemption.com

Other Links:

About Crowdsourcing.org

Founded in 2010, the industry website Crowdsourcing.org is a neutral organization dedicated solely to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space, Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding practice expertise and unbiased thought leadership. Crowdsourcing.org is an initiative by massolution, a unique research and advisory firm specializing in crowdsourcing and crowdfunding solutions for private, public, and social enterprises. More information at www.crowdsourcing.org .

Media Contact
Jennifer Moebius
Email Contact
Phone: +1-617-922-8004

www.twitter.com/Crowdsourcing_

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Crowdfunding isn’t Sex, Drugs and Rock n Roll

March 19, 2012 · 1 Comment

Leave it to the Crowdfunding opposition to turn ‘entrepreneurship, innovation and jobs’ into ‘fear, fraud and apocalypse.’  Now that the JOBS Act is on the verge of passing, the media is running wild with stories that re-regulating the markets (yes Crowdfund Investing (aka equity-based crowdfunding) is re-regulating not deregulating) will lead to mass fraud, hysteria, a loss in investor confidence and a collapse of the general markets.  Most importantly there’s a general misperception among the opponents to Crowdfund Investing that access to capital will NOT lead to innovation and jobs.  How wrong they are.

Over a year ago, 3 successful entrepreneurs sat down with a goal to craft a framework to allow a limited amount of seed and growth capital to flow into the hands of entrepreneurs using the tenants of crowdfunding.  These entrepreneurs had the experience of taking ideas, raising money, growing businesses and hiring over 150 employees.  That’s walking the walk.  These MBA grads understand what it means to be an entrepreneur, what information investors need to make informed decisions, what the laws regarding raising capital formation are and the benefits of a symbiotic relationship to a functioning, transparent marketplace.

The missing component post the 2008 financial meltdown was the disappearance of capital. Along with the collapse of the financial markets went home equity lines used to launch ideas, credit cards with large credit lines and low interest rates used to finance growth, and private money used to expand businesses.  Business 101 – Cash is KING.  Without access to capital, you cannot grow or hire!

So rather than come up with “a mechanism to undermine market transparency, roll back important investor protections, and, drive up the cost of capital for small companies” as Barbara Roper Director of Investor Protection, Consumer Federation of America said, these Entrepreneurs crafted a framework that if implemented along its original extent would have addressed all the concerns, misperceptions and drama floating around today.

The framework was carefully crafted.  It carved out a rule under which fraud-free entrepreneurs and small businesses with revenues of less than $5M that weren’t foreign corps, public or investment companies could raise up to $1M either selling Common Stock or revenue based financing on SEC-registered websites.  Where, investors would have to agree using current standard verification technology that they understand there is no guarantee of return, that they could lose their entire investment and that their liquidity/return is limited to any dividends, sale, public offering or a merger of the company.  And once they agreed to that, would be limited as to how much they could risk to the lower of $10,000 or 10% of their AGI. Where standardized forms (generic term sheets & subscription agreements) based on industry best practices would be used to maintain transparency and reduce time and expense for all parties.   Post funding standardized and automated reporting for use of proceeds would be required on a quarterly basis by entrepreneurs.  Platforms would provide the SEC monthly offering reports that include information on: deals funded, entrepreneurs’ names, social security numbers, addresses, date of births, amount of capital raised, list of investors and individual dollar amount contributed.  And most importantly social media would control the process.  Entrepreneurs would only be allowed to solicit people in their social network using Facebook, Twitter, Linkedin, etc.  Platforms would use social media tools to create a deal room for each idea where interested investors can publicly pick apart the entrepreneur, the idea, the business model and the investment opportunity.  And most importantly, NO MONEY would be exchanged until the ENTIRE crowd decided to fund the entrepreneur and the entrepreneur’s funding target was 100% met.  Not so easy, right?

If implemented as designed it would allay all concerns including entrepreneurs who need capital, investors who need proper disclosures to make informed decisions, regulators who want to know what is happening in the capital markets and intermediaries who will provide the social media tools to allow for solicitation and vetting before the crowd collectively and in an open dialog, decides which of their community entrepreneurs they wish to fund and with how much money as well as the conduit for the transaction to happen.

Crowdfund Investing will be a great financing tool for our nation’s entrepreneurs.  The opponents, well they are academic and regulators.  We are entrepreneurs , investors and most importantly JOB CREATORS. We created 150 jobs before when capital was available.  But you know what?  We can’t do it today, without Capital!  The time is now to Legalize Crowdfunding!!

Sherwood Neiss, Jason Best & Zak Cassasdy-Dorion are the developers of the framework for Crowdfund Investing which is the basis for all the CF Bills before Congress.  For more information about us go to www.startupexemption.com/about-us

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Senate Votes on Crowdfunding Tomorrow! Call your Senators TODAY and say “Vote for JOBS!”

March 19, 2012 · Leave a Comment

 

 

An update on the Process to Legalize Crowdfunding from the guys who brought Crowdfund Investing to Washington, DC
Is this email not displaying correctly?
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Dear Crowdfund Investing Follower,

On Tuesday, March 20th the Senate will take up the House-approved JOBS Act.  It includes the majority of the Crowdfunding framework that we originally brought to DC, was used by Representative McHenry (R-NC) as the basis for HR2930, and was endorsed by the President.  Several components of the framework were also included in the Senate version and many of our ideas are the ones used in the bipartisan Merkley/Bennet/Brown/Landrieu compromise that was offered as an amendment to the Crowdfunding portion of the House-approved Bill.

