Equity Crowdfunding : New Regulations Create Improved Opportunity for Pre-Revenue Startups

Most entrepreneurs have heard of KickStarter and IndieGoGo or perhaps GoFund Me. These are rewards-based and donation-based crowdfunding vehicles, but with a CAGR of 33.9% (Ernst and Young), equity crowdfunding is the fastest growing segment of the overall crowdfunding market. In the US , this segment was created by the 2012  JOBS Act and after 3 years of SEC rule-making, began growing  in 2015.  Of the $17.2 billion in crowdfunding raised in the US (42% of the global market), approximately $367 million is equity crowdfunding.  The SEC’s November 2020 expansion of eligible investors and an increase from $1 million to $5 million in the amount which can be raised dramatically improves options for pre-revenue startups. This seminar explores equity crowdfunding as an alternative to shrinking venture capital seed investment and reduced first sequence financing by angel investors for pre-revenue ventures.

Speaker Bio:

Brenda Lewis is the owner of Transactions Marketing, Inc. (TMI), a 39-year-old venture management firm focused on the launch and funding of enterprise mission critical software, systems and services. TMI owns and operates TechXel Stamford (https://techxelstamford.com/), a B2B tech accelerator. Prior to starting TMI, Brenda spent 15 years in systems and marketing at Exxon International, Marine Management Systems, Inc. and Pechiney Ugine Kuhlman. On a pro bono basis, Brenda is a charter organizer of Kauffman Foundation’s One Million Cups/ Stamford and a judge for the annual Draper Competition for Collegiate Women.