Entries tagged as ‘HR 2930’
March 27, 2012 · Leave a Comment
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!!
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
March 19, 2012 · Leave a Comment
March 11, 2012 · Leave a Comment
After returning from several days of lobbying for Crowdfund Investing in Washington, DC, we have this small window of opportunity to make Crowdfund Investing legal over the next several weeks. Here’s what you need to know and what you need to do to help Legalize Crowdfunding today.
The House passed our Crowdfund Investing Bill (HR 2930) back in November. The Senate has been sitting idly even though a few Senators have tried to push Crowdfunding forward. However both Senate Majority Leader Reid (D-NV) and Banking Committee Chairman Johnson (D-SD) refused to act until now.
On March 8th, the House took 6 of the Capital Formation bills that passed with almost unanimous bipartisan support (including our Crowdfunding bill), packaged them together into one (called the JOBS Act) and passed it again with overwhelming bipartisan support. The President came out and endorsed this Republican-led initiative and now they are calling the Senate’s bluff. Either sit and do nothing and come election-time Americans will know that the Senate is the cause of the gridlock in DC or bring the bill (or their own version of the bill) to the floor to vote and act on our country’s behalf.
Here are 4 things you can do to help Legalize Crowdfunding today:
- Now more than ever we need people calling both Senate Majority leader Harry Reid (D-NV) at (202) 224-3542 and Senate Banking Committee Chairman Tim Johnson (D-SD) at (202) 224-5842 and let them know that America’s Entrepreneurs need Crowdfunding.
- Click the links, download, complete these form letters with your information and send them to both Reid and Johnson.
- Tweet, Facebook Status Update, Google+ & Linkedin Post about this page to your followers to spread the word.
- If you are an entrepreneur or if an Investor who would use or back some on a Crowdfund Investing website, then register on LegalizeCrowdfunding.org. (You can get there on your cell phone by texting “HR2930″ TO 83432).
Categories: Congressman Patrick McHenry · crowdfund investing · crowdfunding · Sherwood Neiss · Woodie Neiss
Tagged: Congressman McHenry, crowdfund investing, crowdfunding, HR 2930, President Obama, Sherwood Neiss
March 8, 2012 · Leave a Comment
This was a busy week for Crowdfunding in Washington, DC. Sherwood Neiss, Chief Advocate for the Startup Exemption spent the last weekend working with and prepping Tim Rowe Founder and CEO of the Cambridge Innovation Center for Tuesday’s Senate Banking Committee Hearing on Capital Formation. Mr. Rowe was the expert panelist speaking about the benefits of Crowdfund Investing (CFI) not only for the 450 startups in his innovation center (including Crowdfund Investing platform Wefunder) but for the thousands of entrepreneurs that don’t have access to Cambridge, Silicon Valley, or Wall St.
Unlike prior hearings that were hostile towards Crowdfund Investing, this hearing had a growing list of bipartisan supporters including once vocal opponent, Senator Charles Schumer. In his remarks he stated, “Given the level of bi-partisan support… passage in the Senate appears not to be a matter of if, but of when. I expect a comprehensive Senate proposal to be announced in the coming days.” With two Senate Bills on Crowdfunding, a compromise solution advanced, and Republicans and Democrats lining up, perhaps the guys at LegalizeCrowdfunding.org will see the light of day soon.
The Senate is under pressure to act or be portrayed as out of touch with Americans who want action in Washington. The House crafted, marked up and voted on six capital formation bills all meant to spur innovation, entrepreneurship and employment. All received overwhelming bi-partisan support, including the Crowdfunding bill H.R. 2930 (the basis of which comes from the Startup Exemption framework) that was approved 407-17. All have been sent over to the Senate where Senator Reid who controls the calendar has refused to act until now.
In a direct affront to the gridlock that exists in Washington, DC, the House decided to show America where in fact the bottleneck in Washington resides – with the Senate. Today the JOBS Act, a compilation of all the already passed, aforementioned Capital formation bills (including Crowdfund Investing) were grouped together in one bill and passed again by the House. This tremendously bi-partisan bill addresses the challenges that are preventing our nation’s job creators from getting capital that they need to innovate and hire Americans. By grouping them together, one bill will be sent to the Senate to take up rather than several. It either keeps the Senate from debating and stalemating on each one or forces them to come up with their own JOBS Act (which is hard since they haven’t taken up and passed any of the bills from the House to date). To further point the finger, the President came out and publicly endorsed the Republican championed legislation.
