Thursday, August 30, 2012

JOBS Act Update: Equity Crowdfunding Will Have to Wait


Submitted by Paul Winkle
Navocate Business Sales


 

The JOBS Act, signed into law April 5th, 2012 by President Obama has eight Titles (parts).  Title III – Crowdfunding allows businesses (Issuers) to raise small dollar amounts from many investors (the crowd) though registered websites, called funding portals, in return for securities.  While most people have heard of the JOBS Act, they remain unfamiliar with a component which is poised to allow American entrepreneurs and business owners create American jobs.  Wikipedia states: “The Jumpstart Our Business Startups Act or JOBS Act is a law intended to encourage funding of United States small businesses by easing various securities regulations.”

Rule 506 is of particular importance to crowdfunding. When The JOBS Act was enacted, it directed the Securities and Exchange Commission to remove the prohibitions on general solicitation or general advertising for securities offerings relying on Rule 506. By requiring the SEC to remove these restrictions, Congress sought to make it easier for companies to inform the public that they are seeking to raise capital through the sale of securities.

Yesterday, the SEC met to “consider whether to propose rules to eliminate the prohibition against general solicitation and general advertising in securities offerings conducted pursuant to Rule 506 of Regulation D under the Securities Act and Rule 144A under the Securities Act, as mandated by Section 201(a) of the Jumpstart Our Business Startups Act.”

During the 45 minutes meeting, the majority of commissioners voted in favor of proposing rules to eliminate the prohibition against general solicitation and general advertising in rule 506 and rule 144a offerings.

Commissioners Paredes and Gallagher, who both voted in favor of proposing rules, commended the Division of Corporate Finance for their hard work but also voiced concern about the delays in promulgating the rules. Both commissioners had expected interim final rules be in place already to allow Issuers capital access under the Title II of the JOBS Act.

The SEC missed the first deadline of July 4th prescribed in the Act to enact rules. Furthermore the Commission elected to vote on proposed rules yesterday instead of enacting interim final rules.  Yesterday’s topics were originally scheduled to be discussed August 22nd.

The Commission will seek public comment on the proposed rules for 30 days prior to promulgating final or interim final rules.  Representatives from the Division of Corporation Finance expressed an interest in public comments particularly involving the approach an Issuer would be required to use to verify accredited investor status.

Charles Kwon from the Commission’s Division of Corporation Finance proposed Issuers be provided flexibility in determining if an investor is accredited.  Issuers would be required to take “reasonable steps” to verify that purchasers of the securities are accredited investors and should  consider the facts and circumstances of the transaction.  Mr. Kwon stated an issuer be objective when determining the accredited nature of the purchaser.  Some criteria he mentioned the Commission may use to determine if an Issuer took reasonable steps in that determination are:


  • The amount and type of information that the issuer has about the purchaser.
  • Type of purchaser (accredited, institutional, etc.) that the purchaser claims to be.
  • Terms of investment, such as a minimum investment amount.
  • Method used to solicit purchaser.

Further recommendation was made that the Commission not require a specific verification method or use a non-exclusive list since it would be impractical and overly burdensome and might lead to a standardized form.

A current verification method used to determine if an investor is accredited is a self-authenticating questionnaire which is sent to the purchaser by the issuer or representative of the issuer.  A full definition of accredited investor.

It’s easy to understand why entrepreneurs and small business owners remain confused about how they should proceed, and what steps they should begin addressing now, in order to be prepared to take advantage of equity crowdfunding. To help with that preparation, CrowdFundingRoadmap and Laughlin Associates are hosting a one of a kind Crowdfunding Bootcamp to prepare entrepreneurs with the key elements they need to be ready to crowdfund under the new crowdfunding bill. Details for the event can be found at Crowdfunding Bootcamp.

About Navocate

Navocate provides Business Sales and Acquisition services for Emerging Companies with revenues from $3M - $30M. Specifically, Navocate focuses on the market segment above business brokers, and below investment banks.

Tuesday, August 28, 2012

Small Business Marketing: Optimizing for a Local Audience

This article originally appeared on PRWeb
PRWeb






Unless you are reading this post very late at night; take a moment, close your eyes and think about the last search you did on your phone.

