Podcasts about jumpstart our business startups act

A debate over the definition of an accredited investor is underway ahead of an SEC meeting that could make it tougher to quality. The SEC Chairman is reportedly in favor of making the definition more restrictive, and that's raising concerns among lawmakers, financial scholars and business startups who feel that opportunities for investing should be expanded, not diminished. (1)   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   What is an Accredited Investor?   If you've been wanting to invest in a private placement, such as an apartment or storage syndication, but haven't yet met the requirements of an accredited investor, you may be feeling the frustration. The SEC requires an individual to earn at least $200,000 a year as an individual, $300,000 a year as a couple, or a networth of $1,000,000 or more which excludes the value of a primary residence.   Accredited vs. Sophisticated   The SEC does allow a small number of non-accredited investors in certain private placements - 35 to be exact. And though they may not be accredited, they do have to be "sophisticated."  Investopedia defines a sophisticated investor as someone “with sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.” (2)(3) That knowledge or experience would need to be obvious to the private placement sponsor or syndicator. That could include an employee with knowledge about investing opportunities, risks, and the deal itself.   The sophisticated investor designation is allowed in a 506(b) offering under Regulation D - but again only 35 "sophisticated" investors are allowed, and they must have a pre-existing relationship with the sponsor. The Jumpstart Our Business Startups Act, or JOBS Act, of 2012 allowed investors with no prior existing relationship to participate in a private placements for the first time through a new category called 506(c). This allows syndicators and fund managers to market their offerings to the public, but does not allow non-accredited sophisticated investors. Only accredited investors are allowed in a private placement that advertises publicly.   Support for Less Restrictive Definition   At a House hearing on what the SEC is currently planning to do, Committee Chairwoman Rep. Ann Wagner said: “It is no secret that SEC Chairman Gary Gensler's agenda includes sweeping new regulations in our private markets that would create barriers for investors and entrepreneurs to participate in those markets.”   An article in The DI Wire says notes on the SEC's agenda show that Gensler plans to change “the accredited investor definition by increasing the annual income and net worth thresholds.” The SEC began soliciting public comments on potential changes last year to “update the rules” and “more effectively promote investor protection.” (4)   Representative Brad Sherman that the current definition doesn't make sense and needs reform. He says: “That doesn't mean it should be more restrictive or less restrictive than what we have now, but it should be different.”   Is the Current Accredited Investor Definition Unfair?   Director of Financial Regulation Studies at the Cato Institute, Jennifer Schulp, was more critical. She testified that the accredited investor definition is “unfair” and objected to the idea that the SEC decides “who gets to invest where: public markets for most, but public and private markets for those it judges to be worthy.”   She says: “Such paternalism – limiting how people can invest their money – is objectionable in itself. The SEC should not be charged with protecting individuals from their choices to take certain kinds of financial risk.” She highlighted the fact that in 2010, the SEC “shrank” the pool of accredited investors by adding a clause to the Dodd-Frank Act that excludes the value of a person's primary home.   Proposed Certification Exam   Chairman of the House Financial Services Committee, Rep. Patrick McHenry, had introduced the Equal Opportunity for All Investors Act. It calls for the SEC to offer an accredited investor certification exam for people with investment knowledge and experience. He said during the hearing that he looks forward to moving ahead with legislative proposals that would improve the accredited investor definition. (5)   Meantime, the SEC rulemaking session is scheduled for April.   You can read more about the evolution of this issue by following links in the show notes at newsforinvestors.com. If you'd like to learn more about the private placement deals that we offer at RealWealth, please go to GrowDevelopments.com. We are currently offering a North Dallas Rental Fund for people who want to leave the landlording and property management to someone else, but would like the financial benefits of owning rental property. However, this deal is only available to accredited investors who fit the current definition. Please hit the join button at the RealWealth home page for access to all our news and data on the U.S. real estate market. And don't forget to subscribe to the podcast and follow me on instagram @kathyfettke for real estate market updates and commentary.   Thanks for listening!    Links:   1 - https://thediwire.com/house-hearing-debates-changes-to-the-secs-definition-of-accredited-investor/   2 - https://www.investopedia.com/terms/s/sophisticatedinvestor.asp   3 - https://thediwire.com/sec-expands-definition-of-accredited-investor/   4 - https://thediwire.com/sec-signals-changes-to-accredited-investor-definition/   5 - https://www.thinkadvisor.com/2023/02/08/lawmakers-grapple-with-accredited-investor-definition/

The 2,000 Investor Limit is a stipulation required by the Securities & Exchange Commission that mandates a company that exceeds 2,000 individual investors. With more than $10 million in combined assets, it must file its financials with the commission.1 According to SEC rules, a company that meets these criteria has 120 days to file following its fiscal year's end.The 2,000 investor limit or rule is a key threshold for private businesses that do not wish to disclose financial information for public consumption. Congress raised the limit from 500 individual investors in 2016 as part of the Jumpstart Our Business Startups Act and Title LXXXV of the Fixing America's Surface Transportation Act. The revised rules also specify a limit of 500 persons who have not accredited investors before public filing is required.2The prior threshold had been 500 holders of record without regard to accredited investor status. Congress began debating an increase in the limit in the wake of the 2008 recession and an explosion in online businesses.