Backed up against the wall, Senator Reid announced that the Senate will move forward on these capital formation bills. How he will do it is up in the air. The choices are in Committee or on the floor of the Senate. If it is done in Committee then both sides can work out their issues and come to a compromise. If Reid decides to take it directly to the floor then he opens it up to Amendments that historically prove to derail the process and reinforce the gridlock.
Now is the time for entrepreneurs who need access to capital to call both Senate Majority leader Harry Reid (D-NV) at (202) 224-3542 and Senate Banking Committee Chairman Tim Johnson (D-SD) at (202) 224-5842 and let them know that America’s Entrepreneurs need Crowdfunding.
Categories: Congressman Patrick McHenry · crowdfund investing · crowdfunding · LegalizeCrowdfunding.org · Sherwood Neiss
Tagged: crowdfund investing, crowdfunding, HR 2930, President Obama, Sherwood Neiss
March 1, 2012 · Leave a Comment
News from the Small Business & Entrepreneurship Council
FOR IMMEDIATE RELEASE CONTACT: Karen Kerrigan
February 29, 2011 (703)-242-5840, email@example.com
Small Business Groups Urge U.S. Senate Leaders to Quickly Move Forward on Crowdfunding Legislation
Washington, D.C. – Today, a coalition of the nation’s most influential organizations representing small business owners and entrepreneurs is urging U.S. Senate leaders to work together to bring crowdfund investing legislation to the Senate floor for a vote. In a letter addressed to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), the groups note that crowdfund investing legislation passed the U.S. House 407-17, and President Barack Obama has expressed his support for the legislation through a Statement of Administration Policy as well as in his Startup Legislative agenda recently delivered to Capitol Hill.
Crowdfund investing platforms will allow entrepreneurs who lack access to funding networks the opportunity to bring their business ideas directly to investors through regulated, online platforms. As the groups note in the letter, “Americans will have the opportunity to invest in small businesses in their local communities, or support entrepreneurs in rural areas where business formation is critical to sustaining those communities.” The letter points out that capital access remains a serious challenge for startups and growth-oriented businesses, and without “adequate sources of capital, the economy will continue to underperform, and the recovery will remain less than robust.” Funding streams “remain cautious, locked or tentative,” write the groups.
Two crowdfund investing bills have been introduced in the U.S. Senate. Majority Leader Reid announced yesterday that the U.S. Senate will address the package of capital formation bills that overwhelmingly passed the U.S. House. With respect to crowdfund investing legislation, state regulators have engaged in a campaign of “fear and fraud,” which has deprived Senators from learning the facts about how crowdfunding currently works through gift-based platforms, and how technology — and a new regulatory framework – will play a central role in rooting out potentially bad actors on crowdfund investing platforms.
As the groups note in their letter:
“On these platforms, investors will dynamically engage with other investors to vet business ideas and fund those businesses that have significant promise. Crowdfund investing platforms will be open and transparent, and operate under a new regulatory framework. The platforms will protect investors by utilizing proven technologies and tap into ‘the sunshine’ of social media. This is what has made gift-based crowdfunding so successful, and why crowdfund investing has been a major success in other parts of the world. Entrepreneurs looking to raise capital will be required to provide significant financial information to potential investors, as well as withstand the scrutiny of the crowd in regards to the feasibility of their business plans and models.
The small business groups are optimistic about the legislation’s fate. In the letter, they communicate a belief that “a consensus is achievable for advancing legislation that enables effective crowdfund investing platforms for small businesses while protecting investors.” Majority Leader Reid said the Senate Banking Committee will hold an additional hearing on the package of capital access bills next week, which the groups hope will include expert witnesses on crowdfunding so that Senators can be properly informed about existing platforms, and how the new space will protect investors.
The groups underscore the importance of the need to work together to enact solutions that will help small business owners invest, grow and create jobs “Capital is the lifeblood of our economy, and without it small business owners and entrepreneurs simply cannot generate the new jobs, breakthrough innovations and economic impact that are necessary for bringing our nation back to sustained growth,” the groups conclude in the letter.
The letter was signed by Harry Alford, President & CEO, National Black Chamber of Commerce; Kristie Arslan, President & CEO, National Association for the Self-Employed; Roger Campos, President & CEO, Minority Business Roundtable; Allen Gutierrez, National Executive Director, The Latino Coalition; Barbara Kasoff, President & CEO, Women Impacting Public Policy (WIPP); Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council; and Todd McCracken, President, National Small Business Association.