Was your stomach rumbling which initiated a search for ‘pizza’ or were you running in-between meetings and needed a quick stop at a coffee shop? In this, and hundreds of other scenarios, you are expecting the technology behind your phone and the search engine to deliver results that are relevant to your current location. And they both deliver, a million times over.
What is a Press Release?In fact, according to Google, 40% of mobile searches are local in intent. Combine this with the projection that by 2014, mobile internet use should overtake desktop use and it may be time for a mobile marketing awakening.
Any small business with an opportunity to attract and sell to a local audience can benefit from local optimization.
Evaluate Your Audience
As with any marketing initiative, it’s always important to evaluate your target audience. There are a plethora of scenarios where it absolutely makes sense to have local marketing efforts. A few of the quickest examples include restaurants, retail shops and local-intent services such as dog grooming, salons, health and fitness, etc. The list goes on.
If your small business marketing strategy already includes a focus on local optimization, leverage your customer database to mine data and potentially uncover new opportunities. For example, if you can export a list of all customers from the last 12 months and then sort by zip code.
Is there a concentration of customers from an area of the city – outside of your specific location - that surprises you? If so, this can help guide your local optimization efforts to include information relevant to that part of the city and ultimately cultivate new clients.
However, there are also scenarios where Local Optimization may not be the highest priority, if you are looking to prioritize. For example, if you are creating medical device implants and your audience is national and you don’t openly invite drop-in visits there may be other high-impactsmall business marketing tactics to pursue first.
Know the Local Search Landscape
To uncover opportunities for local optimization, start first with checking your current site analytics. Specifically, look for:
  • Broad, competitive phrases where you aren’t on Page 1 in Google and therefore likely your site showed up in local results – i.e. pizza
  • Broad, Geo-Modified phrases – i.e. Washington DC pizza
  • Specific, Geo-Modified phrases – i.e. Dupont Circle pizza
Next, perform test searches to see where your site is ranking for terms which are sending traffic to your website and those which aren’t sending traffic but are relevant. Try variations including different search engines, mobile vs. desktop and even do test searches when you are away from your location for a more realistic experience.
With this information, you can identify:
  • Keywords where you are receiving traffic, but could benefit from higher visibility
  • Keywords where your site isn’t on page 1, but should be
Apply Local Optimization
Leveraging the keywords identified in test searches, you can apply local optimization to the following.
  • Google+ Local (formerly known as Google Places)
    1. Make sure you set up and optimize local listings, which is critical in alerting Google to your location(s)
  • Your Website
    1. Identify opportunities to incorporate keywords into the site that represent high-priority phrases. Key pages include; home page, about us, locations and contact us page
  • Content (Blog Posts, Press Releases & Social Media)
    1. Blog Posts – consider created a series of localized content, such as a blog post featuring each location and what makes each one unique
    2. Press Releases – from localizing your city, MSA, keyword optimization in the post and boiler plate, press releases offer strong local signals
    3. Social Media – leverage similar efforts as the blog posts and feature your location(s) within social media content, your customers, new offerings etc all to create a larger online footprint of locally-optimized content
Localize & Measure
Go forth and localize! And when you do, it’s important to benchmark current results so you can understand what’s working and what’s not post-optimization.
Here are a few items to measure along the way:
  1. Sales
  2. Foot Traffic (if appropriate)
  3. Changes / Increases in search engine traffic (keyword referrals)
  4. Search Visibility
  5. Referrals from Social Media / Press Release Channels
With mobile searches increasing, and search engines making a more concerted effort to deliver local results across a wide spectrum of intent-based phrases, there’s no time like the present to start optimizing for local audiences. Do you have a unique approach you have tried when trying to spur local interest? Share with us below and we’ll pick the five we feel are the most creative comments and send a free copy of Marketing in the Round, by Gini Dietrich and Geoff Livingtsonto any US postal address.

Thursday, August 23, 2012

UnPitching: How “Not to Suck” at Pitching the Media



Social marketer, viral strategist and best-selling author, Scott Stratten to share how to build relationships and create awesome PR pitches in free Vocus webinar

Beltsville, MD – August 20, 2012 – Un-Marketing is Scott Stratten’s calling card.  Stratten an expert in viral, social and authentic marketing will dial in to the next Vocus (NASDAQ: VOCS) free online webinar titled: “UnPitching: How “Not to Suck” at Pitching the Media.”  Stratten of course, gets a lot of PR pitches. The PR pitching webinar will be held on Thursday, August 23, 2012 at 2:00 p.m. ET.  Participants will learn how to be more awesome in PR, social media, and more importantly, business.
“PR is a verb,” says Stratten in his newest book, The Book of Business Awesome / The Book of Business UnAwesome. “It’s what we do that affects our brand perception more than a brochure ever could.”   
Stratten champions the idea that effective PR pros work to become trusted experts that triggers a community to think of them first when they have a need. In a converging digital media world, shaping brand perceptions online and off should take priority.