Everyone is in agreement.  Solving the funding problem faced by our nation’s job creators is a smart thing.  Crowdfund Investing (CFI) is a great idea but it has to take place in a marketplace that is transparent and accountable.  However, without a Senate passed bill, Crowdfund Investing won’t exist.

When the Senate takes up the bill on Tuesday, it is important that if you support Crowdfunding in any shape or formyou do the following:

  1. Call your Senators and tell them “I support the JOBS Act and Senator _______ should vote in favor of it.”
  2. Rally your supporter, followers, friends and family to do the same thing.  Tweet, Facebook post, Linkedin update, etc about this!  The opponents to Crowdfunding are outnumbering proponents in calls to the Senate.  If Crowdfunding fails here, it dies and history proves that its chances of being resurrected again are near zero.  Here’s a tweet you can use: 2 Directions #Crowdfunding can go in Tuesday’s Senate Vote & What You Need to Do http://wp.me/p1JYwD-48 PLEASE RETWEET! #JOBSAct.

Kevin Lawton, author of The Crowdfunding Revolution said it best in the Huffington Post, “We are on the precipice of a historical moment for entrepreneurs, and for America to set the precedent for innovation again. Crowdfunding is not only a win for the 99%. Allowing it is a veritable 1st Amendment for American business owners. We need your support, now!”

It is CRITICAL THAT THE SENATE VOTE IN FAVOR OF THE PRESIDENT, JOBS AND CROWDFUNDING!   If the Senate votes against the JOBS Act, Crowdfunding will probably never see the light of day!  It is important that if you support Crowdfunding you have your voice heard Tuesday!

We are back in Washington, DC and working tirelessly to see this through!

All our best,
Woodie, Jason & Zak

Contact us:  Got a comment?  Need to speak to us?  Here’s how …
Sherwood Neiss, sherwood@startupexemption.com, 202-247-7182
Jason Best, jason@startupexemption.com
Zak Cassady-Dorion, zak@startupexemption.com

 

 


 

 

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2 Directions Crowdfunding will go in Tuesday’s Senate Vote & What You Need to Do

March 18, 2012 · Leave a Comment

On Tuesday March 20th the Senate will take up the House-approved JOBS Act.  The JOBS Act includes the majority of the Crowdfunding framework that we originally brought to DC and Representative McHenry used as the basis for HR2930.  Several components of the framework were also included in the Senate version and many of our compromise ideas are the ones used in the bipartisan Merkley/Bennet/Brown/Landrieu compromise that was offered as an amendment to the Crowdfunding portion of the House-approved JOBS Act.

When the Senate takes up the bill on Tuesday it is important that if you support Crowdfunding in any shape or form you do the following:

  1. Call your Senators and tell them “I support the JOBS Act and Senator _______ should vote in favor of it.”
  2. Rally your supporter, followers, friends and family to do the same thing.  Tweet, Facebook post, Linkedin update, etc about this!  The opponents to Crowdfunding are outnumbering proponents in calls to the Senate.  If Crowdfunding fails here, it dies and history proves that its chances of being resurrected again are near zero.  (Use the tweet button at the bottom of this post at minimum to spread the word).
  3. If you are a Crowdfund Investing intermediary (or wish to be), it is critical that you sign up to be part of the Crowdfunding Self Regulatory Organization (CSRO).  Either the Crowdfunding industry oversees itself or FINRA/NASAA will and as you can see by their choice wording in the media, they have no interest in seeing Crowdfunding flourish.  Since we originally brought the idea for Crowdfund Investing to Washington, DC in January, 2011 with our framework, we have stayed on policy during this process.  Now, we’ve been asked to head up the formation of the Self-Regulating Organization for Crowdfund Investing.  We have formed an initial board of industry experts and core principals and will be meeting to create our charter, regulatory structure and industry oversight process.  This new SRO will create strong, enforceable standards and assist Crowdfunding platforms in educating and protecting investors who choose to invest small portions of their savings in Crowdfunding.  The Crowdfunding industry needs its own organization for oversight and regulation.  As a new industry, we understand how different CFI is from other financial products and are best positioned to enable the industry to grow, while creating strong investor protections.

It is CRITICAL THAT THE SENATE VOTE IN FAVOR OF THE PRESIDENT, JOBS AND CROWDFUNDING!   If the Senate votes against the JOBS Act, Crowdfunding will probably never see the light of day!  It is important that if you support Crowdfunding you have your voice heard by Tuesday!

 

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SRO Registration

March 18, 2012 · Leave a Comment

I/My firm wishes to be part of the Crowdfunding Industry Self Regulating Organization (CSRO).  By submitting my information below I acknowledge my/our interest in backing such an organization.

 

SRO ORGANIZATION MEETING

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Apr 17,2012 -     Time: 10:00 am - 4:00 pm

Please include me in the Crowdfunding SRO Organizational meeting of industry experts where we will be meeting to create the charter, regulatory structure and industry oversight process.  We believe this new SRO will be best suited to create strong, enforceable standards and assist crowdfunding platforms in educating and protecting investors who choose to invest small portions of their savings in crowdfunding.  You do not need to attend the organizational meeting to sign up.


Location


TBD

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Registration is closed for this event.
For more information or questions, please email:

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Categories: Woodie Neiss