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February 25, 2012 · 1 Comment
The SoHo Loft Capital Creation Event Series Announces the Agenda for the Capital Creation and Crowdfunding Conference
in Los Angeles
BriefingWire.com, 2/24/2012 - Roswell, GA, Feb. 24, 2012 — Today the SoHo Loft announced the agenda for its upcoming Capital Creation and Crowdfunding Conference, the definitive forum for learning about the rapidly evolving marketplace for private company stock. The two-day event will be held in Los Angeles, CA on Tuesday, March 13th and Wednesday, March 14th.
In this remarkable moment in history, the U.S. regulatory environment, its capital markets and the innovation that drives those markets are simultaneously on the threshold of dramatic change. We are currently witnessing the embryonic period of a cutting-edge stock market just as we usher in a new era of mass media. At the same time, new legislation aimed at facilitating capital formation is being introduced to support this modern infrastructure. There has never been a more opportunistic time to capitalize on change.
TSL’s Capital Creation and Crowdfunding Conference provides attendees with key insight into the direction of the U.S. capital markets during this period of regulatory transformation and the rapid progression of the developing ecosystem. Attendees will get a fresh look at how capital formation is changing as well as learn where new growth opportunities exist, how social media is transforming Wall Street and most importantly, how to capitalize in this changing paradigm.
Attendees will also get to know the players who are shaping the Private Company Marketplace (PCM) including the private shares desks and exchange platforms, crowdfunding experts, secondary private share buyers and angels, private stock analysts, legislators and seasoned entrepreneurs. There will also be ample networking sessions to exchange ideas, discourse and opportunities.
DAY ONE: CROWDFUNDING – TUESDAY, MARCH 13TH
· 1pm – Registration, pre-networking, Demos
· 130pm – Opening Remarks and Introduction
· Employing Crowdfunding to Enhance Capital Formation and Create Jobs
· Rep. Patrick McHenry to discuss his bill, HR 2930 also known as the “Crowdfunding bill”
· “How you can make a difference and be heard” by Jason Best, Co-Founder and partner of Startup Exemption
· 3 to 330pm – Coffee Break: Snacks and Networking Under the Buttonwood Tree
· The Capital Markets of Tomorrow – Meet The Pioneers of Crowdfunding
· 330 to 415pm Panel: “Legalize it” – The transforming regulatory landscape to introduce a new asset class
· Panelists include:
1. Jason Best, Co-Founder of Startup Exemption
2. Jouko Ahvenainen, Co-founder of Grow VC
3. Richard Salute, Capital Markets and SEC Practice Director with J.H. Cohn
4. Mitchell Littman, Esq., founding partner of Littman Krooks LLP
· 415pm to 445pm Panel: The relationship between Angels and Crowdfunding
· Panelists include:
1. Julia Dilts, Co-Founder and CEO of Maverick Angels
2. Charles Sidman, Managing Partner of ECS Capital Partners and Angels
3. Wil Schroter, Serial Entrepreneur & CEO of Virtucon Ventures
4. Candace Klein, Founder and CEO of Bad Girl Ventures and SoMoLend
5. Connie Koch, President of the Southern California Region of Keiretsu Forum
· 445pm to 515pm Panel: Establishing the Infrastructure to enhance Crowdfunding:
· Panelists include:
1. Gene Massey, CEO of MediaShares
2. William Davis, President of Gate Impact
3. Alon Hillel-Tuch, Co-Founder of RocketHub
4. Steven A. Cinelli, Founder, CEO, PRIMARQ Inc.
· 515 to 545pm – Coffee Break: Snacks and Networking Under the Buttonwood Tree
· 545pm to 7pm – Presentations:
· 545pm: Case Study: One start-up’s experience utilizing Crowdfunding
· 605pm: “Models and approach to building the new sustainable finance sector” by Jouko Ahvenainen, Co-founder of Grow VC
· 625pm: “Transforming an Idea into a Business” by Julia Dilts, Co-founder and CEO of Maverick Angels
· 645pm – Closing Remarks, Meet our Sponsors
· 7pm – Cocktail Party, Extensive Networking
To register for tickets, please visit http://tslccla.eventbrite.com/. Only ticket holders will be permitted into the event. Press Passes will be provided to qualified members of the media at no charge. To receive Press Passes, please contact firstname.lastname@example.org. To view detailed bios of our distinguished speakers, please visit http://www.thesoholoft.com/our-network/speakers-2/
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; microfinancing groups; CIOs of investors; select merchant and investment bankers; VCs; family offices; incubators; private equity firms; pre-IPO mutual funds; secondary stock buyers, sellers and equity analysts 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 bring awareness and drive capital to the private company marketplace (PCM) as well as to help develop its infrastructure so that it can 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.
