April 24th, 2014 by: Grow VC Group

In July 2013, Ontario took a big step towards opening the market to equity crowdfunding, as Crowd Valley reported in this article, allowing a company to run an equity crowdfunding portal for social or environmental issuers. Eight months later, in March 2014, the Ontario Securities Commission (OSC), together with other provincial financial authorities (Alberta, Quebec, Saskatchewan and New Brunswick), published a joint proposal for regulations for securities crowdfunding (i.e. the Crowdfunding Exemption). 

All in all, the proposed regulations seem to be broadly in line with similar moves in the US and the UK. The fact that different Canadian provinces are considering to adopt the Crowdfunding Exemption reflects the willingness of the different financial authorities to harmonize their regulations, in order to form an almost unified crowdfunding market.

Read the whole article on Crowd Valley Blog.

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April 24th, 2014 by: Grow VC Group

The coming 8 percent annual growth in international trade adds to the past three decades’ dramatic expansion in world trade owing to tariff liberalization, regional integration, lower transport costs, and spread of global supply chains. Now five technology game-changers will erase many of the pending impediments to globalization – and open tremendous opportunities for small businesses:

1. Consumer-powered commerce.

2. Virtual supply chain.

3. Global data integration.

4. Hyper-connectivity.

5. Global currency.

Smallness is in fact an asset in the coming economy: what entrepreneurs and small businesses lack in scale they make up in agility, speed, and creativity – success drivers in the 21st century global marketplace of changing consumer fads, niche markets, and out-of the-woods competitors. TradeUp is designed to help these companies move even faster.

Read the whole article on TradeUp Blog.

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April 21st, 2014 by: Grow VC Group

Small and medium-sized enterprises (SMEs), firms with fewer than 500 employees, are the backbone of U.S. economy. They make up 99 percent of all firms, employ over 50 percent of private sector employees, and generate 65 percent of net new private sector jobs. SMEs account for over half of U.S. non-farm GDP, and represent 98 percent of all U.S. exporters and 34 percent of U.S. export revenue.

To grow and globalize, SMEs need access to credit and cash flow. Credit conditions for U.S. SMEs deteriorated in the wake of the financial crisis, and are expected to continue depressed as Basel III capital adequacy requirements come into effect in 2015. Early-stage companies seeking equity finance have also faced challenges, as venture capital is increasingly focused on later-stage companies and available only to a handful of firms. Small business exporters have been doubly challenged, as entering and operating in international markets implies costs that far exceed those of firms targeting and shipping within their domestic markets alone.

As the U.S. economy recovers, 2014 is becoming a big year for alternative lenders and investors on the online and crowdfunding spaces, and see their expansion also to mobile platforms.

Read the whole article on TradeUp Blog.

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April 18th, 2014 by: Grow VC Group

Summary:

Small and mid-size enterprises with fewer than 500 employees are the backbone of the U.S. economy, and make up 98 percent of the 300,000 U.S. exporters. SMEs have in the past few years gained ground in the value of U.S. exports, now making up over a third of all exports. The number of U.S. SME exporters is, according to surveys, poised to expand substantially. Rigorous academic studies time and again show that these globalizing companies outperform the broader market by all key metrics; at the same time, these high-performers view lack of access to financing as a leading constraint to their international expansion. This White Paper addresses this market inefficiency. It takes stock of the state of SME exports in the United States, lays out research findings on how and why export-driven globalizing companies outperform their peers that target only the domestic market, and why exporter SMEs face a financing gaps. We conclude by discussing how TradeUp addresses this market inefficiency.

The white paper is available on TradeUp Fund web site.

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April 17th, 2014 by: Grow VC Group

On March 14th 2014, Japan’s Prime Minister Abe and his Cabinet approved a de-regulation of equity fundraising to the Financial Instruments and Exchange Law paving the way for companies, especially startups, to raise finance through crowdfunding.

PM Abe’s ‘Abenomics’, is set to encourage SMEs growth and development, thereby encouraging domestic demand and finally overcoming two decades worth of deflation. Mr. Aso, Japan’s Financial Minister states that the reform “is necessary to strengthen the provision of risk money and boost the confidence in the financial market”.

Read the whole article on Crowd Valley Blog.

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