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No rush on companies using ‘crowdfunding’

by Chris Newmarker for finance-commerce.com

The U.S. Securities and Exchange Commission appears to be in no hurry when it comes to creating a framework for a business to assemble a bunch of small donations from numerous donors over the Internet – a practice called “crowdfunding” that is already widely employed by nonprofits and artists.

Jeffrey Robbins, an entrepreneurial law expert at Messerli & Kramer, recently returned to the Twin Cities from the annual Securities Regulation Institute near San Diego.

Generally, SEC staff at the gathering will promote soon-to-be-released rules from the agency, Robbins said.  Not so with crowdfunding, even though the 2012 Jumpstart Our Business Startups Act tasks the SEC with setting up mechanisms for businesses to raise up to $1 million annually from the practice.

For now the SEC is “reminding issuers that any offers or sales of securities purporting to rely on the crowdfunding exemption would be unlawful under the federal securities laws.”

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Jason Best – All About Crowd Funding – Interview

Jason Best – All About Crowd Funding – Interview – Goldstein on Gelt

Jason Best and Sherwood Neiss are the owners of Crowdfund Capital Advisors (CCA). Find out what crowdfunding is and how it could help your business on this great show. “Goldstein on Gelt” is a global investment and financial planning radio show designed to educate and entertain its listeners with financial strategies and investment tips. Investment advisor Douglas Goldstein hosts the weekly show and is the director of Profile Investment Services, Ltd., www.profile-financial.com.

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P&G Taps Crowdfunding Site to Scout for Startup Brands

By John Tozzi for Businessweek

For small companies selling consumer products such as makeup or snack food, a partnership with a big multinational company can mean the difference between obscurity and becoming a household name. How does a small brand get a behemoth’s attention?

CircleUp, a crowdfunding website that connects startup consumer brands with investors, wants to be part of the answer. Today, the company announced a partnership with Procter & Gamble (PG) to get companies on CircleUp in front of P&G executives scouting for new brands. It made a similar deal with General Mills (GIS)last year.

Most companies on CircleUp have $1 million to $10 million in yearly sales and are trying to raise about $1 million from wealthy individual investors, says Chief Executive Ryan Caldbeck, a former private-equity investor. Since opening its doors last April, CircleUp has helped eight companies close funding deals. In addition to connecting young companies with investors, CircleUp wants to expose them to multinationals that could lead to partnerships or acquisitions, he says.

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