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Great article on Crowd funding developments in the USA

4 Comments

This is a very interesting article and a pleasure to read.

 http://www.wilmerhale.com/uploadedFiles/WilmerHale_Shared_Content/Editorial/Publications/Publication/Wilmer%20Hale%20(DJ%201.15.13).pdf

A few questions and thoughts from me:

It would be great to have more information or insights on what reports fundraising companies need to file with the SEC after they successfully crowd sourced funding.

I think a potential solution for dealing with a large number of “unsophisticated early stage investors” is to elect a committee as is routinely done in restructurings where credit committees are elected?

 

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Author: Miklos Grof

Miklos is the CEO and co-founder of Fundacity. Fundacity is making startups investing easier. Fundacity already supports all the notable accelerators in LatAm in their startup selection and management and they are expanding rapidly across Asia-Pacific and Europe. With the recently launched Fundacity Investments Clubs it seeks to simplify the startup investing process in emerging markets and make it accessible to more people. Miklos has unique and extensive experience in start-up formation, business development and venture financing. He has raised and evaluated investment offers in venture capital from angels and VCs from three continents for a variety of deals. He thrives at launching businesses and making sales in new geographies. Miklos currently serves as a financial advisor and mentor for various start-ups including Taggify (an online contextual advertising company based in New York and Buenos Aires). At Taggify, Miklos advises on fundraising, financial reporting to the board of investors, tax filling and cash flow management. Miklos completed his MsC in Finance at the London School of Economics and previously worked in corporate finance at PricewaterhouseCoopers in London, fund sales at UniCredit Vienna and economic research at Erste Bank Budapest. He is a Chartered Accountant with the ICAEW, Institute of Chartered Accountant England and Whales and is quinti-lingual. He is passionate about startups and entrepreneurship and spends his free time engaging with the startup community.

4 thoughts on “Great article on Crowd funding developments in the USA

  1. Following your thoughts, rather than dealing with unsophisticated early stage investors, would be better off to partner to an industry-focused intermediary to deal with them. Asymmetry of Information is the biggest issue in startups investments. The ability to efficiently reduce it is what generally makes the VC raison d’être. Even a comitee needs to be good enough in doing that.

    Great post!

    Cheers!

    • Hey Sebastian! Totally agreed. FOr this reason I think there needs to be a nomination and election process in place. Thoughts?

      • I think that…. the crowd is who should evaluate all the specific aspects of the startups (it has the “colective knowledge”), and let investors do just one thing: make a judgment about whether participate or not in the startup. Initiatives like Fundacity can make that kind of things.

      • 🙂 yes crowd sourcing knowledge that consumers close to the products and services have is a good source of information. I also hope with Fundacity we can help source good ideas in the way you suggest. This is certainly in the pipeline of development 🙂

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