Crowd-Funding Success

[BestSon]

The definition of the term “crowdfunding” has evolved in recent years. The term was originally used for donation-based crowdfunding only, but is now used to define capital-based crowdfunding — also known as Regulation Crowdfunding — under Title II (2) and then under Title III (3) of the Jumpstart Our Business Startups (JOBS) Act of 2012.

The JOBS Act has significantly leveled the investment playing field, encouraging a growing number of entrepreneurs to begin fielding their own crowdfunded offerings. Unfortunately, in their excitement to take advantage of these new opportunities, many entrepreneurs fail to recognize that significant legal and managerial risks remain when raising crowdfunded capital. These risks can be devastating professionally and personally if not identified and addressed from the start.

To help entrepreneurs get started right, Commonwealth Capital provides a complimentary 40-page Abridged Edition of the e-book, downloadable from its website. The new Chapter Two includes comprehensive excerpts and summaries from the 685-page document known as the SEC Final Rules regarding crowdfunding. Educate yourself on the facts of this process. Understand all the aspects. Plan for prosperity, but document for disaster.

A complimentary copy of the Abridged Edition can be downloaded at http://commonwealthcapital.co/get-your-ebook We hope you will let us know what your thoughts…

 

[Kim Welch]

Is this a scare tactic? I think any certified public accountant will know how to handle your funds from crowdfunding and other sources.

 

[Jared Isham]

I think the misconception on this topic is whether you are raising capital for your business as made possible in yhe JOBs act or you are using crowdfunding in the normal way (pre-sales of products/items in order to raise working capital to create the product). The JOBs act allowed investors to be found via crowdfunding platforms (from what i umderstand) that previously required a lengthy set of qualifications.

Dont think the "legal" side of things would apply to the majority of filmmakers on this forum as most will likely be doing the pre-sale method that is not raising capital to fund a studio type business with profit sharing options.

Those are my thoughts.