JOBS Act crowdfunding SEC

Crowdbouncer's Bob Carbone talks crowdfunding, the JOBS Act and

Robert Carbone

Crowdbouncer’s Bob Carbone talks crowdfunding, the JOBS Act and the industry’s future

Bankless Times recently sat down with Bob Carbone, the CEO and Founder of the compliance control provider CrowdBouncer, a Platform-as-a-Service solution for JOBS Act compliance and back-end transactional processing for equity crowdfunding portals.He is also a board member of CrowdFund Intermediary Regulatory Advocates. We talked about the JOBS Act, regulation, and the future of the industry.

Do the delays in the implementation of the JOBS Act worry you?

Not in the long-term. Much of the delay was related to churn in leadership at the SEC and not substance of the JOBS Act. Chair Mary Jo White in her opening remarks during the SEC meeting to adopt Title II rules was strongly supportive of the new marketplace created by the JOBS Act, which bodes well for the long-term success and vitality of general solicitation and crowdfunding.

A recent study posits that burdensome regulations will have a negative impact on crowdfunding. What areas should be regulated and which ones left alone?

This is a very nuanced question, given the granular nature of securities laws. Philosophically, the SEC should regulate procedures and not substances. The SEC should not interfere with the types of companies, types of offerings, deal terms, or other specific aspects of a transaction–and so far the SEC has shown no intention of doing so. The SEC should regulate the procedures that enforce transparency and discovery in offerings and allow investors to make educated investment decisions.

Tony ZeruchaAre you worried that some overregulation will occur that will negatively impact crowdfunding?

By and large, with respect to Title II of the JOBS Act, I think the SEC has struck a fair balance by requiring that “reasonable” safeguards be taken to ensure investors are accredited. However, I feel that the recent proposed changes to Form D filings and the requirement to file all general solicitations with the SEC will create costs and friction that have no real value-add from a regulatory standpoint. These changes appear to be largely a data mining expedition into activity in the marketplace and not new protections.

What advice would you give to a new crowdfunding portal or business planning on utilizing crowdfunding during this waiting period for the JOBS Act to become more crystallized?

Think about differentiation. The space for both portals and issuers is quite crowded. If you don’t have a first mover advantage, differentiation in features, market segment or approach is necessary to attract sustainable deal flow and capital. Be able to answer the question, “What is it that you do better than any other portal?”

Echo Bay Books Crowdfunding Secrets: Tips, Tricks and Secrets To Funding Your Dreams (Quick and Easy Guides)
eBooks (Echo Bay Books)

How much capital are

by MyThreeCents

We talking about here? And do you have a business plan or just an idea?
Depending o the amounts you need there are different approaches to how to get it. You could do a crowdfunding campaign in terms of online development like KickStarter or Indiegogo.
Also, are you looking for someone to just "donate" money to you? Don't we all wish! Or are you looking for an investor to give you a loan or be a partner with you in the company?

I Don't Crowdfund, I Invest  — Forbes
From my years as a private equity investor and as the founder and CEO of an accredited investor crowdfunding platform, I think recognizing the difference between investing and crowdfunding is crucial.

How Crowdfunding Platforms are Changing the World of Real Estate  — Crowdsourcing.org
Editor's Note: The following is a guest post from Stefano D'Aniello, founder of GroundBreaker. D'Aniello discusses three ways that accredited investor crowdfunding platforms have altered the landscape for real estate investing.

O'Reilly Media The Hardware Startup: Building Your Product, Business, and Brand
Book (O'Reilly Media)

Managing an Accredited Investor Crowdfunding Project [Part II]  — Crowdsourcing.org
Editor's Note: The following comes to us from Thomas Vass, owner and manager of The Private Capital Market, a fee-based subscription crowdfunding site.

Problemio.com Funding & Fundraising Ideas
Mobile Application (Problemio.com)
  • Five articles on the topic of raising money for business or nonprofits via loans, grants, investment, or other means
  • Ability to ask questions which are answered by a live entrepreneur (responses within 48 hours)
JD-Biz Corp Publishing How To Use Crowd-Funding To Raise Money For Your Business Ideas (Make Money Online)
eBooks (JD-Biz Corp Publishing)
McGraw-Hill The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media
eBooks (McGraw-Hill)
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