(800) 341-2684

Call Toll Free

Contact us

Online Inquiries 24/7

Laura Anthony Esq


Guest Authors

Addressing the SEC White Paper on OTC Equities

The SEC recently published a paper on OTC equity securities on their website. While I am always happy to see more research around OTC equities, I am surprised by the paper’s overly negative and misinformed conclusions about the growth in OTC dollar volumes.

Moreover, I am concerned that these flawed conclusions, drawn from outdated research and a study of a small group of securities subject to investigative requests by the SEC or FINRA, will be used to develop new regulations that harm capital formation.  Regulatory action based on this skewed sample could negatively impact the vast majority of companies that trade successfully on the OTC Markets.

The OTC Markets are More Transparent Today

The SEC’s paper, “Outcomes of Investing in OTC Stocks,” by Joshua White, does not address the improvements in transparency and technology made over the past several years.  Instead, it focuses on negative outcomes for investors of Pink companies that provide no information to the market.

Academic studies

Credit Cards & Crowdfunding – Some Considerations

The industry, at long last, has a credit card processor willing to service equity and debt crowdfunding. As portals, brokers and other people jump to do this, I want to take a moment to discuss a few things.

WHO: the credit card company only wants to sign “platforms”, as the underwriting process for a single small issuer is just too much and not worth their time. This means brokers, funding portals, and platforms who bring on numerous offerings per year. NOTE THAT THE PLATFORM IS THE “MERCHANT”, not the issuer (critical point, as I’ll discuss below).

FUNDS LANDING: Unless you are a trust company, bank or $250,000 net-cap broker-dealer you cannot touch the money that investors send. This means that your escrow relationship will need to accommodate you, as the merchant, delivering funds from investors to the escrow account. This will be enormously complicated for the escrow agent as they will have to be able to sort through the

Top 4 Reasons Why 2016 is the Year of Crowdfunding Automation

2016 is the year when online automation revolution in equities and securities of private companies will take place.

American tech firms such as FundAmerica CrowdValley and WealthForge are already leading the way in streamlining the automation process. Most importantly, these processes are in compliance with the online requirements of the Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), as well as the Jumpstart Our Business Startup (JOBS) Act.

These online automations allow entrepreneurs, platforms and investors to verify accredited investors online. They will also be able to streamline deal flows, due diligence, the digital signing of documents, automated payments, and much more. Furthermore, dozens of broker-dealers and payment players have already started to create solutions to automate the progression of private deals.

Online automation is a revolution that will cause a positive shift in the crowdfunding industry in 2016. Here are some of the changes we will see in 2016 as a result of online automations:

1. New

Read More »

Will Pre-funded Deals Strategy cause a shift in Real Estate Crowdfunding?


Real estate crowdfunding platforms are increasingly shifting towards pre-funded deals to increase their market share and deal flow. Pre-funded deals occur when a crowdfunding platform gives a real estate developer who needs capital right way a loan guarantee without having to first take the risk of raising the entire loan amount from online investors. According to the 2015 TRN Real Estate Crowdfunding Report, crowdfunding platforms are opting for this strategy to meet the needs of developers who need to raise capital quickly  in order  to close lucrative deals in a short amount of time. In such situations, pre-funded deals come in handy because raising funds online can take longer –  usually a few weeks or even months. While pre-funded deals enable real estate developers fast funding, it also benefits investors who get returns faster because deals with developers are closed prior to the commencement of the fundraising process online.

Financing Requirements

The challenge with the innovative idea of funding

StartEngine launches as a Regulation A+ Crowdfunding Equity platform

StartEngine Crowdfunding Inc, a leading technology accelerator in Los Angeles that provides tech startups with mentorship and resources, officially launch Friday, 19th June 2015. StartEngine is set to offer users real crowdfunding. Founded in 2011, StartEngine focuses on media and digital technology market. By 2014, this company had invested in 57 new businesses and looks forward to helping thousands of entrepreneurs realize the American Dream.

The launch of StartEngine crowdfunding engine comes just a few months after the Securities and Exchange Commission (SEC) approved changes to Regulation A+  as required by the Jumpstart Our Business Startups Act or JOBS Act’s Title IV rules that allow entrepreneurs to raise a maximum of 50 million dollars in capital through crowdfunding.  These changes are often referred to as “Regulation A+.” According to Ron Miller, CEO at StartEngine, ‘Investing through crowdfunding is one of the greatest entrepreneurship advancement happening in our generation and we are happy to be part of this revolution.


Contact Author

Laura Anthony Esq

Have a Question for Laura Anthony?