CannaFundr Merges | Crowdfunding and Cannabis | MJINews

The spirit of the JOBS Act is strong, though its flesh (that is, its actual implementation) is weak. However, the spirit of that 2012 enactment may have just created an important new conduit for the movement of cash into the growing legal cannabis industry in the United States. The Act, known as the Jumpstart Our Business Startups Act, signed into law by President Obama in April 2012, came into being in large part to encourage crowdfunding, the specific subject of its Title III. Crowdfunding itself, the practice of raising money for entrepreneurial ventures from large numbers of people, often in small amounts per person, a practice generally these days accessed via the internet, predates the JOBS Act, but Title III tries to achieve the act’s titular “jumpstart” by virtue of making this easier. Daniel Broderick, writing as an HSBC contributor in Forbes, recently estimated that the size of the crowdfunding market jumped over $5.1 billion in 2013.   One Industry at a Time In that context, CrowdFund Connect seeks to bring small and medium sized startups from a number of industries to its widened investor base, one industry per platform, one platform at a time. The legal cannabis industry has recently received its time, and now its platform. Randy Shipley, the cofounder and chief executive officer of CrowdFund Connect, recently spelled out the company’s history. He said that CrowdFund Connect began life with the name SocialGravity, an integrated platform-as-a-service (paas) that aimed at connecting donors with non-profits via crowdfunding. Shipley and his partner, Vincent Pitetti, shifted their focus in late 2012, soon after the JOBS Act became law and crowdfunding became a mainstream investment strategy. Shipley and Pitetti incorporated CrowdFund Connect with its present name in 2013. Shipley said that “the sites that we’ve launched” under this umbrella since that time, “haven’t really used the JOBS Act since that has yet to be implemented by the SEC.” They make use instead of earlier legal and regulatory mandates to the same crowdsourcing end, though acting in the spirit of the unimplemented law. In May 2014, Shipley and Pitetti launched Healthios Xchange, a marketplace for private equity in the healthcare space, as their first such venture. In the months since, this site has raised more than $350 million for 40 companies.

Source: CannaFundr Merges | Crowdfunding and Cannabis | MJINews


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