Category Archives: investing

New Crowdfunding Portal SBMX Offers Small Business Bonds

At Locavesting, we’ve always thought the best use of Regulation Crowdfunding was helping individuals invest in local businesses. Rather than buying stock (or SAFEs) in speculative tech startups, we believed that lending money to established small businesses would become a mainstream option. Lately, that’s looking more likely, as new funding platforms emerge that cater to […]

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Regulation Crowdfunding Turns Three!

Regulation Crowdfunding, the law that ushered in mainstream crowdinvesting, turns three today. And while it might not be growing by audacious leaps and bounds, it’s not a slacker, by any means. Regulation Crowdfunding, a centerpiece of the 2012 JOBS Act also known as Title III, allows small businesses and startups to raise up to $1.07 […]

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Crowdfunding Portal Mainvest is on a Hyperlocal Mission in Massachusetts

More than $2.7 billion in venture capital flowed into Massachusetts in the first quarter, according to the latest PriceWaterhouseCoopers survey. Yet pretty much none of that went to the kind of local businesses that anchor neighborhoods—the restaurants, cafes, yoga studios and breweries. Fortunately, those mom & pops have another option, thanks to Mainvest, an investment […]

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Why Low Minimum Funding Targets Hurt Investment Crowdfunding

Many businesses raising money under Title III of the JOBS Act are setting “target amounts” as low as $10,000. I understand the motivation, but I’d urge issuers and the platforms to think twice. Background In Title III Crowdfunding (also known as “Regulation Crowdfunding” or “Regulation CF” or simply “Reg CF”), the business (known as the […]

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Behold the DUSTO. A Guide to Crowd Investing Acronyms.

In the beginning, there was common stock—thanks for your money, here’s your certificate. Fast forward to the age of tech startups and gushers of digital coin offerings and things get a little more complex. Enter SAFES and ICOs. Now those terms sound almost quaint as the crowdfunding and fintech worlds dream up new twists on […]

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Behold the DUSTO. A Guide to Crowd Investing Acronyms.

In the beginning, there was common stock—thanks for your money, here’s your certificate. Fast forward to the age of tech startups and gushers of digital coin offerings and things get a little more complex. Enter SAFES and ICOs. Now those terms sound almost quaint as the crowdfunding and fintech worlds dream up new twists on […]

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Debt-based Crowdfunding Is Quietly Generating Investor Returns

Crowdfunding success is often measured by the number of campaigns meeting their funding targets and the dollars raised. But what about the investor side of the equation? It’s still very early, and there are no industry-wide performance metrics that measure investor returns. However, some investment crowdfunding portals have lately taken to reporting their Internal Rate […]

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Women Founders Are Benefiting From Crowdfunding, but Where are the Women Investors?

Investment crowdfunding is beginning to fulfill its promise of democratizing investment and access to capital. While women entrepreneurs are still outnumbered by men on most crowdfunding sites, their ranks are steadily growing. At Republic, a Regulation Crowdfunding portal that emphasizes women-owned ventures, 8 out of 13 businesses currently raising capital are women-owned. And on investibule, […]

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Colorado’s Intrastate Crowdfunding Law Begins to Take Hold

Colorado is a hotbed of entrepreneurship, with a vibrant mix of startups creating everything from natural food brands to financial tech. So it’s been puzzling to see the state’s crowdfunding efforts take so long to gain traction. The Colorado Crowdfunding Act was passed in March 2015 and went into effect August 2015. It allows local […]

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For Real Estate Lender Groundfloor, It’s Slow and Steady and Open to All

Real estate has been one of the hottest areas of crowdfunding, although most of it is focused on wealthy “accredited” investors who put money into funds, known as REITs. (And let’s face it, accredited investors don’t lack investment options!) Just two platforms allow direct investing by unaccredited investors. One is Pittsburgh-based Small Change, which uses […]

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