05 Apr Dallas Entrepreneur Launches STREETFUNDER to Promote/Enable Crowdfunding
With President Obama today signing the JOBS act, crowdfunding is about to explode. Long-time Dallas entrepreneur Brian Teague is launching STREETFUNDER.com to capitalize on this new era in startups and help local Dallas startups raise money to get their companies off the ground.
While the legislation has been signed, there are still some questions that remain to be answered as to how the entire process will work out. To that end, the STREETFUNDER isn’t yet publishing companies looking for funding, however you can register and add your company details.
LAUNCH DFW caught up with Brian today to get some additional details:
Who specifically is behind the site? Just you, or others involved?
Brian Teague – http://www.linkedin.com/pub/brian-teague/8/a56/140
Adam Anderly – http://www.linkedin.com/in/adamanderly
Blake Burris – http://www.linkedin.com/in/blakeburris
Why are you taking this on? What is your goal?
This is for anyone who has ever struggled to get funding for their startup company. I personally cut my teeth trying to raise money and STREETFUNDER is my entrepreneurial expression to solving for the problem. STREETFUNDER and crowdfunding in general will go a long way in helping to establish Dallas as an entrepreneurial hub and startup destination. Ultimately, we want to make it easier for Dallas entrepreneurs to succeed.
How does STREETFUNDER compare to AngelList?
They are very similar; however AngelList is not actually involved in crowdfunding as it stands. Instead, AngelList crowdsources accredited investors who publicly display their interest in a company and show whether or not they’ve invested. To invest, the Angels have to use traditional methods such as Subscription Agreements, PPMs etc… In turn, it allows companies to market their startup company to Angels in hopes on generating interest in their deal.
For crowdfunding to work properly, companies like STREETFUNDER will have to vet startup companies at a local level. This will take some hands-on work. Companies like STREETFUNDER will differentiate themselves by the level of service they employ in working to capture deal flow and actual investments in startup companies.
What is the process for crowd funding and how does it work?
President Obama signed the JOBS Act on Thursday April 5th 2012, which allows startups to begin crowdfunding up to $1 million per year from non-accredited investors.
If startups do decide to crowdfund, they’ll have to comply with a variety of annual financial disclosure requirements: self-certified financial statements or tax returns (for startups raising $100,000 or less), independent accountant reviews ($100,000-$500,000), or audited financials (more than $500,000). In addition, companies must disclose their capital structure. The SEC has 270 days to formulate these and other rules around crowdfunding.
The JOBS Act also lifts a longstanding, often-broken restriction on “general solicitation,” or publicly advertising that you’re raising money. Here, the SEC has 90 days to come up with a specific rule.
Companies such as STREETFUNDER will also have to register as crowdfunding hubs with the SEC.
Once available, startup companies will post their listing on hubs like STREETFUNDER. STREETFUNDER will then be able to market them to perspective investors. Ordinary people will then be able to make investments into those companies without having to be accredited investors.
You can visit http://www.streetfunder.com/ today and add your company details if you’re interested in participating in crowdfunding once all the final SEC rules are in place.