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   Technology StocksEquity Crowdfunding


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To: Thehammer who wrote (2)1/28/2018 10:58:37 PM
From: Glenn Petersen
   of 37
 
I have had an avid interest in crowdfunding for a long time. Severa1 years ago, I almost started a board on SI to discuss the subject, but decided that there would not be enough interest. I still have 60 articles from 2012 (all now stale) in four SI file folders. I thought that the passage and implementation of the JOBS Act might stimulate more offerings, but the SEC regulations make it a difficult and expensive process for sma1l businesses.

The initial coin offerings are crowdfunding on steroids. If the SEC were to loosen their regulations, there would be a od of equity ICOs. The numerous crypto exchanges that have been popping up would undoubtedly make a secondary market in the tokens, just as they do now for the utility tokens. I changed the name and header of the Fintech board in the hopes of stimulating some discussion of the ICOs. So far, no luck.

If you start a board devoted to equity crowdfunding, I will contribute.


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To: Glenn Petersen who wrote (4)1/28/2018 11:32:38 PM
From: Thehammer
   of 37
 
I admit that I have not really looked very closely at ICO's but Start Engine has several listed in their offerings. I have bee asleep at the switch as far as equity crowdfunding goes. Wasn't really aware of it until recently.

I was on a webinar with Howard Marks the founder and CEO of Start Engine and was impressed with his vision and were he wants to go with the platform. I may shoot him a few more questions that were highlighted in your original article.It will include trading of the companies offered. They also can help with the marketing and expenses. I recall that the level of cash that you seek to raise differentiates how much diligence the company must undergo.

I worked in the Financial Services for many years and crowdfunding can fill a gap for companies seeking to raise capital. U expect that the limits were set so low because of all the past abuses in the IPO market perpetrated on investors.

Most of my investments are conservative, but even though I am retired my income exceeds my needs and seek some more "speculative investments". My interests mainly align with trying to filter some of the choices and understanding the viability of the concept / business model and the experience / quality of the leadership team.

Since you already have the SI site set up, not sure that we need to create another. I would think there would be more interest on SI especially if it stays somewhat generic and not company specific. Biotech gets a lot of interest / traffic on SI and attracts some real professionals and experts (i.e. PHD's). I am happy to help.

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To: Thehammer who wrote (5)1/28/2018 11:57:25 PM
From: Glenn Petersen
   of 37
 
The Equity Crowdfunding board was actually set up by more100, who has not posted on SI for seven months. I suspect that SI Ron would gladly turn it over to you if you asked. After all, it only has two Bookmarks, probably you and me. Or, you could start a new board, which would generate a fresh set of eyeballs. Either way, I would be happy to help you spread the word. Crowdfunding has enormous potential for small businesses. It is frustrating that our government feels compelled to overly protect its citizens from risk.

Equity crowdfunding - assuming that the SEC does not loosen the ICO regulations - is currently a small niche; the article I posted mentioned $38 million in 142 deals. I was really disappointed when I saw those numbers.

I spent some time on the Start Engine website and have some thoughts - all positive. Give me a few days to organize them

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To: Glenn Petersen who wrote (6)1/29/2018 12:28:57 AM
From: Thehammer
   of 37
 
Sorry Glenn, somehow thought that you started the thread but see now that it was more100. I am getting the impression that the concept is gaining momentum. Start Engine has started an index and that might be something to post periodically.

I did review some of the info on SEC.gov.: sec.gov

From working in the business so long, there are all sorts of opportunities for fraud and I guess that is what the SEC is guarding against. Also the majority of investors are non accredited and many can't afford to lose money but I guess some of them buy lottery tickets and cigarettes.

All of the job growth in this country comes from small and medium sized business (who often are suppliers to big business). I think the concept coincides with prosperity. Very few startups find VC or angels and often have a difficult time with bank funding.

Looking forward to your comments. When i find something of interest, I will post it.

