ARTICLES BY THE FOUNDER
May 16, 2016
For the first time since 1933, SEC regulations allow privately-held companies to raise capital from the general public in exchange for companies’ shares – something that was only previously possible via the traditional path of an IPO.
Nov 02, 2015
We are now experiencing historical momentum where technology, after disrupting just about every part of our human and social lives, is finally impacting the venture financing industry – with important implications for Los Angeles.
Oct 09, 2015
Recently I’ve been noticing a lot of hype in the entrepreneurial community regarding Reg A+ and there have been a lot of cheerful pitches about the new regulation that would allow young companies “to raise up to $50 million without the expense and complexity of a traditional IPO”.
Oct 26, 2015
Says Silchenko: “I like the idea of ‘testing the water,’ which allows companies to promote their potential offerings via public domains, including social media, and to collect unbinding pledges from potential investors to invest in the company before it files the offering to the SEC.”
Nov 17, 2014
Once I heard a fellow investor confess “I don’t do startups” with such a delighted tone, as if he were saying “I don’t do drugs.” Well, if you think about it, every startup by definition is the weakest player in the market with the least resources, an unproven business model and a team with a questionable potential to actually execute.
Dec 03, 2012
Los Angeles has always been a hotbed of opportunity and creativity. But even with the highest number of entrepreneurs living here of any U.S. city (580 per every 100,000 adults, according to a Kauffman Foundation study), it still remains better known for its entertainment industry than any entrepreneurial spirit.
Nov 04, 2013
After more than a year of delays in crafting a workable proposal around the most controversial part of the Jumpstart Our Business Startups Act, the Securities and Exchange Commission has finally given birth to regulatory guidance for equity-based crowdfunding that would enable entrepreneurs to solicit funds from the general public over the Internet in exchange for equity.
Feb 22, 2016 There's a New-Old Sheriff in Town: Royalty Financing for Young Ventures
Do you remember that story from the early '90s when Arthur Fox pioneered royalty financing as a new form of venture capital? No, me neither. But the fact is that's when we got the first revenue based financing model operating here...
Dec 27, 2015 Start-ups Wars: The New Financing Force Awakens in 2016
2016 marks the start of a new era in venture financing and capital formation and if you are an entrepreneur searching the galaxy for capital, well, to borrow a Star Wars saying - May the Force be With You.
The Force I'm referring to is the emerging army of individual...
Sep 14, 2015 Confessions of Venture Capitalists: How to Milk a Unicorn
Those who wonder what the hell is going on with the accelerating number of startups getting billion-dollar valuations and above, please raise MY hand.
According to my favorite source on this one - CB Insights, which keeps updating the full list in real time - there are, at...
Jul 21, 2015 Pot Investments Versus Angel Investments: It is Time to Worry, Ladies and Gentlemen.
The devil is in the data. How else do you explain the fact that $23.3 billion was invested in the marijuana penny stock market last year -- almost as much as the $24.1 billion total of angel investments over the same period.
The popularity of marijuana...
Jun 24, 2015 IPO for All or How to Create Your Own Currency
Okay, let me state upfront that I am completely biased when it comes to running a compelling business: for I believe if you happen to live in the 21st century, your company's stock should be worth money, and you should be able to turn around and sell it.
May 26, 2015 So You Think You Can Go Public? (Re)Meet the OTC
"Our goals are to become a home for companies raising capital through the JOBS Act, to keep building up US and global securities and to build a diverse community of broker-dealers - and to do so by using technology and transparency." That was one of the insights that Cromwell Coulson,...
Mar 29, 2015 Fifty Shades of White: Raising Equity from the Public by Start-ups
Curious? I don't blame you - especially if you are an entrepreneur or an indie-producer in search of capital and have been patiently waiting for the JOBS act rules to come to life.
In a rather surprising recent move, the Securities and Exchange Commission (SEC) chaired by...
Dec 02, 2014 How to Raise Capital But Preserve Your Equity: Royalty Based Crowdfunding (Interview With Arthur Lipper)
While some might think that royalty based crowdfunding is a new sheriff in town, the truth is that selling a portion of a future sale (royalty) in return for an investment has been quite popular for many years in the pharmaceutical and oil & gas industries, as well as among...
Nov 03, 2014 How to Fund Your Startup -- With VCs, Angels and Crowdinvesting
"Every one of my books had killed me a little more," - this profound and highly personal quote by American author Norman Mailer has become one of my favorites since I started writing about startups funding. For with each new article, the more I would dig deep into research, the...
Nov 21, 2013 The King's Speech Writer David Seidler Speaks About Crowdfunding
The Oscar-winning writer of The King's Speech David Seidler is an extraordinary human and a great friend I am fortunate to have in my life. When I asked him to open our NextGen Entrepreneurship and Global Crowdfunding Forum last week here in Los Angeles, he asked...
Nov 05, 2013 Who Let the Dog Out: On New Crowdfunding Rules and Why It Is Time for Us to Wise Up
If equity crowdfunding had the same alert system color code as Homeland Security, it would have jumped from green to orange on October 23rd, 2013.
For that was the date on which the Securities and Exchange Commission (SEC) finally issued their delayed by 15 months proposal (Title III...
Jul 16, 2013 Equity Crowdfunding and Advertising: Be Careful What You Wish For
It is official -- on July 10th, 2013 the Security and Exchange Commission (S.E.C.) lifted theban for private offering advertising. This means that once the rule goes into effect (60 days after publication in the Federal Register -- so we are talking about mid September), startups along...
Jun 11, 2013 In Crowd We Trust: My Trip to the White House 'Champions of Change' Ceremony for Crowdfunding Pioneers
I have to confess, I've never believed in the camping by the White House -- trying to make the proverbial "Instead of cursing the darkness, light a candle" as my personal (perhaps idealistic) motto. Ultimately, just like many other entrepreneurs frustrated with a broken financial system that somehow got detached...
May 06, 2013 Equity Crowdfunding: Next Generation of Angel Investors Is Not Sorry to Disrupt
Nikola Tesla wrote once, "The present is theirs; the future, for which I really worked, is mine." I can see this being quoted by any supporter of equity based crowdfunding (or crowdinvesting) -- an innovative online tool that would give you a legitimate right to own a stake in a...
Apr 12, 2013 Shift Happens: Social Impact of Crowdfunding and Why You Matter
When I arrived to Palo Alto on the eve of April 3rd to attend the Silicon Valley Crowdfunding Conference on the following day, I found myself in a group of some of the most prominent leaders in the crowdfunding community, such as Ruth Hedges (creator of
Mar 11, 2013 On Creativeness and Why Crowdfunding Will Surpass the VC industry
For the first time in a digital and human history, a film funded by the people (a.k.a. crowd) has won an Oscar. Inocente had the help of 294 backers who donated over $52K in total via Kickstarter, the leading crowdfunding platform which utilizes contribution (donation) model. The beautifully done story...
Feb 05, 2013 Conscience Is In, Greed Is Out and Crowdfunding Is On
When I opened our monthly Global LAVA group meeting last Friday, I couldn't help but pronounce it out loud: "If anyone would like to know what the market trends are, check out our LAVA (Los Angeles Venture Association) meetings and see how packed the room is!"...
Dec 11, 2012 Crowdfunding Is Not an F-word
What is the five-letter word sure to strike fear into the hearts of investors everywhere? Fraud.
But what I can't understand is why this particular f-word keeps being associated with equity crowdfunding. Sure, the involvement of large crowds statistically does increase the probability of a fraud in any industry. The...