Harold Hughes, Founder & CEO of Bandwagon, discusses utilizing blockchain for security and personalization in event ticketing, data-transparency, his key to entrepreneurship, the importance of investment firms funding underrepresented groups, and speaking to the SEC. This episode of Giant Robots is sponsored by: PricingWire: Monetization & Pricing Strategy for Software & Technology Innovators Links & Show Notes Bandwagon Facebook Pixel Founder Institute Accelerator PayPal Mafia Arlan Hamilton - Backstage Capital Story Backstage Capital Small Business Week JOBS Act Aura Harold on Twitter See open positions at thoughtbot! Become a Sponsor of Giant Robots!

Who is Gabrielle Katsnelson?     Gabrielle Katsnelson is co-founder and Chief Operating Officer of SMBX. She has a decade of financial accounting, strategy, and operations experience; including: managing the loan portfolio of the Artists Community Federal Credit Union; the restricted royalty funds of TuneCore, a digital distributor of music; and architecting financial infrastructure for countless startups and SMBs.       Dedicated to creating a surplus ecosystem, Gabrielle believes that giving SMBs access to capital while creating an engaging and empowering investing experience for people is the means.        Show Highlights  Terri and Gaby talk about how they met at a Draper University blockchain pitch day and gravitated towards each other over common interests  Gaby shared her journey from accounting into biotech in New York and ultimately into FinTech in San Francisco in early 2017  Gaby met her co-founder of SMBX at one of the crypto, blockchain and ICO meetups she went to; he was always asking the interesting questions.   Their company, SMBX is built on a private Etherium network and takes advantage of Title III of the JOBS Act to help small businesses issue bonds so that investors can invest in businesses they are interested in providing a secondary market for investors.    Gaby and Terri talk about where blockchain is from a maturity perspective and the future of blockchain.   Gaby explains equity crowdfunding and the differences between Title II, Title III and Title IV. Terri and Gaby talk about using crowdfunding to democratize funding and how we are still in early days.    If Gaby could wave a magic wand to change something in this world, she would change mindset and personal responsibility for your own mindset.      Terri’s Key Takeaway  It is important to maintain a sense of fun.  It doesn’t have to be so serious all of the time.      References in the Podcast  SMBX: https://www.thesmbx.com/  Jane VC:  https://www.janevc.com/  OwnYourCash:  http://site-1317096-1533-8422.strikingly.com/  Skydeck: https://skydeck.berkeley.edu/  Wilson Sonsini (WSGR):  https://www.wsgr.com/WSGR/Default.aspx  Draper University: https://www.draperuniversity.com/  Fred Wilson’s blog post on blockchain infrastructure:  https://avc.com/2018/10/the-appsinfrastructureappsinfrastructure-cycle/  JOBS Act:  https://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act  JOBS Act Title III:  http://www.finra.org/investors/alerts/crowdfunding-and-jobs-act-what-investors-should-know  Terri’s Medium post on blockchain, crypto and ICO resources:  https://medium.com/@terrihansonmead/cryptocurrency-and-ico-resources-55766cae29e  Crowdfund Main Street: https://crowdfundmainstreet.com/  Republic: https://republic.co/  WeFundr: https://wefunder.com/discuss  SeedInvest: https://www.seedinvest.com/  Investibule:  https://investibule.co/  FinTech Collective:  http://www.fintech.io/      Contact  Gabrielle can be reached via email gabrielle@thesmbx.com; Twitter: @gabykatsnelson and through LinkedIn: https://www.linkedin.com/in/gabrielle-katsnelson-6a73958/.  You can follow Terri on Twitter at @terrihansonmead or go to her website at www.terrihansonmead.com or on Medium:  https://medium.com/@terrihansonmead.   Feel free to email Terri at PilotingYourLife@gmail.com.  To continue the conversation, go to Twitter at @PilotingLife and use hashtag #PilotingYourLife. 

