And crowdfunding's champion, Rep. Tom Murry, has already pledged his support for moving the bill forward during next year's long session.
The changes are coming from lessons learned from other states and countries, says Mark Easley, a local angel investor and co-organizer of the lobbying group (He hasn't yet committed to leading the effort next year.)
First, it might make sense to raise the investment limit from the proposed $2,000 (same as the federal limit) to $5,000 or $10,000 (like seven states have done). Businesses may hesitate to use equity crowdfunding as a fundraising tool because they don't want hundreds of investors with such small stakes in their companies. --Read On
I say "begrudgingly loved" about the former because I'm not a huge fan of people telling other people how to behave, especially when it comes to etiquette in the entrepreneurial pursuits. We're a breed of "it's better to ask forgiveness than permission" -- yet we still get all huffed when someone wants to get on our calendars without having jumped through the proper hoops.
Yeah, I know there's etiquette to this game, and I know there's a fine line between aggressive and douchebag. I'm also aware of the fact that being on the receiving end of everyone's meeting request is a hassle. I get about two dozen cold business emails a day and another handful of cold networking type emails on top of that. Whatever. First world problems.
One of the reasons I started ExitEvent was to give all entrepreneurs, from beginner to serial, a chance to network amongst themselves unshackled from topic, cause, or sponsor, either online or in person via the Startup Social.
But the Social, the monthly agenda-free, entrepreneur-and-investor-only, free-beer-fueled event, was never about networking. In that I mean it was never about collecting business cards and writing awkward follow-up emails the next day.
It was and still is about relationships. --Read On
The Cryptolina Bitcoin Expo in downtown Raleigh last weekend proved to us there's an industry forming around bitcoin and cryptocurrency. And even locally in North Carolina. These six local startup companies have either launched or will soon launch new cryptocurrency-related businesses around data, storage, e-commerce, alternative energy and hardware.
Check out their pitches in the video below and stay tuned for more coverage of the bitcoin industry forming in the Triangle.
Durham husband-and-wife entrepreneurs William and Galyna Tate left the Triangle in March to spend six months in their second home of Ukraine. They've stayed busy building their personal finance startup My Money Landscape there, despite the war raging in the nation. And in fact, Ukraine has become a key strategy for the young company.
As the couple prepares to head back to the Triangle in September, William Tate recently shared with ExitEvent some reflections on his time in Ukraine, and updated us on the startup idea he dreamt up after years in financial planning at Morgan Stanley.
Here are excerpts from our Q&A:
EE: You aren't located where most of the conflict is occurring, so what is it like where you live and where you work?
WT: Galyna and I live in the same small city where she grew up, Alexandria, Ukraine. We bought a small, but comfortable, two-room apartment on the 8th floor of a very common Soviet-style, nine-story building.
Galyna's parents still live and work in Alexandria. Our city is less than 200 miles west of the Russian terrorists' activity in the Donbas Region. There is a military helicopter training base in our city. We often hear and see these choppers conducting their training just before they go off to battle the Russian Beast from the East. Sadly, several brave young men from our region have died protecting Ukraine from these ruthless Russian invaders.
But we live and work far enough away from the war that, except for the Ukrainian military soldiers and volunteers area funerals sometimes, life and work go on pretty much as usual. Our software development team, M.I.F. Projects, is in Kirovohrad, Ukraine. Kirovohrad is about 60 miles west of our Alexandria home. I am usually in Kirovohrad during the week working directly with our team there. --Read On
I really didn't want to have to do this, but then you all started participating in the ALS Ice Bucket Challenge, and well, it's hard to stop watching the videos. Over and over and over again.
But we're seeing some ice water-dumping creativity coming from Triangle startups, and why not laugh at all our friends getting soaked. So here's a roundup of #IceBucketChallenge videos out of our community.
If you're a startup or founder (ahem, Chris Heivly of the Startup Factory (Done! See second video. Can't miss the Batman boxers), Scot Wingo of ChannelAdvisor, Jason Caplain of Bull City Venture Partners (Done! See third video) and all the American Underground companies challenged by Michael Goodmon) and you choose to participate, send us your video and we'll throw it up.
Groundwork Labs has generated some news lately with its new stipend for out-of-town startups and partnership with the international entrepreneurship organization UP Global. It's also recruiting a new class of five startups—the deadline is September 5.
