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Will Equity Crowdfunding Be Too Expensive?

The Cost of EquityThere has been some debate amongst the North American investment community about whether the legalization of equity crowdfunding would unleash a new wave of clever fraudsters on an unsuspecting public. Recently, the Ontario Securities Commission (OSC) published newly proposed exemptions to become available to certain investors, including a proposed crowdfunding exemption. The proposed framework, which is likely to become law after a 90 day consultation period, seeks to strike a balance between protecting the public and embracing the inevitable investment paradigm shift to crowdfunding. The OSC has found a convenient middleman on which to place the burden of ensuring that offerings are in fact Continue reading

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Candy is Dandy, but Cash is still King!

The Dynamics of Rewards v. Equity and Their Impact on Future Crowdfunding Campaigns

As we move towards the allowance of equity crowdfunding in North America and elsewhere, parties seeking to crowdfund ventures will want to give serious consideration to the dynamics and impact of offering rewards or an equity stake in the venture being funded. Going forward, for the reasons outlined herein, one expects that more and more, future campaigns will have a creative blend of both, depending on the project being funded.Cash is King

Rewards of course can be Continue reading

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Don’t Have the “A” Team? 3 Ways to Mitigate This Funding Shortfall

Have you ever heard the saying “bet on the jockey, not the horse”? It means savvy investors will invest in an “A” team (the jockey) and a “B” technology (the horse) but not the other way around.

It’s not unusual to not have the “A” team in place when you start your company, but here are three things you can do tohelp mitigate that shortfall.Jockey and Horse

(1)  Strong background: When marketing your product in advance of your crowdfunding launch, make sure to highlight the experience and background of your team. If your management team experience is weak, that’s okay if your product Continue reading

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Hacking Kickstarter: A Blessing in Disguise or the End of Crowdfunding?

Last Saturday, February 15th, Kickstarter, revealed that it had been hacked. While the hackers did not obtain users’ credit card information, it was announced that “accessed information included usernames, email addresses, mailing addresses, phone numbers and encrypted passwords.”

What does this mean for the crowdfunding industry?

What does this mean for the crowdfunding industry?

What does this mean for crowdfunding?

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