In the News – Page 6 – Crowdfunding Professional Association

Crowdfunding Set to Transform How Startups Raise Money

imgres-1 Congress passed a law last year that allows startup companies to raise money directly from investors through online crowdfunding portals.

The only problem is the U.S. Securities and Exchange Commission has not yet released rules to tell the crowdfunding industry how to do that. It’s part of the nitty-gritty details of theJumpstart Our Business Startups, known as JOBS Act, that are still being hashed out even after President Obama signed the bill into law last April.

Today at the Omni Hotel in downtown Austin, a group of about 250 people are meeting for the first ever Crowdfund Texas Conference to learn about this emerging industry.

Building a Case for Crowdfunding

Sherwood Neiss is passionate about entrepreneurship. And he has helped lead the charge to change nearly 80-year-old federal securities laws about investing, so that entrepreneurs can gain access to capital.

Called crowdfunding, the changes will allow small investors to fund start-up businesses, hopefully creating jobs and boosting the economy in the process.

Earlier this month, while Neiss was in Dubai speaking at the Global Entrepreneurship Summit, we emailed him questions. Here are his edited responses.

Making the Case for Crowdfunding: Q&A with Sherwood 'Woodie' Neiss

Sherwood “Woodie” Neiss is passionate about entrepreneurship. And he has helped lead the charge to change nearly 80-year-old federal securities laws about investing, so that entrepreneurs can gain access to capital.

Called crowdfunding, the changes will allow small investors to fund start-up businesses, hopefully creating jobs and boosting the economy in the process.

Earlier this month, while Neiss was in Dubai speaking at the Global Entrepreneurship Summit, we emailed him questions. Here are his edited responses.

Canadian and U.S. Lobby Groups Forge Crowdfunding Alliance

The main organization lobbying to legalize equity crowdfunding in Canada is teaming up with a major U.S. group to bolster its efforts.

Invest CrowdFund Canada (ICC) announced today it is formally partnering with the U.S.-based Crowdfunding Professionals Association (CfPA). The new partnership – referred to as the CfPA/ICC National Canadian Board – will feature CfPA co-chair Sherwood Neiss as well as board members from ICC including ICC national chair Dr. Cindy Gordon and Fawn Annan, president and group publisher at IT World Canada (parent company of ITBusiness.ca). ICC will also represent Canadian crowdfunding legislative interests on the CfPA’s global board.

Investor, Thrillseeker and Entrepreneaur Peter Shankman Opens Crowdfunding Bootcamp

Peter Shankman will be the opening keynote speaker for the Crowdfunding Bootcamp October 9, 2012 at the Ravella in Las Vegas, NV.

Peter Shankman is an entrepreneur, author, speaker, worldwide connector and small business evangelist. Peter is best known for founding Help A Reporter Out, (HARO) which in under a year became the de-facto standard for journalists looking for sources on deadline, offering them sources around the world looking to be quoted in the media. HARO is currently the largest free source repository in the world.

He is also recognized worldwide for initiating new ways of thinking about social media, PR, marketing, advertising, creativity and customer service. To launch an effective Crowdfunding campaign, you must start with a clear message that can be used to attract potential investors. Who better to teach this vital principal than Peter Shankman, the master of “Networking through Social Media.”

You Need the Crowdfunding Bootcamp

Immerse yourself in the best practices of the new regulations for Crowdfund Equity Investing. Be a part of the Crowdfunding Bootcamp(TM)and first annual CFPA Convention to The event takes place on October 9 through October 11, 2012 in Henderson, NV.

This is an innovative conference and bootcamp that bridges the best of a conference with practical hands-on access to lawyers, accountants, social media and PR experts and other resource professionals essential to being able to raise capital using equity based crowdfunding.

Start understanding the intricacies of the compliance requirements as stipulated in the JOBS Act for Crowdfunding while connecting with the world’s most sought-after community of Crowdfund Investing thought leaders, and developers of new and emerging funding portals, and other service providers.