Specifically, attendees will learn:

- How to write creative PR pitches that make you look more awesome
- How to create genuine with relationships with media and bloggers
- What the cost is of not listening or being great at what you do (and how to combat this)
Attendees of the webinar will also have a chance to win Stratten’s brand new book by engaging in the webinar survey and through social media on Twitter @Vocus. Details will be provided on the webinar.
Stratten is the President of Un-Marketing and has been named one of the top five social media influencers in the world on Forbes.com. His clients’ viral marketing videos have been viewed over 60 million times and he has garnered press from the Wall Street Journal, Entrepreneur Magazine and CNN.com.
The free, one-hour webinar will be held at 2:00 p.m. ET on Thursday, August 23, 2012. To register, click here for UnPitching: How “Not to Suck” at Pitching the Media.
# # #
About Vocus
Vocus is a leading provider of cloud marketing software that helps businesses reach and influence buyers across social networks, online and through media. Vocus provides an integrated suite that combines social marketing, search marketing, email marketing and publicity into a comprehensive solution to help businesses attract, engage and retain customers. Vocus software is used by more than 120,000 organizations worldwide and is available in seven languages. Vocus is based in Beltsville, MD with offices in North America, Europe and Asia. For further information, please visit http://www.vocus.com or call (800) 345-5572.

Tuesday, August 21, 2012

3 Ways to Simplify Online Marketing


The following article appears on Mashable and was written by
Jonathan Gardner is director of communications at Vibrant Media, a leading digital ad company. He has spent his career as an innovator at the nexus of media and technology, having worked in communications and as a journalist.
Technology makes the magical possible, but it’s also making marketing complicated. With ad exchanges, hyper-local targeting, and endless mobile options, it’s easy to get tangled up in an alphabet soup of advertising technology. Just one look at Terence Kawaja’s ad-tech landscape induces tears of empathy for over-marketed-to marketers. Basically, the time for simplification is here.
Simplicity is what consumers want, what marketers need, and what standard-bearers such as Apple andGoogle have shown as the way forward.
What did Steve Jobs do when he returned to Apple in 1997? He simplified the product line and, by extension, Apple’s whole business. That worked out pretty well.
The same goes for Google. Every once in a while the tech giant cuts products to move forward with new offerings. Sure, some of their initiatives — say, wind energy or self-driving cars — may seem to come out of left field. But Google’s basic promise to consumers is to develop products and services that help them organize and navigate the world in a better, geekier way. (I’m talking about you, Google glasses.)
We need to learn from these examples. When advertisers obsess over brand impact, and agencies insist on slicing and dicing every impression, it’s hard not to wonder if we’re focusing on the wrong things. For all the efficiency we’ve gained with the burgeoning of ad tech, we’ve lost a lot in the way of simplicity. Keeping marketing simple — delivering compelling ads and content that consumers actually want to engage with — could take the industry a long way toward improving performance for both brands and consumers.
Here are three rules that brands can follow to simplify their marketing for everyone involved.

1. Put Consumers in the Driver’s Seat

Let’s move away from strategies and metrics that aren’t really relevant for branding. Brands always look for some kind of number and stat to justify their online spend — CTR, view-through, attribution, “likes.” Does that make sense at all? Did brands worry about measuring the impact of a full-page spread in Vogue back in the day? The issue is over thinking the numbers and not thinking enough about advertising in the interest of consumers.
Give people choice, control, and relevance in their experience. Don’t put a roadblock between anyone and the story, images, or video they want to see. Create intriguing, value-add experiences that are relevant to the page, that make users want to click, view, and engage. Make it user-initiated and easy to start and stop engagement. Instead of real-time bidding (RTB), how about trying real-time relevance?

2. Get in the Content

We’ve seen a recent surge in attention for the “native ad,” sponsored content, and branded-content meme. But it’s really nothing new. Ever watch soap operas on TV? Those started out as radio broadcasts that were literally created by consumer packaged goods companies. Since the dawn of digital time, we’ve known that the traditional ad concept had to change and that brands needed to move into the content-creation business and get their content seen.
But what if your stellar campaign assets are part of the one-third of display advertising that, according tocomScore, goes unseen due to banner blindness? Even if you have awesome, entertaining, useful branded content like Red Bull or Unilever, you still need to surface it. How will your brand’s content be discovered by consumers who have literally zillions of content channels to choose from?
Focus your attention where consumer attention is focused: in the edit well online, on mobile, and on the tablet. Surface your content through advertising technology that gets you in the words and images where a relevant, immersive brand advertisement or content experience will really make an impression with consumers.