Its director, John Austin, recently sat down with the ExitEvent team to share the history of his program and explain its link to the NC IDEA grant program and the venture capital firm Idea Fund Partners. The story was pretty cool, and worthy of publication for those who haven't heard it. Thanks to Austin for writing it up in the paragraphs below.
Since Groundwork Labs doesn't charge a fee or take an equity stake in the companies that participate in our program I often get asked “How does Groundwork Labs afford to do what you do?” The short answer is we are funded by NC IDEA, a private, not-for-profit whose mission is to help North Carolina startup technology companies. Because “NC” is in the name, many folks assume NC IDEA is a state-funded entity, but that is incorrect.
Then I get asked, “How can NC IDEA afford to do this?”, and then, “How does NC IDEA fund their grant program?”
The short answer is you can think of it as an endowment—and there's some fascinating history of how it came to be.
I thought our startup community would be interested in that history and enlisted the help of John Cambier from Idea Fund Partners to help with the story—he was personally involved in MCNC for more than a decade. --Read On
Teach for America showed Janice Smith the need for teachers to learn from each other. Groundwork Labs helped the first-time entrepreneur develop a product to help that learning happen, and test the concept with teachers and administrators.
And her next move—participation in high-profile Silicon Valley accelerator Imagine K12—will offer introductions to venture capitalists and education technology experts who Smith believes can help get her startup Mission 100 Percent into schools around the nation.
"We're obviously not staying there—we are really passionate about being a Durham-based company," she says. "But we recognize that Silicon Valley is where a lot of money, resources and companies are. Being out there for three months will be an opportunity to network the crap out of San Francisco.”
If you haven't heard, the North Carolina Senate voted down a series of measures that included intrastate crowdfunding, putting to rest a two-year battle to change laws to allow unaccredited investors in the state to fund North Carolina businesses.
Today's news—along with an announcement that fast-growing, national headline-grabbing real estate crowd lending startup GROUNDFLOOR will move to the more progressive Georgia—are blows to our region's entrepreneurial community.
Two barometers of thriving entrepreneurial ecosystems are the ability to fund and grow businesses from startup to profitable companies and governmental support for that process. Though the Triangle continues to show proof of the former—many companies have raised funds and grown their businesses here—the failure of crowdfunding shows a lack of support from those helping to shape the economic future of the state.
Though GROUNDFLOOR's news isn't tied to the legislation (CEO Brian Dally confirmed this for me in a call today), the exemption that allowed intrastate crowdfunding in Georgia is what attracted the startup to launch there earlier this year. Relationships built with investors and developers in the months since made it the obvious choice for a headquarters, Dally says. --Read On
Jay Bigelow's column is part of a regular series. Why Jay? Because he's charged with meeting and learning the needs of entrepreneurs all over this region and connecting them with the resources and people to help achieve their goals.
We are beginning the season of pitches and I cannot emphasize enough the importance of the founder/CEO being able to deliver an effective pitch for his/her company. It is mission-critical!
You'll need to pitch well if you want to gain customers. You will need to pitch well if you want to attract top-notch talent to your team. You will need to pitch well to land that major partnership. And you absolutely need to have a great pitch if you want to raise capital. I have seen innovative technology at good companies not get funded because of bad pitches. I also have seen mediocre technology get funding because of a superior pitch. --Read On
First from AT&T, and likely from Google Fiber and other players.
But as much as we're all celebrating faster and more reliable Internet at work and at home, there's a whole lot else that one gigabit-per-second speeds allows in industries like health care, retail, banking and for next-generation startups. And that's why ExitEvent partner WRAL TechWire is hosting the October 13 half-day event, "Fiber Transforms the Triangle" at SAS Institute in Cary.
Power players in the fiberoptics and telecom space are on board to share their thoughts. There's Steve Vanderwoude of Madison River Ventures (investor in local startups now-defunct Argyle Social, Spring Metrics and inMotion Now), former MCNC CEO Joe Freddoso (who built the state's first fiber network to connect the universities) and former FCC executive Blair Levin. The full schedule hasn't yet been released, but here's today's event update from TechWire.
A side benefit to the relevant content—the $49 admission cost includes a year's subscription to WRAL TechWire. That should appease anyone upset over the company's year-old paywall.