Direct Public Offerings & Crowdfunding

A photo of the Bulgarian First Investment Bank...
A photo of the Bulgarian First Investment Bank from Sofia, 2006. (Photo credit: Wikipedia)

Obviously this is not our standard review style post, we believe that in order to keep ahead of the crowdfunding trend we must devote a section of our site to Direct Public Offerings (DPOs). Going forward we will be researching and reaching out to firms that provide services allowing small companies to raise capital form the public without the expense of a Wall St. investment bank.
Over the last 25 years Direct Public Offerings have ebbed and flowed in both quantity of offerings and success with which those offerings have been received. Our belief is that with the growth of social media, crowdfunding coming mainstream and the passing of the JOBs Act, Direct Public Offerings will finally get the recognition they deserve as a cost effective and democratic means of raising capital for small business.
Over the next few weeks we will be providing reviews of various DPO service providers. The combination of Direct Public Offerings and crowdfunding will in our opinion eventually be the “winner” from the JOBs Act by combining the established secondary markets with the cost effective benefits of an equity crowdfunding style platform hosted directly on the issuing companies website.

 

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Crowdnetic Acquires NowStreet Journal and Strengthens its Management Team with Key Hire

Industry Pioneers Unite to Construct the Infrastructure Necessary to Support the Rapid Growth of Crowdfinance

NEW YORK–(BUSINESS WIRE)–Crowdnetic, the leading provider of funding portal platform technology and market data solutions, announced today that it has agreed to acquire NowStreet Journal, the preeminent educational platform for the burgeoning industry of crowdfinance.

Crowdfinance, perceived by many as the next frontier in financial services, has been increasingly popularizing emerging asset classes such as peer-to-peer (“P2P”) lending and securities-based crowdfunding. These promising assets democratize the flow of capital by giving America’s smaller investors and businesses newfound opportunities to prosper in a financial system that tends to favor large corporate entities and institutional buyers.

While financial terms of the agreement were not disclosed, upon completion of the acquisition, NowStreet’s Founder, Dara Albright, will join Crowdnetic’s management team as its Chief Strategy Officer. In her new role, Albright will drive the expansion of Crowdnetic’s existing product portfolio as well as work with the team to launch a new line of products specifically designed to help conventional financial service providers increase assets under management, widen margins and add new revenue streams.

“It is an honor for me to join the Crowdnetic team and to have the opportunity to work alongside the very individuals who helped build the infrastructure in the 1990’s that allowed financial services to go online in the first place. Since starting NowStreet a few years ago, it has been my personal mission to help ignite the resurgence of the small cap underwriters who, throughout history, have consistently fostered economic growth by bringing some of the world’s most promising innovations to the investing public. With Crowdnetic’s technology and expertise, I finally have the chance to see this goal to its fruition,” said Albright.

Commenting on the acquisition, Luan Cox, Crowdnetic’s CEO, said, “Dara is a true visionary who, through NowStreet, has brought a great deal of Wall Street awareness to the nascent industry of crowdfinance. This union will not only bring a recognized media brand under the Crowdnetic umbrella, but it will also enable us to broaden our product suite, expand our sales reach and significantly increase both revenue and shareholder value.”

ABOUT CROWDNETIC
Crowdnetic is a leading provider of funding portal platform technology and market data solutions to the private equity and crowdfunded securities industry. We operate the industry’s premier centralized hub for real-time market data aggregated from platforms across the globe. Founded in 2011 by experienced financial technology and data industry experts, Crowdnetic is committed to creating a productive and sustainable marketplace for web-based private raises. Bringing over 15 years of experience in building complex, data intensive customized solutions, the leadership team has been instrumental in revolutionizing the equities industry through developing market data and analytics solutions. We are now bringing our expertise to the increasingly intricate crowdfunding space. Additional information can be found at www.crowdnetic.com.

ABOUT NOWSTREET
Symbolizing the Wall Street of tomorrow, NowStreet is a leading financial media and advisory company on the forefront of financial innovation. NowStreet is most known for its cutting-edge commentary and acclaimed financial events that introduce crowdfinancing mechanisms and neoteric asset classes to Wall Street. Some of the most prominent figures in the financial industry as well as the legislature have participated in NowStreet events. Our programs help issuers, investors as well as conventional financial service providers capitalize during this unprecedented period of financial industry disruption and regulatory reform. Additional information can be found at www.nowstreetjournal.com.

