Crowdcheck Blog

The SEC today announced that it would start accepting comments from the public on the rulemaking it has to undertake under the JOBS Act, even before it proposes any rules. When it does propose rules, you'll get a chance to comment on them, but this is an opportunity to help shape the rules before they are proposed. You can ask for a meeting with the SEC, or you can send in written comments. If you're planning to engage with the SEC, here are a few tips to bear in mind: 1. The SEC is looking for specificity. Contact the Staff to alert them to a particular problem, or a particular solution. Saying things like "the Staff should bear in mind the need to…

Our CEO's response to Matt Taibbi's -- shall we say less that supportive -- take on the JOBS Act has been picked up by Politico's Playbook!

Yesterday on his Rolling Stone blog, Matt Taibbi took a swing at the JOBS Act, but missed and missed hard. Mr. Taibbi asks “how does a law exempting a Silicon Valley startup from independent accounting actually encourage investment?” Well, it wouldn’t help encourage investment if that’s what it did. It doesn’t. No-one is being exempted from independent accounting. Nor are they being permitted to go to market “without publishing real numbers.” Still less are they being permitted to “make their projections up on the backs of envelopes.” Mr. Taibbi is constructing a whole battalion of straw men and stabbing them to death with his Pointy Pen of Outraged but…

Crowdfunding Sites Launch a Preemptive Strike on Fraud - Bloomberg Business Week

Do you think corporate crowdfunding holds the promise of making our economy more vibrant and democratic? Are you passionate about helping entrepreneurs succeed while keeping small investors protected from fraud? Do you want to work at a young company competing with the big boys while helping other young companies compete with the big boys? Do you have rock solid web design skills? Then CrowdCheck is the place for you! CrowdCheck Inc. an Alexandria VA based start-up that provides due diligence and crowdfunding services to small businesses and small investors, is looking for a web designer/webmaster to join our growing team. You will be responsible for designing…

Obama Signs Small Business Legislation

3 Things Investors Should Know about Crowdfunding

The President has just (like, a minute ago) signed the JOBS Act of 2012, which includes the authorization for crowdfunding. So when can we actually start crowdfunding? NOT YET, and please folks, let’s be careful out there. Some cautionary lawyer-talk after the jump. Two things need to happen before Crowdfunding Launch Date. First, the SEC has to adopt its crowdfunding rules. And second, it has to register funding portals. Because offers and sales of crowdfunded securities cannot be made except through registered portals. (And notice I said “offers” there. More on that below.) The SEC has 270 days to adopt its rules, which would take us to the end of the year.…

1. Know what you are buying Startups can offer equity or debt, or different classes of shares with different rights. Understand what you are buying and what rights you have. In an equity investment, the investor becomes a shareholder, and owns a small part of the business. Whether the shareholder has a vote or not depends on what sort of shares the startup is offering, and you might not have any say in the company's direction. Until the company "goes public" and does an IPO, the only way to get any of your money back is through the private markets: finding an accredited investor (someone rich) to buy your shares, selling the shares back to the company (if…

Want to Raise Money With Crowdfunding? Consider These Tips - Entrepreneur Magazine