Crowdfunding lawyer

Tough love as crowdfunding grows up

DOUGLAS ELLENOFFOn a recent Thursday night, the crowdfunding startup iFunding hosted a party in a Fidi basement apartment that offered a glimpse of what the future of New York real estate could look like.

Stepping through the door felt like entering some parallel universe in which the industry is young, multi-ethnic, laid back and virtually jacket- and tie-less.

The apartment belonged to a friend of the company’s founders, William Skelley and Sohin Shah. There were no waiters, hors-d-oeuvres, pre-written speeches or PR reps.

Developers, brokers and investors mingled between kitchen and living room, drinking beer out of the bottle and struggling to understand each other over the music blasting from speakers. A palpable optimism filled the room as most guests seemed certain they were witnessing the beginning of a revolution in real estate financing.

“It’s going to be absolutely huge, ” said one guest. “In a few years, everyone will be doing it, ” added another.

But go to any more traditional real estate event and you will find little enthusiasm for crowdfunding. Its numerous critics see it as a passing trend, a dangerous method that will defraud clueless investors, or both.

Critics and proponents of real estate crowdfunding have argued that time will prove them right.JASON FRITTON Now, six months have passed since its de-facto legalization and it may be time for a first assessment of how far it has come and where it is heading.

Crowdfunding — the practice of soliciting money directly from a large group of people, usually via the internet — used to be primarily a way of financing small, non-commercial projects.

This changed with the passage of the JOBS act in 2012, which called for a legalization of the crowdfunding of investment projects. Starting on September 23, 2013, the SEC allowed platforms to solicit funds directly from accredited investors, lifting a ban on the practice that had existed since 1933.

The main benefactor of this rule change has been the real estate industry. Douglas Ellenoff, a securities lawyer who specializes in crowdfunding, estimates that more than half of the $160 million raised by online crowdfunding platforms in the U.S. since September went into real estate projects. The amount raised offline, for example by developers raising money from neighbors, could be significantly higher.

Rendering 17 John Street RODRIGO NINO

CreateSpace Independent Publishing Platform Hacking Kickstarter, Indiegogo: How to Raise Big Bucks in 30 Days: Secrets to Running a Successful Crowd Funding Campaign on a Budget (Updated November 2013)
Book (CreateSpace Independent Publishing Platform)

Bitcoin oversupply of Thanksgiving turkeys

by what-to-do-Bitcoining

"The website Assassination Market, a crowdfunding service that lets anyone anonymously contribute Bitcoins towards a bounty on the head of any government official–a kind of Kickstarter for political assassinations. According to Assassination Market’s rules, if someone on its hit list is killed, any hitman who can prove he or she was responsible receives the collected funds.
"Sanjuro’s grisly ambitions go beyond raising the funds to bankroll a few political killings. He believes that if Assassination Market can persist and gain enough users, it will eventually enable the assassinations of enough politicians that no one would dare to hold office

Have Crowdfunding Horror Stories Ruined It For Everyone?  — PropertyOfZack
Have you been burned by a crowdfunding campaign? PandoDaily have published an article regarding crowdfunding and the honeymoon period being over both for the platforms and creators. Read the full piece here and a snippet below after the jump.

The Crowd - Crowdfunding Television The Crowd - Crowdfunding Television
Mobile Application (The Crowd - Crowdfunding Television)
  • Big Marketing Exposure, Affordable Perks, Crowdfunding Campagin Promotions, Joint Press Releases
CxO To Go Publishing Kickstarter Power: The Ultimate Crowdfunding Campaign Kit Also for Indiegogo
eBooks (CxO To Go Publishing)
Andrew Alexander The Ultimate Guide to Kickstarter and Indiegogo: Crowdfunding Secrets Revealed
eBooks (Andrew Alexander)
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