Categories: crowdfund investing · crowdfunding · Jason Best · Sherwood Neiss
Tagged: Congressman McHenry, crowd fund investing, crowdfund investing, crowdfunding, entrepreneurs, HR 2930, President Obama, SEC regulations, Sherwood Neiss
February 23, 2012 · 1 Comment
National Council of Entrepreneurial Tech Transfer Presents
Crowdfunding Webinar Mini-Series
Register for this free series here:
(or go to: https://www2.gotomeeting.com/register/415957282)
A rare glimpse of Crowdfund Investing. This free webinar will focus on different aspects on what Crowdfunding is, to what it looks like today, how it differs from Crowdfund Investing, what framework for Crowdfund Investing is to the legislative process in Washington DC, the hurdles to becoming law and dealing with everyone from leading Representatives and Senators all the way up to the White House.
ABOUT THE PRESENTERS:
Jason Best is a Co-Founder of Startup Exemption and brings over 10 years of executive management experience at 2 SaaS healthcare businesses (one of which he co-founded) in the bay area. His work there included starting a business from the ground-up during the dot com crash, building broad coalitions of US medical societies in support of Internet-based physician-patient communication and changing FDA regulations to enable physicians to receive electronic medication and device warnings instead of paper. This change dramatically increases patient safety while reducing time and costs for physicians and the pharmaceutical industry.
He is a successful entrepreneur and consultant to technology companies on business development and strategy issues to enable companies to grow quickly and effectively. In both 2010 and 2011, his work in strategy development, building scaleable processes, partnership development and branding/marketing, led to one of his clients, Kinnser Software, being named by Inc. Magazine as one of the 500 fastest growing private companies in the USA.
In Dec 2010, he also Co-Founded A Single Production Company, a documentary film company based in Bangkok Thailand. He has served as the Executive Producer for its first feature “The Cheer Ambassadors”. The film will premier at the Bangkok World Film Festival in January 2012. He is also working on a program with local entrepreneurs and educators to create a more entrepreneurial Web development industry in Thailand.
Jason earned his MBA from the Thunderbird School of Global Management, the world’s top international MBA program as well as a BA from William Jewell College, ranked by Forbes and US News and World Report as one of America’s best national liberal arts colleges. He has lived and worked in Europe, South America and Asia. He grew up in Louisiana and is now based in San Francisco, California to be near snow skiing, the ocean and wine country.
Chances are this entrepreneur has already helped you, your child, someone very close or even your pet. As a 3-time INC500 winner whose company won E&Y’s Entrepreneur of the Year, Sherwood understands the keys to entrepreneurial success from concept to company to sale.
Sherwood Neiss started his post-MBA career on Wall Street and moved to Silicon Valley where by his 29th birthday reached the personal and financial goals he set for his 30th year. Wondering what to do next and also left struggling with a debilitating family dilemma, he used his entrepreneurial drive to help turn his family adversity into a multi-million dollar company that today is helping millions of sick children, animals and adults get better by being more compliant with their medicines.
Sherwood Neiss co-founded FLAVORx (www.flavorx.com) the company makes 42 yummy flavors that take the yuck out of medicine. His structured approach helped not only build a business model that threw off millions of dollars in cash but also helped grow the business from one pharmacy to over 80% of the pharmacies in the United States. He raised millions of dollars in capital and saw the culmination of his endeavors with the sale of the company in 2007.
Sherwood is an avid public speaker. He speaks at universities and seminars around the world about what it takes to be an entrepreneur, how to fund your idea and build a winning company. He testified at three Congressional hearings; one on the impediments to capital formation under Sarbanes-Oxley and two regarding access to capital for entrepreneurs and Crowdfund Investing. His SOX testimony was one of the reasons the Small Business Exemption to section 404(b) audit requirements was passed in July 2010.
Most recently Sherwood won the November 2010 & May 2011 Startup Weekend Challenges in Miami to use smartphones for instant polling & for an equity based crowdfunding platform. Currently he advocating for the SEC to update the securities laws to make it legal for groups of people to pool small dollar amounts of money together to invest in startups aka “Crowdfund Investing.”
When not working, Sherwood is an avid traveler. He lived in Japan for a year and post-sale of FLAVORx took his second backpacking trip around the world. In addition to speaking at universities and businesses around the country he invests in real estate in the U.S. and Brazil, is part of a Private Equity group in Los Angeles, is working on a clean tech project in Puerto Rico and is involved with several other start-up ventures.