Six Major Crowdfunding Platforms Join Forces with CfPA

Washington, DC — 07/19/2012 — Six crowdfunding platforms and affiliated companies, representing half the board of the National Crowdfunding Association (NLCFA) have left to join forces withCrowdfunding Professional Association(CfPA).

Maurice Lopes, of Early Shares, joined NLCFA’s board early in its inception “I didn’t know there was another organization, until later, particularly one founded by Sherwood Neiss and Jason Best, the chief advocates and crowdfund investing framework authors who I worked with during the fight to legalize crowdfunding.”

Lopes was joined by RennéCaputi (Early Shares), Luan Cox (Crowdnetic) and Sang Lee (Return on Exchange). They all play an active role in the crowdfunding industry and work closely with CfPA’s sister organization the Crowdfund Intermediary Regulatory Advocates (CFIRA).

“Both myself and Renné decided that our efforts would be better on the board of the CfPA” said Lopes. “In recent weeks, we tried very hard to unify both associations and establish a single voice, but it was clear that wasn’t going to happen without NLCFA’s Founder David Marlett changing roles. This seemed an impossible task, so we decided to resign.”

Neiss, co-chair of CfPA said, “Having worked with these crowdfunding advocates across association lines, we were thrilled when they mentioned the thought of merging the two organizations. While they couldn’t make that happen, having them on board allows us to speak with a more powerful collective voice. We are happy they see value in being part of the organization that has the support of Washington, DC.”

“Our priorities are education, advocacy and awareness” says Neiss. “In my opinion, the CfPA and CFRIA are more engaged in the process and investor and policy maker collaboration and education. That is the kind or organization I want to be a part of.”

About Crowdfunding Professional(CfPA)
The Crowdfunding Professional Association is dedicated to facilitating a vibrant, credible and growing crowdfunding community while also advocating for an industry view versus a single company perspective. Uniting a broad-based coalition of industry participants, the association is committed to ensuring the credible development of the industry, including a commitment to the highest ethical standards. The association’s collaborations and insights are shared broadly to avoid onerous, stifling bureaucracy that can endanger innovation, idea generation and job creation. For more information visit www.crowdfundingprofessional.org

Media relations contact: Joy Schoffler, 512-271-9489 ext. 7

Take Survey: How Much Do You Know About Crowdfunding Investing?

How much do you know about crowdfunding?

The Crowdfunding Professional Association is asking entrepreneurs, investors, intermediaries and crowdfunding portals to take a survey to see how much they know about — or understand — the upcoming changes for crowdfunding provided under theJumpstart Our Business Startups Act. The JOBS Act will enable businesses to seek up to to $ 1 million in equity per year from small investors through online crowdfunding portals. The Act requires the Securities and Exchange Commission to implement regulations that will govern crowdfunding by December 31, 2012.

The purpose behind the survey is to find out what businesses and individuals really know or understand about crowdfunding, what they find most exciting about crowdfunding, and how they plan to take advantage of crowdfunding once the SEC implements the rules for such investments. The CfPA plans to award an Apple(R) iPad 3 to one of the first 500 individuals who respond to the survey. The winner will be randomly selected.

Take the Survey

Image (c) Crestock

Crowdfunding Pioneers Launch Professional Association in Concert with Regulatory Advocacy Group

Sister organizations dedicated to representing rapidly developing Crowdfunding industry and supporting SEC, FINRA during rule making period post JOBS act

New York City, May 7, 2012 – A group of top debt and equity crowdfunding platform and industry experts today announced the creation of the Crowdfunding Professional Association (CfPA), which will operate as a complementary sister entity to the Crowdfund Intermediary Regulatory Advocates (CFIRA) organization. Both non-profit organizations have been formed as a result of the Jumpstart Our Business Startups (JOBS) Act, which was signed into law on April 5th. By creating a legal framework for “crowdfund investing,” this historic act unleashes the potential for a much larger and expanded global crowdfunding community. The goal of the Crowdfunding Professional Association is to facilitate a vibrant, credible and growing global crowdfunding community while advocating for an industry view versus personal interests or a single company perspective. The complementary CFIRA organization is focused exclusively on channeling industry expertise to support the Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other affected governmental and quasi-governmental entities, including state regulators, in the establishment of industry regulation, standards and best practices.