3. Simplify Your Strategy

Instead of doing one thing on mobile, another on tablets, and something else on desktop, consider puttingmobile at the center of the design process, then refining and customizing everything from there.
Brands can now respond directly to how consumers interact with all kinds of devices. In an era where we swipe, expand, and share an ad or useful brand content, it isn’t enough to rely on the same old creative approach. Brands need to leverage their great assets with amazing creative executions in high-impact, exciting ways that are native to devices, contexts, and formats.
So let’s leave the purchase funnels behind, and stick with these three simple rules. Chances are people will thank you with ever-coveted, ever-elusive, real engagement.
Image courtesy of iStockphotofotosipsak

Monday, August 20, 2012

Inside FundersClub, The Equity Crowdfunding Platform Destined To Redefine Venture Capital


This article appears on Techcrunch.com and was written by:

JOSH CONSTINE


FundersClub Big Logo
Don’t call it Kickstarter, because on FundersClubyou get real equity for your investments in hot startups. In just three weeks since launch, FundersClub’s platform has pulled in $1 million for Y Combinator companies, closed an oversubscribed $500,000 round for itself, and proven there’s a new way for entrepreneurs to keep the lights on. Here’s a closer look at why FundersClub is so damn disruptive.For the full rundown of how FundersClub works, check out my scoop on its launch, but here are the basics. Any accredited investor (over $1 million in net worth or earnings of over $200,000 a year) can check out the open rounds on FundersClub, learn about the startups, and invest as little a $1,000 in exchange for equity. If the startup exits, the investors can earn money, and FoundersClub plans to charge for liquidity so users can transfer their stakes before then. FundersClub doesn’t rely on the JOBS Act that would let non-accredited investors crowdfund startups. But if the bill is finalized without being sterilzed, the JOBS Act could make FundersClub even more of a game-changer by letting literally anyone invest. FundersClub is backed by Y Combinator, First Round Capital, Start Fund, and now 95 mini-angels that together poured in half a million dollars. FundersClub doesn’t necessarily replace the traditional venture capital sources, but it’s a powerful alternative. Startups can amass an army of evangelists and advisors with a vested interest in their success. It could help founders fill out rounds from angels wanting to lead, and avoid bringing in money from meddling capitalists they don’t see as good additions to their cap table. Before offering its next batch, FundersClub is accepting investments to finish closing rounds for four YC companies:Sponsorfied – A software platform that connects brands with events and influencers they want to sponsor, and facilitates the deal. Sponsorfied has signed on over 400 brands since its launch a few weeks ago. Tracks.by – A marketing service that reps top recording artists like Lil Wayne, andjust launched a “Pinterest for music” site called HipsetCoinbase – A PayPal for Bitcoin that allows for transaction fee-less money transfers. In just a month since launch it’s collected 2,000 users, $30,000 in deposits, $15,000 in transactions, and praise from Kevin Rose. Virool – Apromotional tool for video creators that’s seen revenue double each month, up to $245,000 in July from just $33,000 in April.According to info I cobbled together from its website, investor lists, and member emails, FundersClub has brought in money from early Facebook and Google employees, serial entrepreneurs, top-tier VCs using their own money, first-time angels, and international investors from over 25 countries. FundersClub gives these investors dealflow they might not have had access to. Now its launching FundersClub Bundles so angels an easily spread their money across all of the site’s open rounds and invest in startups as an asset class. Several of the companies it hosts are now offering perks to investors, such as meeting founders in person, invites to company parties, and private chat forums with the founders and fellow investors. FundersClub also manages a moderated Q&A where potential investors can ask founders questions, and it even mans the phones so angels can learn more about how the equity crowdfunding platform works. By democratizing venture capital, FundersClub could shift the axis of power towards entrepreneurs and away from professional investors. It will force VCs to prove why they offer value to startups beyond their money. And if they don’t give founders reasonable terms, a team could potentially raise funds straight from The People at whatever valuation the market will withstand. If FundersClub can work out the kinks in equity crowdfunding and establish a respected brand as a smart curator of what startups have high potential, I wouldn’t be surprised if big financial institutions or firms tried to buy it. And it promotes inovation, since it lets anyone with a brilliant vision and an all-star team join the club of funded startups, even if they aren’t a Silicon Valley insider.

