Year In Review: Crowdfunding Round Up for 2013

Year in Review: Crowdfunding Round Up for 2013

crowdfunding picIt is the afternoon of New Year’s Eve as I am writing my last post for 2013.  Crowdfunding seems a logical choice.  2013 put crowdfunding on the map, among filmmakers, inventors, samaritans, start-ups, the crowd at large.

In 2013, Veronica Mars attracts 90,000 donors to pledge $5.7 millions in 30 days; Star Citizen raises more than $15 million through Kickstarter and their own website in the most-funded campaign ever, surpassing even Pebble.  At the same time, and enable people to fund relief for victims of the Boston Marathon and the tornadoes striking Oklahoma City.  This is only naming a few.

In 2013, Italy beats the United States to the punch by becoming the first country in the world to make equity crowd funding legal.  At home, several states, including Kansas and Georgia, authorize intra-state crowdfunding.

In October, finally, the SEC proposes monumental new rules that allow start-ups and small businesses to raise capital by selling securities over the Internet.  Finally, the man on the street has a choice to participate in funding that had so far been reserved for the wealthy, with all of its pitfalls.  At the same time, FINRA releases the corresponding rules for aspiring funding portals.

What a year 2013 has been, a year of entrepreneurialism and economic optimism, with crowd funding as an integral part.  You know what, let’s make it the bellwether.  One thing I know for sure is that it’s only the beginning.  Let’s build on that foundation, or start with a clean state, Yogi’s choice, as my teacher always says.  Yogi’s choice it is.

With that, a very Happy 2014!

Eckerle Law offers legal advice in a variety of transactional and regulatory matters and serves companies’ plenary business law needs. Its founder, Bettina Eckerle, is a veteran of Debevoise & Plimpton and Wachtell, Lipton, Rosen & Katz.  She also served as the General Counsel of two companies en route to IPO. Please visit the Eckerle Law website for more details.