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From: Thehammer1/30/2018 11:50:06 AM
   of 37
 
Interesting article on ICO's on SA:

The SEC Declares War On ICOs

Summary:
The SEC is now contributing "a significant portion of its resources to the ICO market." The primary targets of opportunity will be the major Exchanges.

The ICO market is too underdeveloped to survive the resulting liquidity crisis. Many (if not most) ICO funded projects are going to zero overnight.

Investors can expect coordinated, global action against trading platforms, companies and individuals.

BRIDLE projects (Bitcoin, Ripple, Iota, Dash, Litecoin, and Ethereum) will likely NOT be targeted.

"Pride goeth before destruction, and an haughty spirit before a fall."

- Proverbs 16:18

"We're in line for some serious regulatory responses to all of this and that will be forthcoming after the first of the year."

more: seekingalpha.com

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From: Thehammer2/3/2018 11:30:18 PM
1 Recommendation   of 37
 


Overview of regs regarding crowd funding

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From: Glenn Petersen2/4/2018 11:38:59 AM
   of 37
 
A blockchain-based startup looks to disrupt the traditional crowdfunding platforms such as Kickstarter and Indiegogo:

“By funding through an ICO, and utilizing the Ethereum Blockchain, the Acorn Collective will eradicate the traditional three to five percent transaction fees and five percent platforms fees normally associated with other crowdfunding platforms, such as Kickstarter and Indiegogo,” the Acorn white paper states.

Message 31470138

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To: Glenn Petersen who wrote (10)2/4/2018 2:30:38 PM
From: Thehammer
   of 37
 
I am skeptical on a couple of fronts and foremost would be their ability to prevent fraud. I worked in securities for 30 years and scam proliferate to separate people from their money. Many of the security laws were established to prevent fraud because it was so rampant. I been watching quite a few videos on the ICO market as well as equity crowdfunding and there are legal hurdles as well as accounting hurdles. The costs do seem excessive now though from the corporation's perspective.

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To: Thehammer who wrote (11)2/4/2018 4:02:22 PM
From: Glenn Petersen
   of 37
 
Two things need to happen if the ICO market is going to thrive on a long-term basis:

1) There needs to be regulations in place addressing the issue of fraud in the sale of utility tokens. Theoretically, the sale of equity tokens is already covered by existing SEC regulations.

2) Secondly, there is a need for credible exchanges to evolve that will sponsor and vet ICOs and hold them to a minimum level of standards, similar to what Kickstarter and Indiegogo are currently do for crowdfunding campaigns. It is my understanding that Indiegogo will be holding it first ICO this month. Kickstarter currently has no plans for an ICO.


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To: Glenn Petersen who wrote (12)2/4/2018 5:47:19 PM
From: Thehammer
   of 37
 
I agree Glenn but that is where I doubted they could drive out costs, have an international platform and charge next to nothing. I watched a 6.5 hour conference that Start Engine put on and was amazed that so many folks didn't understand the potential regulations they could run afoul. There were attorneys aplenty there and they kept referring back to existing laws. I am seeing a lot of practices that would not be allowed at major financial institutions and most of the people investing seem to be unaccredited so not sure they understand the risk.

It sounds really cool to drive down cost for firms that go public that are "hot" but for every "hot" underwriting there are 10 that fail to attract interest. I think this can be huge but w/o significant oversight and controls not sure how that happens in platforms like the one posted (forget name). Maybe they can solve most of those problems via Blockchain technology but I doubt that we are close to having all significant players up to speed.

This solves a whole host of problems but potentially creates others. Undoubtedly there will be opportunity there to create solutions. I am investing with monopoly money for the time being just to get a feel for how downstream activities will work. For instance, I can buy stocks in my account and every company will be held in s/n and reporting will occur for everything collectively. That is not how it will work with ICOs as I understand. Every investment will live on its own and each will communicate directly to me.

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