Attend Pitch Night #2 – February 19 at Atlanta Tech Village

Georgia is quickly becoming the top state for equity crowdfunding – maybe the best in the country. Our state leaders made this possible when they made Georgia only the second state (after Kansas) to legalize this flourishing method of raising capital. In addition to legalizing intrastate equity crowdfunding, Georgia’s crowdfunding rules are short, simple and wisely keep crowdfunding transaction costs to a minimum.

In addition to its friendly legal and regulatory environment, Georgia has a core group of crowdfunding professionals who are committed to seeing equity crowdfunding succeed, including the non-profit Georgia Crowdfunding Association. One of those professionals is Knox Massey, who has spent much of his own (unpaid) time and money working on various intrastate crowdfunding initiatives, including working with state policy makers. Among Knox’s other contributions is hosting “Pitch Nights” in Atlanta Tech Village.

During a crowdfunding Pitch Night, select companies raising capital on a Georgia crowdfunding portal pitch their companies face-to-face, to a room of investors. Pitch Night #1 was January 21 and was a huge success with about 120 people in attendance and four companies pitching. It was clear from the enthusiasm and size of the crowd that 2014 may be crowdfunding’s break-out year.

Knox and his team are hosting Pitch Night #2, on February 19. I encourage you all to get involved – admission is free and you are sure to learn a lot about crowdfunding. Please RSVP to [email protected] Feel free to contact me with any questions: [email protected]

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What does it take to raise capital through crowdfunding?

What does it take to raise capital through crowdfunding? I’m asked that almost on a daily basis and do my best to answer it. But a good answer is complicated . . . and long. That is why I was happy to come across a detailed, well-written account of what it takes to raise capital through crowdfunding.

The account was written by Solveig Whittle about the musical act, the Aury Moore Band. Aury Moore crowdfunded $20,000 on Kickstarter to support her band’s new CD. Solveig does a great job of opening the curtain on Aury’s crowdfunding effort, revealing the work, challenges and enjoyment of raising capital through crowdfunding. It is a must read for anyone interested in crowdfunding. Solveig generously allowed SterlingFunder to republish her article here.

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SterlingFunder Visits Savannah

Thank you Caleb and R for inviting me to speak about equity crowdfunding
and the Invest Georgia Exemption to start-ups in SCAD-Ventures in
Savannah, Georgia. Thank you also Bea, for inviting me to the Creative
Coast’s Start-up Lounge event also in Savannah.

I can confirm that the rumors about Savannah’s vibrant start-up
community are true. I met a number of talented start-up CEOs who are
doing some very special things. The investor community seems
enthusiastic and adventurous – a winning combination.

SterlingFunder is continuing to spread the word about equity
crowdfunding and the Invest Georgia Exemption throughout the great State
of Georgia. If you’d like to have us visit your area to talk about,
let us know — we are ready. Thanks for reading, David

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SterlingFunder conversation with Jen Bonnett

Startup Chicks founder and ATDC catalyst joins Justin Miller to discuss when in the process an entrepreneur is ready to raise capital for their startup or company. Bonnett is a “recovering entrepreneur” who now spends her time helping other entrepreneurs by coaching them on the process of going from concept to viable company and says the biggest hurdle is in “resetting expectations to be investment-ready.” Learn more about what you need to raise capital for your startup.

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David Lilenfeld on CrowdFundBeat about the IGE

Devin Thorpe delves into the Invest Georgia Exemption (IGE) with SterlingFunder founder David Lilenfeld in this lively and informative interview. The IGE makes it possible for non-accredited Georgia investors to invest in companies based in Georgia through crowdfunding portals like SterlingFunder. David explains the IGE rule and how it’s working in Georgia to create enthusiasm from companies and addresses the challenges of educating investors about the new opportunities presented.

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A Look at the Legal Landscape of Crowdfunding – The JOBS Act and SEC Rules

The recently enacted Jumpstart Our Business Startups Act (“Act”) provides an exemption for crowdfunding under the applicable securities law and allows for the private offering of securities through a crowdfunding website. The attached article provides a background on crowdfunding and an overview of the legal landscape surrounding it. The Article provides information on the applicable securities laws and how they have, until recently, prevented companies from offering securities through a crowdfunding website.

The Article then provides a summary of the crowdfunding provisions under The JOBS Act. It describes the disclosure requirements under the Act for a company for a company looking to offer securities using a crowdfunding website. The Article then suggests that the Securities and Exchange Commission should use its rule making authority under the Act to form a connection between the disclosure requirements and the funds actually raised in a crowdfunding effort. Finally, the Article suggests that a rule tying the disclosure requirements to the amount actually
raised in a crowdfunding effort will protect investors while providing small businesses with access to capital and limited regulatory costs.

Feel free to email me with any questions at [email protected].

Blog entry and Article by Matthew Hutchens, ’13 UGA law graduate

 

Crowdfunding & the JOBS Act – Matthew Hutchens

 

 

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Raising Capital Through Equity Crowdfunding is Easier, but Not Easy

I am frequently asked by start-up and early stage CEOs about equity crowdfunding. One of my first comments is that equity crowdfunding, as compared to raising capital from traditional sources, is “easier, but not easy.” The blog entry  from Seedrs, as U.K. equity crowdfunding portal, elaborates on this simple concept.

Equity Crowdfunding began in the United Kingdom in 2012. Seedrs
(www.seedrs.com) is one of the most successful UK Crowdfunding portals. The portal recently posted a blog entry titled, What Makes Crowdfunding Pitches Successful? Startups Share Their First-Hand
Experiences.

The blog entry offers us a good glimpse into the experiences of CEOs who ran equity crowdfunding pitches. I encourage all CEOs who are considering equity crowdfunding to take a minute to read it. And feel free to reach out to me with any questions.

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