Invest Crowdfunding Media Coverage

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Invest Crowdfunding Media Coverage

As Invest Crowdfund Lead for Quebec, I trace the different views that circulate across the Web with Google alerts and offer my own to inform our readers and give them a better sense of how Invest Crowdfunding is taking shape. Here is a start to a series of comments I’m contributing along the way…

Canada: Equity crowdfunding source of innovation, capital for startups – National Crowdfunding Association of Canada, October 22, 2012

Great way to start my day. Thank you for this well-written piece on Crowdfunding. As Quebec lead for Invest Crowdfund Canada, a division of CATA, we are working tirelessly to let the word out on the benefits of buying private equity in a promising business. Our own securities commission, the AMF, has discussed this issue with us and we are pursuing our global education effort Testimonials such as Mr. Christakos’ who chose reward-based crowdfunding to finance the expansion of his business reflect the (r)evolution of our ecosystem, to democratize investment and give the “little guys” a chance. Our predecessors (Australia, UK, Netherlands) have demonstrated that fraud is kept to a minimum. There are many reasons for this. One is that in social networks, reputation goes a long way. Fraudsters who see Invest Crowdfunding as a quick fix to making lots of money are in for a rude awakening. Social networks are powerful in that it allows the public to speak up and be heard by, well, millions of people. Should they have a doubt on a company’s intentions, it will spiral in a moment’s time. Second, today’s technology facilitates the detection of fraudsters thanks to ebay legacy and other platforms. Those that will succeed in Equity-based crowdfunding are those that will exert transparency from start to finish. Let’s keep the momentum…Diana

Les partisans du crowdfunding pour investisseurs s’organisent – Les Affaires, 18 octobre 2012

Merci, Julien pour cet article et d’avoir presenté la mission de notre groupe ICC-Quebec qui oeuvre vers l’adoption du crowdfunding pour investisseurs. Nous sommes une equipe de bénévoles qui partageons cette vision et contribuons nos expertises respectives: Eric Bisson (co-fondateur de la plateforme, Adam Daifallah (Relations publiques et gouvernementales), Gil Michel-Garcia (droit des valeurs mobilières aux US), Davender Gupta (coach aux start-up), Noah Redler (Start-up Canada), Giancarlo Salvo (droit des valeurs mobilières au Canada), Diana Yazidjian (entrepreneur Web et coach en medias sociaux), avec une contribution speciale de Heri Rakotomalala pour l’organisation d’événements comme l’edition Crowdfunding de Montreal New Tech qui s’est tenue le 2 octobre dernier. Notre groupe est une division de i-Canada en collaboration avec les autres provinces. Si vous êtes interessés par ce nouveau mode de financement qui tôt ou tard verra le jour, n’hésitez pas a nous le faire savoir. Une petition est en ligne!  -Diana

Open Letter to Twitter CEO – IPO Village,  October 10, 2012

As I’ve mentioned in your last piece @MSNBC, there seems to be confusion in the wording. Equity crowdfunding is for privately-held companies (with no short-term intention of going public) looking for private investors to buy equity through a web platform. Your letter to Twitter suggests a Crowdfunded DPO. Could you share articles relative to this model? Is this conducted over a web platform? I have searched all over the web and s/n and could not find anything. And who provides online DPOs (if done online) to businesses? Awaiting your reply. Diana

UPDATE: Over $1 Million in Equity Pledged on IPO Village for First Ever Equity-Based Crowdfunded IPO – MSNBC, October 1, 2012

For those of you wondering after reading the article released on NBC News last Monday “Over $1 Million in Equity Pledged on IPO Village for First Ever Equity-Based Crowdfunded IPO”, if Equity-based Crowdfunding has just been enabled in the US.  NO, this is not equity-based crowdfunding and won’t be until 2013 but yes, the term “crowdfunding” is mentioned 8 times in this article which is creating somewhat of a confusion on the streets.

I have since had discussions with securities lawyers and crowdfunding professionals to clear the air.

 …when a company goes public, they hire an investment bank to be the underwriter.  The underwriter then sells those shares mainly to institutional investors and a select group of private investors.  In this case IPOVillage is the underwriter for this offering so yes they can take pledges because that’s what the underwriter is supposed to do.  The difference is that they are offering these shares to the crowd as opposed to “select” investors.  However, this is pretty much an IPO not a crowd offering.

Sherwood Neiss, Partner at Crowdfund Capital Advisors and enabler of the JOBS Act.

I think that what is causing all of the confusion is that they are using the term crowdfuding in the context of a public SEC registered IPO rather than in the context of the offer and sale of equity securities of a private company.

Gil Michel-Garcia, Patner at Blue HF and member of Invest Crowdfund Canada


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