Today Crowd Valley publishes Crowdfunding Market Report for Q2 2014, unveiling the latest trends of this fast-growing industry, as observed by the company during the last quarter.
It's almost a year since Title II of the JOBS Act made its way into law July 10th, 2013 . Despite the ground breaking amendments to allow public solicitation of investment offerings and changes to offerings of securities sales, it still seems the industry is eagerly anticipating taking it to the next level. Throughout the past fourteen years I've handled PR launches for countless products, services and companies. Eventually I sat in the position of being an entrepreneur myself. When Grow VC launched in 2008, the founders (of which I was lucky to be a member) had a great idea and even greater ambition, and the group has flourished in the six years since. This short article will cover some of the PR challenges and opportunities we faced with that launch. Every startup is different; however, every launch shares some basic elements. This common ground can provide fruitful learning opportunities, as we can all draw insights from shared experiences. I'll go through the following in order: Press Relationships; Importance of Timing; Key Messaging and Taglines; Keeping Communications Appropriate; Growth After Launch. Following the previous two publications in Q3 and Q4 2013, today Crowd Valley publishes the third Crowdfunding Market Report, which is built on data collected during Q1 2014. March 27th 2014 was a triumphant day in the world of crowdfunding when the European Commission (EC) issued “Unleashing the potential of Crowdfunding in the European Union”; the first Communication publishing of its nature within the EU. We first introduced this topic issue March 31st (link here), and we will now take a closer look into the implementation of regulations by the EC. Since the early days of crowd investing, which for us mean 2008 and 2009, we have seen the need for a connected ecosystem, rather than isolated silos. This is today more true than ever, and the crowd investing market has developed to included many different dimensions to consider. The depth and breadth of the equity and debt capital markets in the United States has been a key driver of the country's economic success. By making capital available to companies of all sizes, from start-ups in Silicon Valley to blue chips on Wall Street, the U.S. system has helped fuel innovation and often given US companies an edge internationally. Through the creation of Rule 506(c) (defined below) and other changes to the rules governing capital raisings in the United States, lawmakers in the United States have sought to open the capital markets even further. The FCA has announced their regulatory approach to crowdfunding and it will have direct impact on the sector. Investors will be better protected and platforms will have to adhere to rules already commonplace within the wider financial services industry. This deliberate positioning of crowd funding within the financial services industry and not tech or social media is a good move for the sector. The fear that regulation will strangle burgeoning businesses is misplaced as most companies already work to the standards, but new entrants from the tech or social media sectors will have to structure and manage their affairs correctly. Having a global vantage point and developed operations in this market for several years now, we’ve been paying attention to several developments. One of those, has been the evolution of crowd investing applications to more professional investor audiences and sophisticated systems. In the last couple of years, crowdfunding has emerged in six different continents, as Crowd Valley’s recently published report shows. From USA to France, from Nigeria to Australia, the company has received requests for crowdfunding services and technologies from many countries. But what about China? What is the situation for crowdfunding there? Could a democratic financing mechanism, like crowdfunding, establish itself in the Chinese Republic? |
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