Company:FundersClub
Funding:$1M
FundersClub is a web service that gives investors unprecedented access to investment opportunities and the tools to review and invest online with ease and speed. By facilitating investment with industry standard fund vehicles that have been used offline for decades, paired with a web-based screening, payments, and legal documents handling system, FundersClub is able to pool checks from many investors to make aggregated investments on behalf of individuals and institutions that were previously inaccessible to them.
→ LEARN MORE

Monday, August 6, 2012

Beverly Hills Cosmetic Dentist, Dr. Kevin Sands, Featured on “Keeping Up with the Kardashians” on E!

Beverly Hills Cosmetic Dentist, Dr. Kevin Sands, recognized for his high-profile celebrity list of clients, which includes the likes of Charlie Sheen, Kim Kardashian, Kanye West, Robert Downey Jr, Shaun White, Britney Spears, Ryan O’Neal and foreign royalty, was recently featured on Keeping Up with the Kardashians on E!


Beverly Hills Cosmetic Dentist, Dr. Kevin Sands was featured on “Keeping Up with the Kardashians” on E!, last week. The appearance centered around Khloe Kardashian’s husband, Lamar Odom (professional basketball forward with the Los Angeles Clippers) and his morbid fear of dentists. During the segment, Odom, who appeared quite comfortable after being heavily sedated, underwent hours of dental procedures that culminated with a very “happy” Odom admitting that his fear was unjustified and he would now schedule regular appointments.


Dr. Kevin Sands is one of the most successful and sought after cosmetic dentists in the nation.  Based in Beverly Hills, CA, Dr. Sands' patients range from the highest profile celebrities, entertainers, and foreign royalty to the rest of us who want to improve life by improving self-image and smiles.

Dr. Sands' patients come to him for a number of reasons.  Some are actors, entertainers, or models whose livelihood is based on them looking their best.  Others are "every day walk of life" people who simply want the confidence and youthful look that Dr. Sands can provide.

While his name may not be familiar, chances are his face would jog your memory. Dr. Sands has been featured on such programs as TLC's Ten Years Younger, E!'s Dr. 90210 and Keeping Up with the Kardashians, and countless other shows. In fact, his clients are so elated with his work that they often feel compelled to tell the world. A few weeks ago, VH1 stated that one of Charlie Sheen’s “Top 15 Most Memorable Tweets before he quit Twitter was, @charliesheen: ”today spent w/ brilliant cosmetic dentist Dr Kevin Sands! the grill now perfect for Fiat, DirectTV & Anger Management! …”

But Dr. Sands is not only committed to helping celebrities look their best, he prides himself in giving all of his patients an award-winning smile and says that each patient is unique and because of that they deserve a smile that is unique to them.

“I am committed to improving the smiles for all my patients while representing their true character,” said Dr. Sands, “I have and will always not only provide star treatment for my celebrity clients, but all of my patients”

Unfortunately, many patients have a fear or phobia over dental treatments, meaning that they do not receive the professional services that they need. For these patients, this Los Angeles dental specialist offers various sedation dentistry options to ensure comfortable, stress-free and pain-free treatments for each and every patient.

From within his Beverly Hills office, Dr. Sands offers various dental treatments, such as regular exam, x-ray and cleaning, restorative dentistry treatments including crowns, dental bridges, dental implants and dentures, cosmetic dentistry treatments such as teeth whitening, porcelain veneers, Lumineers and Zoom whitening, Invisalign aligners and traditional braces, and periodontal treatments.

For more information about Dr. Sands and his services, you can visit http://www.90210dentist.com

To view Dr. Sand's latest video, please visit: http://youtu.be/58VSacVKwl4


About Dr. Sands
Doctor Kevin B. Sands is known as  A-List smile makeover specialist. Based in Beverly Hills, California, Dr. Sands’ patients range from the highest profile celebrities, entertainers, and foreign royalty to average people who want to change their lives by improving their smiles.  After graduating from the prestigious University of Southern California School of Dentistry, Dr. Sands spent many years learning every facet of dentistry with his main focus being cosmetic dentistry.  Since then, Dr. Sands has continued his education in the disciplines of cosmetic and laser dentistry. Sands has trained with some of the world’s most prominent cosmetic dental specialists. He is rapidly becoming known as Beverly Hills’ leading cosmetic dentist for people who want to look younger and feel better about their teeth.  Dr. Sands is a member of the American Academy of Cosmetic Dentistry.