“Having worked over the past two years in developing the framework and foundational elements of the acts that passed both houses of Congress and ultimately the JOBS act signed by our president, I am thrilled to join with a broad coalition of crowd pioneers in the creation of a truly crowd-sourced professional association,” said Sherwood Neiss, co-author of the CrowdFund Investing Framework in the JOBS Act, co-founder of Startup Exemption and a founding member of the leadership group behind both non-profit crowdfunding sister entities. “In addition to its formation, we are announcing the appointment of the association’s first executive committee chair, and a governance structure and founding team. As challenging as it was to enact this law, we as industry participants recognize that the difficulties in developing the industry have only begun and that we must collaborate to ensure that crowdfunding is both preserved and developed to achieve its maximum potential in terms of credibility, transparency and best practices.”

Berkeley Geddes, CEO of Grow America Insight and DooBizz.com, has been elected chair of the Crowdfunding Professional Association Executive Committee and Governance Board. The Crowdfunding Professional Association’s Executive Committee will work closely with Mr. Geddes to build a lasting network and organization that will provide advocacy, foster integrity and champion the burgeoning global crowdfunding industry and vast ecosystem. For more information on the governance structure visit http://crowdfundingprofessional.org/leadership/

“America needs to get this right,” said Mr. Geddes. “As a nation, we need to lead and restore our seed funding markets in support of good people with good ideas, chasing their dreams. As members of the crowd, we can build a powerful and credible crowdfunding coalition that fuels the creation of new ideas, new businesses and jobs. We look forward to supporting the evolution of this community and harnessing the experts, entrepreneurs, pioneering platforms and visionary investors across the globe.”

The Crowdfunding Professional Association’s core principles are designed to achieve the following objectives:

Establish the highest ethical industry standards to ensure the successful expansion of the crowdfunding industry
Develop broad crowdfunding training and certification programs to solidify the implementation of necessary ethical standards and practices
Create ongoing industry trade show summits, symposiums and sub committees to further develop an ecosystem of industry experts, best practices, and leadership and mentoring opportunities
Represent the industry through media and government relations to ensure major thought leaders understand and have access to the fundamental industry facts/research, crowdfunding experts and platform leaders

“We welcome the creation of this industry body, which we view as strategic to not only fostering new forms of crowdfunding investments, but also to preserving the unique innovations and progress achieved by the early adopters and founders of the industry,” said Brian Meece, co-founder and CEO RocketHub. “Having an organization that represents the industry is essential and we look forward to supporting the efforts of the Crowdfunding Professional Association and the development of this vital industry.”

For a complete overview of membership, leadership and sponsorship opportunities visit http://crowdfundingprofessional.org/join/. Basic membership is free for the first year.
“Crowdfunding’s promise for igniting new, early-stage ventures is revolutionary,” said Alan E. Hall, a founding sponsor of the Crowdfunding Professional Association and founder of Grow America SpringBoard and Mercato Partners. “We look forward to supporting this groundbreaking development through the Crowdfunding Professional Association. It is our desire to help drive and mold this new capital creation model from its very foundation to ensure that it develops efficiently and safely. Managed properly, crowdfunding can fuel the involvement of hundreds of thousands of additional entrepreneurs, and allow many more investors to participate in the creation of companies and jobs that our economy so desperately needs.”

