Comments on: Five steps the SEC can take to make crowdfunding work http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: GMavros http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45209 Thu, 31 May 2012 16:15:16 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45209 @FundingpadCLO; @NowStreet; etc;

I sincerely appreciate your honesty & legitimate arguments.
Yes, Crowdfunding would be a great alternative to business as usual, but from past experience anything that would compete against the Banksters & their likes would be immediately infiltrated and end up under their control. Our congress, our Supreme Court & even the Presidency are already under their control. We have to first address these root cause for our present predicament, otherwise no matter how good & great new concepts might be they will never succeed.

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By: NowStreet http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45191 Thu, 31 May 2012 01:47:30 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45191 Nice article, Sara. And @GMavros, I don’t think many would disagree that Wall Street is an unfair system. But it is equity-based Crowdfunding that will help democratize the flow of capital, bring equality to the capital markets and return them to the lifeblood of our economy: America’s small businesses. Why should Joe Average Investor be legally limited to investing his OWN money in public companies? Why should larger caps possess an unfair advantage raising capital in the U.S.? Larger caps that, by the way instead of creating US jobs, simply deploy that capital overseas in exchange for tax breaks and cheaper labor. Crowdfunding is a giant leap forward. Feel free to check out www.nowstreetjournal.com for additional information.

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By: MauriceLopes http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45177 Wed, 30 May 2012 20:22:56 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45177 I think it’s premature to say that equity crowdfunding done correctly will have any negative impact on future rounds of financing. I hope that equity-crowdfunding in the U.S. will be as popular and as successful as it has been in the UK over the past 6 months.

On EarlyShares (our crowdfunding platform), crowdfunding investors are pooled together into an new single entity and that entity invest as a single member into the crowdfunded company, one vote, one approval for future rounds, one shareholder. We have found that VC’s and Angel Groups like this structure and can see great value in getting access to companies where they are not the only investor!

It can be very beneficial for angels and VC’s to be part of a crowdfunded company, especially during the crowdfunding round, probably most important is the interest “validation of product/service” from a large number of consumers.

Even though we might only be able to present companies in January 2013, we are already working with companies seeking funding, we encourage entrepreneurs to apply now, and not wait as it takes a while to get approved.

To apply go to http://www.earlyshares.com/start

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By: tmc http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45131 Wed, 30 May 2012 16:17:46 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45131 I think crowdfunding is a good idea. I hope the SEC can regulate it without strangling it. Wall street will attempt to influence it heavily to regulate it out of existence or into their control.
Use cash, starve a Bankster!

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By: FundingpadCLO http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45121 Wed, 30 May 2012 00:05:46 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45121 @GMavros, we fully share your cynicism of Wall Street and business as usual. But you might be interested to learn that Wall Street was actually OPPOSED to, and lobbied very hard against, the crowdfunding bill; presumably because the bill creates a new corner of the financial world that Wall Street doesn’t own or control. Crowdfunding is anything but business as usual on Wall Street. Sara notes that there is always a risk of fraud any time money changes hands – thievery has existed since the beginning of time. But the fraudsters trying to pull off a crowdfunding scam will have more to do with the snake oil salesmen from the early 20th century than they will with big Wall Street institutions. It is simply a different magnitude of risk than the systemic risk we’ve seen playing out on Wall Street over the past decade(s) (and which, incredibly, there is more, not less of, since 2008, as “too big to fail” banks have gotten bigger).

This does not mean that crowdfunding fraud is not a legitimate concern. To the contrary, as founding members of the CrowdFund Intermediary Regulatory Advocates, we and other industry participants (including Sara) are working with the SEC to come up with a workable set of rules for the industry. You might be surprised to learn that these organizations are actually advocating FOR sensible regulation of the industry. We recognize that it is not in anybody’s interest (except for the scammers perhaps) for the system to be too lenient — a moderate amount of regulation is needed, and welcomed, in order to create a crowdfunding system that is sustainable in the long run. Each intermediary has its own take on things, but for example, we invite you to review Funding Launchpad’s comments to the JOBS Act, which we posted directly on the SEC’s website: http://fundinglaunchpad.com/2012/05/fund ing-launchpad-sec-comments/

Contrast that with the self-serving lobbying of big Wall Street firms, and you will see what we mean when we say that crowdfunding is not financial industry business as usual.

As Sara notes, there are legitimate concerns about crowdfunding, and we as an industry have to address them. We are working with the SEC to do precisely that. However, we also have to educate the public that all financial services are not created equal, and that investment crowdfunding for equity or debt is NOT Wall Street as usual; to the contrary, it is a grassroots reaction to Wall Street as usual, a new way forward, borne of a collective frustration with business as usual on Wall Street.

We invite you to ask tough questions, challenge our premises, push us to defend the industry. But we ask that the crowdfunding industry be evaluated on its own merits, and not be lumped into, and presumed guilty by association with, Wall Street.

Shane Fleenor
Founder and Chief Legal Officer
Funding Launchpad (created by Vim Funding, Inc)

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By: GMavros http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45111 Tue, 29 May 2012 18:50:15 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45111 Come on now Sara Hanks, Wall Street has been and always will be nothing but FRAUD. At best it is a Casino. I guess you have some personal interest in seeing some more business as usual.

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By: GMavros http://blogs.reuters.com/great-debate/2012/05/29/five-steps-the-sec-can-take-to-make-crowdfunding-work/#comment-45110 Tue, 29 May 2012 18:44:49 +0000 http://blogs.reuters.com/great-debate/?p=12893#comment-45110 What a joke, Wall Street that is….

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