The 2012 Jumpstart Our Business Startups Act (the JOBS Act) was designed to reduce the regulatory burden on entrepreneurs seeking to raise capital to launch or grow their business. It improved the regulatory environment for private offerings and Regulation A offerings, reduced the burden on newly public “Emerging Growth Companies” and permitted crowdfunding. But the law contained serious flaws that seriously reduce its effectiveness.Please join us for a discussion of the impact of the JOBS Act, its flaws, and how to fix those flaws. See acast.com/privacy for privacy and opt-out information.

The Jumpstart Our Business Startups Act, or JOBS Act, will be celebrating its fifth anniversary in April. When it was passed in 2012, the hopes were that streamlining the financial disclosure process and opening crowd funding platforms for capital raising would encourage more companies to go public. The Financial Executives Research Foundation, in partnership with Donnelly Financial Solutions, is working on a research project focusing on the Jobs Act and the impact on Emerging Growth Companies born out of the legislation. In this issue of the podcast, we speak with Joseph Hall, a partner at the law firm of Davis Polk. Mr. Hall is head of the firm's corporate governance practice and is a former Managing Executive for Policy at the U.S Securities and Exchange Commission. Today, he often advises companies on the disclosure relief embedded in the Jobs Act. Special Guest: Joseph Hall.

EQUITY CROWDFUNDING - SEATTLEThe JOBS Act signed into law in April 2012 contained a provision called “Jumpstart Our Business Startups Act”.  Title III-Crowdfunding amends the Securities Act of 1933.  Julius Brecht specializes in securities law and is the special guest.  Questions or comments email David@GDTB.Biz. in the newsSMALL BUSINESS CONFIDENCE EDGES UP, EVER SO SLIGHTLYMAIN STREET STILL CAUTIOUS ABOUT THE FUTUREWASHINGTON, February 11, 2014- Small business optimism started the year slightly up from December at 94.1 but well below the pre-recession average of 100, according to the National Federation of Independent Business’ (NFIB’s) latest index.  The Getting Down to Business® Facebook page will contain a link to this and other related articles

The JOBS Act signed into law in April 2012 contained a provision called “Jumpstart Our Business Startups Act”.  Title III-Crowdfunding amends the Securities Act of 1933.  Julius Brecht specializes in securities law and is the special guest.  Questions or comments email David@GDTB.Biz. EMPIRE OF WEALTH Does it bother you when people talk about Americas shameful past while extolling the vision of Europe?  The Credit Mobilier of America scandal was a low point in American business and politics, but nobody died unlike European history which is littered with the bodies of its victims.  Questions or comments email David@GDTB.Biz. in the newsSMALL BUSINESS CONFIDENCE EDGES UP, EVER SO SLIGHTLYMAIN STREET STILL CAUTIOUS ABOUT THE FUTUREWASHINGTON, February 11, 2014- Small business optimism started the year slightly up from December at 94.1 but well below the pre-recession average of 100, according to the National Federation of Independent Business’ (NFIB’s) latest index.  The Getting Down to Business® Facebook page will contain a link to this and other related articles BUSINESS RISK MANAGEMENTLearn how to control your insurance costs with these great tips from Chris Pobieglo our business risk management expert.  Questions or comments email Chris@businessinsuranceassociates.com

Thanks to the Internet and social media, we can now ask "the crowd" for help. Companies and individuals increasingly approach the crowd for creative solutions to social or business problems (crowdsourcing) or for financing a project, venture or cause (crowdfunding). At a roundtable discussion in July 2012, participants addressed key questions on the use, impact, and regulation of crowdfunding, specifically through the sale of debt or equity as a mechanism for raising capital. The event was hosted by the Milken Institute's Center for Financial Markets, in partnership with the Georgetown University Law Center, in Washington, D.C. The purpose was to help inform the public and the Securities and Exchange Commission's rulemaking process in advance of the SEC's December 31, 2012, deadline for issuing final rules and regulations implementing Title III of the Jumpstart Our Business Startups Act. The JOBS Act, signed into law in April 2012, creates a crowdfunding exemption to current securities laws and registration requirements. Roundtable participants explored creative uses and applications of securities crowdfunding, considered the limits and leading criticisms of the new exemption, and worked through different regulatory approaches that could help to unlock the promise of this new capital-raising mechanism, while minimizing the possibility of fraud and abuse. Although views diverged on the degree to which the SEC should regulate issuers and crowdfunding platforms, participants agreed that the final regulatory regime should not stifle the exemption's potential to create jobs and spur economic growth. What remains to be seen, however, is whether crowdfunding will mark a major turning point in an ongoing democratization of financial markets, or whether the benefits of the exemption will be muted by regulatory burdens, concerns about fraud, high startup failure rates, and lack of investor and issuer sophistication.