This information is being distributed for the client, by Universal Media Consultants
From top magazines to leading TV stations, UMC has been very effective at distilling client's messages in the major national media. The aim is simple. To multiply message impact and client exposure in highly targeted markets, quickly, imaginatively, and cost-effectively. For more information visit: Universal Media Consultants

Sunday, August 5, 2012

Universal Media Consultants Uses Targeted Advertising and High-Tech Social Media Tactics to Distribute Messages Around the Globe

SUMMARY


Universal Media Consultants is a targeted marketing and advertising agency that will employ all manners of media in order to build and enhance a client's brand. From traditional press releases to Hi-tech social media marketing, the aim is simple. To multiply message impact and client exposure in highly targeted markets, quickly, imaginatively, and cost-effectively.


At Universal Media Consultants, we are experts at targeted advertising and high-tech social media marketing that allows the delivery of a company’s message to the masses.

While every business provides a service or sells a product, publicity and public awareness is the lifeblood of all business, as its success or failure depends on its depth of consumer awareness. Whether the goal is to drive in customers to increase sales and revenue, or to bring attention to a cause or message, to be successful, one must gain massive media exposure to capture broader public interest and awareness.

That’s exactly what UMC specializes in doing. UMC stands alone with the ability to effectively communicating messages to a highly targeted audience that has the circulation power to redistribute that message to the masses. The primary goal is to directly affect client’s bottom-line.

UMC stands far above the competition. How?

At the core of UMC’s technology marketing practice is the unmatched ability to combine traditional marketing and advertising with new social media technologies not utilized by other advertising firms.
Like any respectable advertising and marketing firm, UMC is tapped into the most comprehensive database in the industry, filled with detailed information about more than 1.4 million global media contacts and nearly 1 million US journalists, bloggers and radio and TV media outlets. But that’s only the beginning. It’s what UMC does next that sets it apart from the competition. UMC is one of the World’s foremost experts in manipulating social media exposure to increase client’s sales and leverage client’s brand.

UMC is the only targeted marketing and advertising agency that can fully harness the persuasive power of multiple technologies to deliver a message to the largest possible audience and deliver clients the largest return on their investment.

UMC clients have run the gambit. From celebrities, recording artist and politicians, to “mom and pop” local and internet businesses. The scale of UMC services and pricing can easily accommodate any budget.

UMC understands that targeted marketing is part of any successful sales process, and is a tool to make clients more profitable. By targeting the right marketing audience, UMC assures clients the maximum return on investment.

Want to increase sales, drive traffic to a website or promote a message to the masses?

If so, contact UMC today by calling 1-205-588-5588. UMC can also be contacted via the web at Universal Media Consultants, for a free evaluation of advertising needs.

At Universal Media Consultants, the capabilities are unrivaled. The reach is limitless.


About Universal Media Consultants
Add caption
UMC provides strategic and very targeted media relations and marketing services to assist clients with a wide range of advertising that includes: campaign launches, brand positioning, business-to-business marketing, business to consumer marketing, cause marketing initiatives, special events, product launches, sponsorship activity, strategic alliances and tradeshow support; to name just a few. Additionally, the company provides specialized services to investor relations and investor awareness industries.

Saturday, August 4, 2012

Why is mainstream media ignoring Equity Crowdfunding?


How many of you have actually seen a blurb on your local or national new channel, or even a VNR on Equity Crowdfunding?  Is it because businesses cannot legally raise monies via equity crowdfunding until the SEC promulgates rules early next year?

Engage in casual conversation with people you meet and ask if they have heard the term.  My experience shows that some have, most haven’t and those that have do not know much about it.

The JOBS Act, signed into law April 5th, 2012 by President Obama has eight Titles (parts).  Title III – Crowdfunding allows businesses (Issuers) to raise small dollar amounts from many investors (the crowd) though registered websites, called funding portals, in return for securities.  While most people have heard of the JOBS Act, they remain unfamiliar with a component which is poised to allow American entrepreneurs and business owners create American jobs.  Wikipedia states: “The Jumpstart Our Business Startups Act or JOBS Act is a law intended to encourage funding of United States small businesses by easing various securities regulations.”