“We look forward to coordinating our efforts with the Crowdfunding Professional Association and are committed to complementing their mission with our laser focus on ensuring that a crowdfunding investment framework thrives in the U.S. so entrepreneurs can innovate and create new jobs,” said Candace Klein, co-chair of CFIRA and founder and CEO of Bad Girl Ventures and SoMoLend. “During this critical 270-day rule-making period and beyond, we will serve as a voice of the industry with the appropriate regulators and provide continuing regulatory education to the industry. CFIRA and CfPA will closely collaborate to make this happen.”

“Fostering the adoption of best practices for the operation of crowdfunding platforms globally is essential to the success of our industry,” said Carl Esposti, founder of Crowdsourcing.org and leader of the CAPS Accreditation Program for crowdfunding platforms and a founding Crowdfunding Professional Association executive committee member. “The Crowdfunding Professional Association is a critical piece of the puzzle and central to establishing accessible Crowdfunding Accreditation for Platform Standards, which is why I’ve worked to support the creation of this association and am pleased to serve on the executive committee.”

“Over the past year, we have hosted crowdfunding summits around the world to raise awareness, share best practices and to foster a coalition of crowdfunding industry participants,” said David Drake, Co-Founder of The SoHo Loft Capital Creation Events and a founding member of the leadership group behind both non-profit crowdfunding sister entities. “We are delighted to be a part of the formation and launch of the Crowdfunding Professional Association and view its function as central to the success of our industry.”

“As a founding supporter of the Crowdfunding Professional Association, our law firm is committed to not only establishing a thriving industry association, but also 100 percent behind this innovative new capital creation model,” said Daniel DeWolf, Co-Chair of the Venture Capital and Emerging Companies practice group of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. “We look forward to helping build a strong foundation for the industry and its varied ecosystem of participants.”

“The potential applications of crowdfunding are just beginning to break the surface,” said Steve Cinelli, Chief Executive Officer of PRIMARQ and a founding Crowdfunding Professional Association executive committee member. “Real Estate equity share finance empowered by crowdfunding platforms is emblematic of the diversity of this industry. Whether crowdfund investing in companies, participating in real estate price movement or other alternative asset classes, the Crowdfunding Professional Association will play an important role in addressing capital formation in key segments of economies both at home and abroad.”

About Crowdfunding Professional Association

The Crowdfunding Professional Association is dedicated to facilitating a vibrant, credible and growing crowdfunding community while also advocating for an industry view versus a single company perspective. Uniting a broad-based coalition of industry participants, the association is committed to ensuring the credible development of the industry, including a commitment to the highest ethical standards. The association’s collaborations and insights are shared broadly to avoid onerous, stifling bureaucracy that can endanger innovation, idea generation and job creation. For more information visit www.crowdfundingprofessional.org.

About CFIRA

Crowdfund Intermediary Regulatory Advocates, or CFIRA, was established following the signing of the Jumpstart Our Business Startups (JOBS) Act. CFIRA is an organization formed by the crowdfunding industry’s leading platforms and experts. The group will work with the Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other affected governmental and quasi-governmental entities to help establish industry standards and best practices. For more information, visit www.CFIRA.org.

New Research Shows Optimism For Crowdfund Investing Continues To Rise

This week the Crowdfunding Professional Association (www.crowdfundingprofessional.org) in conjunction with the co-founders of Crowdfund Capital Advisors, Sherwood Neiss, Jason Best and Zak Cassady-Dorion, are releasing additional information based on a comprehensive survey of 442 entrepreneurs, investors, and intermediaries about their interest in Crowdfund investing as the enactment of the JOBS Act, signed April 5, 2011, allows for equity based crowdfunding in the United States beginning in 2013.

This means a business could raise up to $1 million per 12-month period from both accredited and nonaccredited investors over the Internet or through family, friends and business contacts. It will allow average investors to access the same kind of high-growth investments once available for only the wealthy. For entrepreneurs, it provides a highly valuable feedback mechanism on prospective offerings while allowing them to access capital much more readily than traditional vehicles including SBA loans, VCs and Angel investors.