Venture Capital Companies Don't Flock to Crowdfunding Rules

By Brus, Brian | THE JOURNAL RECORD, October 8, 2015 | Go to article overview

Venture Capital Companies Don't Flock to Crowdfunding Rules


Brus, Brian, THE JOURNAL RECORD


OKLAHOMA CITY - An upcoming Securities Exchange Commission rule about equity crowdfunding doesn't interest some Oklahoma venture capital agencies.

"We tried crowdfunding a couple of years ago without much success, so I don't think it will be part of our strategy going forward," said Cameron Mackie, vice president at Emergent Technologies LP.

The Jumpstart Our Business Startups Act, signed into law three years ago, was intended to open doors for small businesses seeking development capital. Current rules require individual business investors to be accredited, which means an income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000. And net-worth criteria include a minimum net worth of at least $1 million.

Title III of the law - once the SEC finalizes the rules - is expected to democratize funding via crowdfunding, allowing businesses to raise up to $1 million directly from the public.

Scott Meacham, chief executive and president of i2E Inc., said he's keeping an open mind until the rules are issued. He said he's seen it work well for startup retailers.

"There's a place for it in crowdfunding," he said. "But the problem is that, typically, a startup doesn't want a whole lot of owners. And they tend to want more strategic investors - people who can help them develop their business or provide professional contacts to larger investors at later stages."

"It kind of makes more sense for a company that's advanced a little farther to a larger financing round, to make it a little less risky and a little more manageable," he said. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Venture Capital Companies Don't Flock to Crowdfunding Rules
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.