WEBINAR DURATION: Each session is a 90-minute webinar with 60 minutes of presentation and 30 minutes of Q&A.
COST: Free, but registration required by clicking on register the Register button above.
HOW TO PARTICIPATE?: This webinar is online. You need a computer with web access for the visual/audio. You may also dial-in using the audio-only telephone number. The call in details and instructions on how to join the webinar will be sent to you via email after you register. Once registered to the webinar you will receive a reminder email 24 hours before the start of the webinar with instructions on how to join.
QUESTIONS TO SPEAKERS: Q&A is conducted by a chat box to the speakers.
WHO SHOULD PARTICIPATE IN THE WEBINAR?: National and international media, federal and state government officials, venture capitalists, angel investors, Global 1000 companies, industry representatives, university officials, entrepreneurs and individual investors.
SLIDES AND VIDEO: The slide presentations and video recording will be available on this page. If you are unable to join the live webinar, you may view the recorded video that will be posted within 24 hours after the scheduled webinar ends.
If you have questions about this webinar, please email NCET2’s Research Commercialization and SBIR Center at email@example.com
February 21, 2012 · Leave a Comment
Our own real-world Stephen Colbert skit is playing out before our eyes. Security Regulators are up in arms about the prospect that the average American can decide if he or she is smart enough to invest $10, $100, $1,000 or $10,000 into an entrepreneur they know, via would be SEC-registered websites, that would allow entrepreneurs (who had cleared background and security checks) to raise money from their friends and family. Hence they are spending millions of dollars on lobbyists and staffing Senate hearings with opponents to derail Republican–led legislation that the House of Representatives passed with 96% approval. (Yes this is the same House that rarely passes things with such bi-partisan approval). This was also endorsed by a Statement of Administrative Policy by our Democrat President –all of which is meant to help keep America competitive, spur innovation, encourage entrepreneurship and create millions of jobs.
There are two bills before the Senate. Senator Reid must act to bring a Crowdfunding Bill much like the House version to the floor to vote on. Entrepreneurs, The US House and The President get it. Jobs won’t come if we don’t provide the capital. Let’s not look to past to get us out of this problem. Let’s look to the future and the success of Crowdfunding globally. If 96% of the House thought it was worthwhile, shouldn’t we expect the same from the Senate? Are we really going to let Special Interests that care more about their own power than our future economic prosperity kill crowdfunding legislation in the Senate?
Even before the equity-based crowdfunding site Profounder had a chance to show to the U.S. (ps -this is already legal and flourishing in the UK) the power of harnessing a few dollars from the crowd to spur innovation, encourage entrepreneurship and create jobs, they have shut their doors. In a statement to their followers they said, “the current regulatory environment prevents us from pursuing the innovations we feel would be most valuable to our customers, and we’ve made the decision to shut down the company.”
An inside-Beltway battle is being fought between the people trying to propel our country forward, America’s job creators, and those holding us back, Regulatory agencies including groups like the North American Securities Administrators Association ( www.nasaa.org ).. They are more concerned with clinging to outdated laws written 78 years ago than the economic needs of our country. Current regulations, were written before most homes had radios, much less the Internet. This was during a time when your “social network” was a stack of business cards that you could write letters to send via the US Post Office. Now, this deeply entrenched bureaucracy prevents entrepreneurs from using the Internet and social media to go to their friends and family for investments.
The U.K. has just updated their security laws to allow their citizens to finance their nation’s job creators much in line with what ProFounder was trying to do. What the UK realizes, is with the advances in technology and the Internet, there is power to a group of interconnected people vetting an entrepreneur in an open and transparent platform where they can decide if she or he is worthy of funding. As of last week, it was going so well that the UK Government began to offer tax credits to their citizens to encourage investment.
The financial markets in the US for entrepreneurs and small businesses are STILL FROZEN. With all the talk about it, the reality for most small businesses is they have no access to working capital. Access to capital is the number on concern according to a recent study by the Small Business & Entrepreneurship Council. Allowing Main Street to step in and fill the void left by Wall Street, the banks and Venture Capital can only help propel our country forward. We need to stand together. We need to legalize Crowdfunding. If you are an entrepreneur register at LegalizeCrowdfunding.org now!
Sherwood Neiss and Jason Best are Co-Founders for the Startup Exemption, which brought the idea for “Crowdfund Investing” to Washington a year ago. They have recently launched LegalizeCrowdfunding.org to quantify the impact the legalizing crowdfunding can have on our nation.