He is a wealth of knowledge in the finance industry, having not only raised money privately, but also in public markets. He is one of the founders of Baldwin and Clarke Financial and today he comes to talk with us about crowdfunding.
There are many rules and regulations that people need to be aware of. It is recommended that you engage with a broker dealer because there is so much to know about and prepare for. By utilizing the background of a broker dealer, they can assist crowdfunders in making sure that they are being compliant and that they will not be taking on liabilities in the fundraising process. This way the company will be in a better position to raise more money.
On another front, the broker dealer can provide a level of financial discipline to the process, to create a framework of growth for the entire business. Jack says you need to be smart, if you do not have the kind of infrastructure to allow you to have good financial capability, then you probably shouldn’t be asking the public for money. It is a broker dealers job to make sure the business owners are thinking about it, to protect the investment that the public is making in the company. It is like a report card.
In this interview, Jack also discusses many of the rule changes that are happening in the financial market place. For example, entrepreneurs can now hire a firm to represent their ideas, and ask as a portal for the data necessary for an investor to evaluate it and see if it is an area of interest.
Jack also explained the best ways to protect investors and how to provide them with an exit strategy. He says it is important for the investors to understand who is providing assistance and advise to each company, to give them a better understanding.