The JOBS Act is often associated to crowdfunding. This is quite obvious, someone would probably think, because the JOBS Act regulates crowdfunding. True, but the law proposition is not only limited to that. In fact, even though it is quite common to read about the JOBS Act in relation to crowdfunding, the law proposition touches upon other interesting topics.
“Nothing is as powerful as an idea whose time has come” Victor Hugo When analysing the crowdfunding market it is typically broken down into four main categories such as donation, reward, debt and equity. Securities crowdfunding, which is the generic clause for debt and equity crowdfunding, is sometimes also called crowdfund investing or crowdfinance. As argued in a previous post, crowdfunding is not a new asset class; it is rather a new conduit for financial flows which dis-intermediates the supply chain of capital allocation, and provides efficiency and transparency in the investment process, enabling investor and issuer to interact in better and more productive ways. In addition it reduces the search cost for the investor and allows for a high degree of risk diversification. Crowd Valley Offers the Framework to Enter the 21st Century Using Newly Adopted JOBS Act Title II9/23/2013
PRESS RELEASE Monday 7 AM EST, September 23, 2013 San Francisco, California Crowd Valley Offers the Framework to Enter the 21st Century Using Newly Adopted JOBS Act Title II Today, September 23, Title II of the JOBS Act, adopted by the Securities and Exchange Commission (SEC) becomes effective, allowing companies publicly to solicit investors and advertise the sale of securities. Crowd Valley Inc, the US-based platform and back office provider, offers technology, services and methodologies for professional organizations to take advantage of this paradigm shift in the financial market. The web is full of pages that tell you how to run a successful crowdfunding campaign, but there is almost no one giving suggestions on how to launch and run a successful crowdfunding platform. Whilst we do not have the secret recipe to guarantee the success of your platform, we are able to reflect on what has worked best, having helped to successfully launch platforms on five continents. We are not reinventing the wheel - just applying some good suggestions to the case of a crowdfunding platform ready to lunch. "The secret of change is to focus all of your energy, not on fighting the old, but on building the new." Dan Millman Crowdfunding is often labeled as a new asset class. Generally speaking assets do represent value of ownership and asset classes are groups of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. Well-known asset classes are equities, fixed-income, money market instruments, real estate and commodities. So in the strict sense crowdfunding is not a new asset class, but it facilitates the investment process via online platforms across many different established asset classes. It was easily predictable that crowdfunding would have been sooner or later applied to the education sector. An easy prediction, because the market of crowdfunding is undergoing a constant expansion in many different fields and education could not be left out, as it represents one of the most important bridges to our future. As Crowd Valley celebrates its first year of independent operations in the crowdfunding market, it is time to take a brief look at the first year's progress and market evolution.With the JOBS Act signed into law in April 2012, the Grow VC Group was re-focused to meet the demands of the growing crowdfunding market. With the effort to focus the group, Crowd Valley was spun off as a Platform as a Service and infrastructure provider, with its own management, operations and strategy. It was a privileged milestone to achieve, having assembled a global team of brilliant people and being able to appoint a team that has worked together for several years to lead the way in assembling the infrastructure for the new securities market. |
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