 

Securities and Exchange Commission has approved a proposed amendment

Seal of the U.S. Securities and Exchange Commi...
Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

 

NEW YORK, Oct 17 (Reuters) – The U.S. Securities and Exchange Commission has approved a proposed amendment from Wall Street’s industry-funded regulator that helps investment banks use a new U.S law aimed at easing the way for small companies to go public.

 

Six months after the JOBS (Jumpstart Our Business Startups) Act was passed amid much fanfare as a way to help companies raise money in public markets, banks have not embraced some key provisions, which allow analysts to join bankers on pitches to investors, and publish research reports before a company goes public.

 

The new amendment from the Financial Industry Regulatory Authority, effective immediately, eases the restrictions somewhat by aligning rules of the financial watchdog with those of the JOBS Act. The SEC approved the amendment on Oct. 11.

 

The rule change removes the previous 40-day quiet period after an initial public offering so underwriters can publish research. The change would also allow analysts and bankers to attend IPO pitch meetings or “bakeoffs” together, as long as the analysts don’t solicit business.

 

However, the FINRA change involving communication between analysts and their investment banking colleagues does not apply to Wall Street’s largest banks, bound by a separate regulation, the Global Research Settlement.

 

Read More Here

 

 

Over $1 Million in Equity Pledged on IPO Village for First Ever Equity-Based Crowdfunded IPO

NEW YORK, NY–(MarketwireOct 1, 2012) – IPO Village, the first of its kind crowdfunding platform to host initial public offerings, announced today that they have received over $1 million in pledges for their first crowdfunded IPO set to go live in the coming weeks. IPO Village is an organization that uses crowdfunding to bring exclusive pre-IPOs to the everyday retail investor, allowing “Main Street” investors to access stock that was once only reserved for the Wall Street elite.

“We are thrilled with the number of people signing up to lock in a chance to purchase shares at pre-IPO prices,” says Howard Orloff, the managing director of IPO Village. “Our first company is set to go public within the coming months and already $1 million in pledges from approximately 500 retail investors have been received through IPOVillage.com. Retail investors are excited to secure their place in line for our first crowdfunded IPO.”

While investors are not committing themselves to purchase stock, they are securing their place in line. Once an investor signs up on their website they receive an email giving the name of the company and detailed information to begin their research, before making an investment decision. When the offering comes out of the quiet period, investors who sign up will receive an alert letting them know that the opportunity to purchase stock has opened. Investors will receive the option to purchase the pre-IPO stock based upon the day that they signed up on the site.

“First come first serve is really the only fair way to go about it,” says Simon Erblich, Founder of IPO Village. “Right now pre-IPOs go to the wealthiest investors and institutional investors first. The average ‘Joe’ does not get pre-IPO stock that just doesn’t happen. By the time they see the stock, it has been marked up at least 22%. By using the crowd to fund IPOs we are bringing Initial Public Offerings back to the Public where they belong and were intended to be.”

There’s only a short period of time remaining before the first official offer goes live, but IPO Village is already more than half way towards reaching its goal, since over a million dollars has already been pledged. With such aggressive interest already in place, the Company strongly anticipates that their first offering will sell-out very quickly once investors are allowed to start investing as the line of investors surpasses the 1000+ mark.

IPO Village does not have to wait until the JOBS Act is fully implemented in 2013 as they are “crowdfunding” publically traded stock. Their launch will mix high-tech and traditional finance in a way that has not been seen before. To learn more about crowdfunding IPO investments, gain more insights on IPO Village, or secure your place in line, visit IPOVillage.com.

ABOUT IPO VILLAGE
IPO Village offers IPO investment opportunities to every retail investor. While other crowdfunding type sites focus on private offerings, IPO Village’s hosted public offerings provide its member investors with liquidity and a foreseeable exit. The Company employs a “first-come-first-served” policy with all parties equally welcome to invest. Since IPOs are typically oversold, IPO Village guarantees a place in line and encourages retail investors to sign up now at www.ipovillage.com.

Contact:
Kimberley Brown
Leverage PR
Email Contact
Phone: 512.271.9489, Ext: 702