Follow The Leader: Why The U.S. Needs A Federal Tax Credit For Angel Investors

Angel Tax CreditThe UK crowdfunding market is the leading, and most successful, crowdfunding market for several reasons. Arguably the primary reason for their success is that the UK tailored, and continues to tailor, their securities laws specifically to promote crowdfunding/P2P lending. A lesser known reason however, is the availability of certain tax incentives for angel investors. Tax incentives which the U.S. currently does not, but certainly should, have available.

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Intrastate Crowdfunding: The Often Overlooked Option

With the Federal Title III rules recently becoming effective, there is certainly a lot of excitement surrounding national level “retail” crowdfunding to non-accredited investors. That’s obviously great news for the industry, but it’s important to remember that the majority of the states currently have some form of “intrastate” retail crowdfunding laws already in effect; many of which offer significantly more favorable terms to issuers and investors than the federal rules. Moreover, the number of states passing these laws, and their use, continues to grow making them viable capital options for many companies.

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Please Join Me For The Upcoming Incubate Illinois Conference

Incubator Logo Symbol-03As many of you know, I do a lot of speaking engagements through Illinois pitching the new Illinois crowdfunding laws and advising small and emerging  Illinois businesses about all of the new types of available funding options. In doing these speaking engagements, I recently realized that there wasn’t a single conference in Illinois that was tailored toward bringing incubators/accelerators, VC/angel investors, and emerging businesses together. So, being the type of person I am, I decided to create one … oh, and its FREE to attend!

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Illinois Crowdfunding Is Officially Here As VestLo Becomes The First Approved Illinois Intrastate Portal

LogoThat’s right folks, it’s official. Illinois now has its first approved local crowdfunding portal, VestLo.com. The Securities Division of the Illinois Secretary of State has (albeit it verbally) recently approved VestLo’s application to register as a “qualified” crowdfunding portal under the new Illinois Intrastate Crowdfunding Exemption. While I am still working with local regulators to work out some of the administrative kinks (such as the escrow structure) all expectations are that we will see the first Illinois intrastate offerings going live in the next month or less.

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Out of Alignment: The Dysfunctional Definition of an Accredited Investor & The Often Overlooked “Entity” Issue

EntityAs many of you know there is a heated ongoing debate as to whether the current definition of “accredited investor” should be revised and, if so, how it should be revised. The overwhelming majority of recent articles, and even proposed legislation, surrounding this topic focus solely on advocating for (or against) proposed changes to the definition of “accredited investor” as it relates to individual investors. However, if the primary goal of modifying this fundamental definition is to increase participation, and the available pool of capital, in the private market we absolutely cannot lose sight of the proposed changes concerning entities. Something no one seems to be talking about.

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