So why, during a Presidential election year focused on the US economy and job creation, isn’t equity Crowdfunding being promoted?  The Act passed with bipartisan support from the House and Senate.

I would like to hear comments from potential Investors and Issuers (businesses wanting to Crowdfund) to some of the questions posed below.  Keep in mind, since the SEC has not yet promulgated rules for equity Crowdfunding, background information on each category below is subject to change:

Investors

Will you invest in Crowdfund companies?
What criteria will you use to select an investment via a registered Funding Portal (sector specific investments, past performance of portal, your own research)?
What are your thoughts on resale restrictions and lack of liquidity?

Specifically, what would you like to learn more about regarding equity Crowdfunding?

There are restrictions on the amount of money non-accredited investors can invest and on the aggregate amount invested:

Non-accredited investors can invest the greater of $2,000 or 5 percent of their annual income or net worth if either their annual income or  net worth is less than $100,000; and 10 percent of their annual income or net worth (not to exceed a maximum aggregate amount sold of $100,000), if either their annual income or net worth is equal to or more than $100,000.

You will not be able to readily sell your shares for a period of one year unless they are bought by an accredited investor, the issuer or under certain circumstances (death or divorce) a family member.

There may not be an established trading market after the one year holding period and therefore limited liquidity.

Issuers

Can you recite the current rules and regulations required for an Issuer to offer securities?
What is your plan for choosing a registered Funding Portal?

How will you value you company’s securities offered to satisfy regulations and not discourage subsequent financings?

Specifically, what would you like to learn more about regarding equity Crowdfunding?

The rules can be onerous for the unfamiliar.  As an Issuer, you are required to file with the SEC and provide to investors and the relevant broker or funding portal pertinent information about your company and its owners; describe the financial condition of your business, the amount you want to raise, the deadline for raising the funds and the price and terms of the securities being offered; explain how the securities being offered are being valued; define the risks to purchasers of the securities; only provide notices which direct investors to the funding portal or broker (e.g., you may not advertise the terms of the offering).  In addition you must be familiar with corporate governance and the financial statements reporting requirements.

That’s why it is important to start the education process early and align yourself with industry experts who can guide you and help manage the reporting requirements of the Act. Consider the long term picture too. Crowdfund Investing portals that have thoughtfully considered how to educate and align you, the owner, with capable experts will pay off. Select ones that can introduce you to Merger and Acquisition (m&a) firms that specialize in helping Emerging Companies. You will need their help securing future financing or negotiating and executing the sale of your company. This will help keep your new shareholders satisfied.

Current rules in the Act require issuers to make available to potential investors the price to the public of the securities or the method for determining the price, provided that, prior to sale, each investor shall be provided in writing the final price and all required disclosures, with a reasonable opportunity to rescind the commitment to purchase the securities. Issuers must also show how the securities being offered are being valued, and provide examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

Navocate provides Business Sales and Acquisition services for Emerging Companies with revenues from $3M - $30M. Specifically, Navocate focuses on the market segment above business brokers, and below investment banks. For more information please visit www.navocate.com.


Wednesday, August 1, 2012

Wall Street News Alert Calls It Quits - 10 Year Old Firm to Liquidate Assets

Wall Street News Alert, the entity that was responsible for the majority of “penny stock” promotions and emails for over a decade, has left the investor relations business. The company, once seen as one of the largest and most well-known small cap stock advertising firms, represented hundreds of clients before closing the doors and deciding to sell its assets.


Wall Street News Alert, the electronic advertising subsidiary of Wall Street Capital Funding, has closed the doors after a decade of representing “penny stock” clients. The investor relations firm, which described itself as, “one of the internet's premiere financial destinations, offering the investment community some of the market's leading emerging opportunities,” promoted hundreds of companies for the purpose of, “introducing millions of potential investors to unknown companies.”

Nevertheless, the company undeniably experienced a great run throughout the decade, often being compensated up to $21,000 per day to email to its database of investors. While the company’s website has not been active for some time, a Google search reveals that the website still has over 140,000 press releases indexed on the web. Once thought to solicit emails to a proprietary list of over a million recipients at once, the company also issued thousands of “investment opinions” for its clients.

Operating numerous websites, purported to have received over 250 million hits, to generate investment leads and email addresses, the company is now selling its websites and investor database. Interested parties should contact wsna@bellsouth.net

This information is being distributed by Universal Media Consultants.
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