“Most importantly, FINRA’s public comment period does not end until February 4,” Almerico says. “There cannot be any “funding portal” or equity crowdfunding site open for business until the FINRA rules are final.” Almerico notes that even when the FINRA rules are final, then every funding portal must register and be approved by FINRA. “By law, FINRA will have 60 days to process the application. So, at the very earliest, we may see our first equity crowdfunding portal in early April 2014.” Almerico notes that other factors could delay the first site opening until mid-summer, or even later. “If either the SEC or FINRA decides to change the proposed rules in any way before they become public, there could be another delay,” Almerico says. “It is even possible there could be another public comment period if that happens. If the SEC can’t decide what the final rules should look like, they could drag it out even further.” Despite this, Almerico notes that he is optimistic that the first funding portals will open in mid-2014. “Nobody really knows when,” Almerico says. “Maybe we should ask The Amazing Kreskin for a prediction.” About Kendall Almerico: Kendall Almerico is a nationally recognized crowdfunding expert and JOBS Act expert who has appeared in USA Today, Huffington Post, the New York Daily News, Business Insider, Fox Business Network and hundreds of newspaper, blog, radio and television interviews including CNN and The Sean Hannity Show.
BEST IN LAW: Crowdfunding gets equity boost
Im also happy to see the approval of the bad actor provision which strengthens investor protection. It usually takes 30-60 days for rules to become official by being published in the Federal Register. Until the rules are published in the federal register, Companies may NOT generally solicit. This is obviously important. With the adoption of these rules, it is great news for equity crowdfunding platforms. But some dont agree that this one Ruling does enough, considering the need for access to funding options. A few call it a step forward, but not yet transformative because it wont touch the entirely new potential capital market of non-Accredited investors and help formalize and grow the friends and family funding market. Implications For Title III, Equity Crowdfunding With Non-Accredited Investors These first Rulings bode well for the remaining JOBS Act Rulings for crowdfunding, namely Title III, which will allow non-Accredited Investors to take part in equity crowdfunding.
SEC Finally Moves On Equity Crowdfunding, Phase 1
Kairos recently just surpassed the one million customer mark in Canada. Kairos is now working on its next phase of expansion into the United States market. They hope to use their popular model successful with the Canadian population of 30 million and expand to the 300 million viewers and readers that make up the US market. To fuel the opportunity at hand, Kairos Transmedia has launched a fundraising effort and are looking for strategic partners in growth. Kairos Transmedia CEO Bill Stuart commented, We have already established operations in Florida, educating youth with our common core curriculum using experiential computer and media literacy. We are experts in common core curriculum development and delivery, which is currently adopted by 48 out of the 50 states within the US. We have one million readers and are embedded in 500 schools in Canada teaching over 100,000 kids and are looking forward to a successful US launch. Fundable COO Elliot Schneier affirmed, We very much like the Kairos Transmedia business plan, their direction, and the traction they are experiencing.
Kairos Transmedia Raising Equity with Crowdfunding Campaign on Fundable
The website has also facilitated funding for a few big-ticket projects, such as Zach Braffs movie project Wish I Was Here, which raised more than $2 million in just three days. Passed in April 2012, the federal Jumpstart Our Business Startups Act, known as the JOBS Act, directed the SEC to create rules allowing businesses to issue shares of stock through large networks of small investors. Once the proposed regulations are finalized, entrepreneurs and artists will not only be able to solicit donations on websites like Kickstarter.com but appeal directly to the public via equity crowdfunding websites to find investors who want to buy actual shares in their business or project. Each individual investment must be relatively small, around 5 percent to 10 percent of an investors annual income or net worth, but through the powers of social networking and Internet promotion, these small investments could add up quickly.