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Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very sp
by niggler 14y ago
Based on the verbiage, FundersClub is allowed to slide because "FundersClub and FC Management are advisers solely to venture capital funds", which has a very specific meaning that doesn't apply to crowdfunding.
It's pretty clear that WeFunder will need to be registered broker-dealers. I'm surprised they didn't do it already -- it's not a particularly expensive or time consuming process (and here in NY at least people set up BDs all the time because investment banks and most funds won't pay finder's or other fees to entities that aren't broker-dealers)
- mittal 14y agoCorrect, FundersClub is a venture capital advisor (ie, a VC), and is not relying on JOBS Act exemptions or a broker-dealer registration. The TechCrunch article title is not technically accurate, though in their defense, people do seem to want to group online VC in with crowdfunding at a high level. There are important distinctions, however.
- joshconstine 14y agoI'm Josh, the author of the TechCrunch article. I've updated the post to reflect the differences between equity crowdfunding and the online venture capital model FundersClub uses. I've also noted that WeFunder takes the broker-dealer route.
- gbelote 14y agoYep - we (Wefunder) already have a broker dealer partnership and one of my cofounders has taken the Series 7.
- niggler 14y agoOut of curiosity, who are you using for finop (or is someone taking the 27)?