Crowdfunding rules for smaller investors foil firms | 2016-08-20 | Indianapolis Business Journal | IBJ.com


AAEAAQAAAAAAAAX9AAAAJGM1ZjkxN2FmLTQ5NzUtNDU4NS04OGZkLTE1OTEwZmVhZDc3MQNew federal rules designed to make it easier for small investors to use crowdfunding have hardly gotten traction in Indiana, and crowdfunding platform operators locally are mostly using old rules to help companies raise money. Last fall, the Securities and Exchange Commission adopted Title III equity crowdfunding rules, which allowed companies to raise capital online from non-traditional investors—to the tune of as little as a few hundred dollars each. Blackett Those rules—widely known as “Regulation Crowdfunding”—took effect this May, but two of the few Indiana firms that run crowdfunding websites said the new rules come with so much regulation that it hasn’t been worth their while to put them to use. “We took a look at them and there’s still, from our perspective, a lot of dust to settle,” said Jacob Blackett, CEO of Indianapolis-based real estate crowdfunding platform Holdfolio LLC. “From a legal cost standpoint, I think it’s prohibitive, especially right now.” Brandon Smith, CEO of Indianapolis-based Localstake LLC, said his firm has been helping companies raise money under so-called securities law “exemptions” that predate Regulation Crowdfunding, because the older mechanisms are less stringent. Smith “There are other exemptions that have historically been available that have fewer requirements in terms of federal filings,” said Smith, whose firm has been helping manufacturing, technology and food-and-beverage companies raise five- and six-figure sums since 2013. “So it’s just easier to put together a deal for a business using those laws.”

Source: Crowdfunding rules for smaller investors foil firms | 2016-08-20 | Indianapolis Business Journal | IBJ.com

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About Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.
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