16Jul

JOBS Act Giving Crowdfunding a Boost

The JOBS Act (Jumpstart Our Business Startup Act), a law that encourages the funding of U.S. small businesses and startups by easing various securities regulations, had the Reg A+ exemption go live on June 19th of this year. The exemption will further facilitate access to capital for smaller companies and provide investors with more investment options.

Smaller companies now have the opportunity to offer and sell up to $50 million in securities in an annual period, subject to eligibility, disclosure and reporting requirements. This is great news for startups and small businesses, of which 86 of the fasting growing startups in the U.S. call Utah home. Regarded as the next “Silicon Valley”, the state leads the Forbes 2014 list of top states to do business, and ranks third on CNBC’s list of the best states to do business.

Because of this, crowdfunding platforms, such as Seed Equity Ventures, are now closing the gap for entrepreneurs working to raise capital in the early stages of their business. Giving them a direct lifeline to make it out alive past their seed stage. All the while, they are providing investors worldwide the option to get involved with compelling new opportunities they otherwise wouldn’t normally find.

The introduction of crowdfunding into the financial landscape of today has created an easy exchange of capital between businesses and their investors through its efficiency in getting key information out to the masses. And the numbers don’t lie.

Last year saw a 167 percent increase in money raised for companies and individuals via crowdfunding; that’s a $15.1 billion jump from 2013. Over $250 million of that came directly from venture capitalists and strategic investors.

Startups with even the greatest potential who choose to not go the crowdfunding route often find themselves struggling to stay afloat in their early stages, namely the seed stage. This is because most venture capitals and institutions are more inclined to make an investment in a smaller business once it’s already been established in the marketplace and seeking to expand.

05Sep

Impressive Startups in Emerging Markets

Todd Crosland startup global entrepreneurshipForbes recently came out with a group of new tech startups that have the edge in their own perspective emerging markets. Seedstars World, an affiliate venture capital firm to Seedstars, created this list of emerging markets and dominating startups associated with these markets. There were 19 startup companies mentioned in the article in varying emerging markets.

The first emerging market mentioned is the fast-growing finance infrastructure market. The two startups mentioned for this industry were Accra and Remit.ug. Accra is a Ghana based startup that is developing an online payment platform based on Bitcoins. Remit.ug, based out of Uganda, is building a money transfer platform that allows people from all over the globe to transfer money to people in Africa with a simple click of a button.

The mobile is the next emerging market written about in the article. Many new startups are developing mobile at the beginning of their development stages now that mobile has fully developed as an emerging market. The startups mentioned in this emerging market were Blocks, ChannelKit, Manads, OkHi, StudyPact, and Krowdpop. Blocks is a Tehran based startup that developed their own smartwatch. ChannelKit, from Moscow, is Pinterest for links. Manads is based out of Baku, Azerbaijan and developed advertising for after call screens. OkHi, based out of Nairobi, is developing physical addresses for every cell phone. StudyPact is a Tokyo-based startup that pays students for meeting their study goals, while charging them for not reaching their study goals. Krowdpop is a crowdfunding platform for pop music in South Korea.

Another emerging market in the discussion is mobile delivering services. These services make it easier for the consumer to obtain a good or service by just using their cell phone. Washbox24 is based out of Bangkok, and they use communal locker locations as drop-off points for customer’s laundry.

Fixing world-class issues is another emerging market that multiple startup companies are focusing on. These companies are replacing old technology with new technology to fix the bigger problems facing certain environments. The startups in this category are Khusela, KinTrans, myVLE, and Green Energy. Khusela is based out of Cape Town and is developing a low-budget fire alarm system for slum environemnts. KinTrans, based out of Dubai, is working on their platform that translates sign language in real time, into voice and text. MyVLE, in Casablanca, is an online learning platform that uses SasS. Green Energy, in Nigeria, is developing the process that transforms solid waste into electrical energy and petroleum.

E-commerce is the final emerging market discussed in the article. With fast-growing economies, e-commerce is necessary for fast paced production. The startups for this category include Prisync, Triip, Scandid, Freesheh, Poeyek, and TorQue Workspace. Prisync, based out of Istanbul, is a b-to-b company that offers pricing analytics and tracking. Based out of Ho Chi Mihn, Triip is is a crowdsourcing platform for tours. Scandid, based out of Bangalore, allows its users to compare barcodes using their app. Feesheh is based out of Amman and allows its users to shop online for musical instruments. Poeyek, based out of Darkar, is developing a business management platform for small businesses. TorQue Workspace is a software company based out of Rwanda creating a platform to help wholesalers manage their distribution.

All 19 of these companies are developing their technologies in these emerging markets to hopefully obtain the global edge over their competitors.