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Episode 48: Crowdfunding Regulations and Noncompliance: Breaking Down FINRA’s Million-Dollar Fines

Episode 48: Crowdfunding Regulations and Noncompliance: Breaking Down FINRA’s Million-Dollar Fines

On this episode of the Capital Insight podcast, Jenny and Michelle discuss recent important developments in crowdfunding regulations in light of significant fines issued against two major fundraising portals.

 

Recently, the Financial Industry Regulatory Authority (FINRA) fined two funding portals a combined total of $1.75 million, including a $1.4 million fine to WeFunder, the largest Regulation Crowdfunding portal. The action provides important insights into how FINRA will evaluate compliance with the intense investment crowdfunding regulations.

 

In this episode, Jenny and Michelle discuss what went wrong — from incorrectly managing campaigns to investment recommendations in marketing materials — and the impact this may have on the future of crowdfunding. As CEO of the crowdfunding platform Crowdfund Mainstreet, Michelle offers a unique perspective on the issue. “We have to stop alluding to this as a very simple, easy, fast way to raise money — crowdfunding is none of those things,” she says. “It takes a lot of work and effort. And in the end, it pays to do things by the book.”

 

Learn more about the FINRA action here.

 

 

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The Capital Insight podcast intro and outro is voiced by Marina Verlaine. She can be contacted at reel.peach.vo@gmail.com

Episode 30: Raising Capital for a Radically Transformational Business with Katrina Spade

Episode 30: Raising Capital for a Radically Transformational Business with Katrina Spade

In this episode, Capital Insight co-hosts and securities attorneys Jenny Kassan and Michelle Thimesch talk with Katrina Spade of Recompose, a full-service funeral home specializing in human composting. Listen to catch Katrina’s insight into the process of raising capital for a business that was still not legal when it started and how to stay true to your vision even when you need large amounts of capital to get your business off the ground.

Episode Highlights:

  • “I knew that the world wanted this, and I knew that it was going to take a pretty good amount of capital.”
  • “One of the reasons I did not want to create a for-profit was that I was afraid of losing the values that I had set up in my non-profit.”
  • “I founded Recompose as a for-profit company that has in its bylaws environmental or social goals that sit alongside profit goals. It was a way to start signaling to investors that we weren’t just about profit. Recompose is very much about an environmental and social goal: the environmental goal is creating new soil and saving carbon and reducing the pollution that happens with our [current] funeral practices – creating this beautiful ecological wealth-building practice instead. And the social goals have to do with accepting our mortality and thinking more deeply about how we’re connected to the natural world as humans. That was the first thing we did to signal to investors that this is a different kind of company.”

Socials:

Company website: https://recompose.life/

Company instagram: @recomposelife

Entrepreneur instagram: @katrinaspade

Company twitter: @recomposelife

Interview

Katrina Spade, Founder & CEO of Recompose

Company

Recompose

Bio: 

Katrina Spade is a designer and the inventor of a system that transforms the dead into soil (aka human composting). In 2017, Katrina founded Recompose with the goal of offering earth-centric, participatory, and meaningful death care. Recompose has led the successful legalization of human composting in Washington State, Oregon, and Colorado. In 2020, Recompose began offering the service of human composting to the public. Katrina and her team have been featured in Fast Company, NPR, the Atlantic, BBC, Harper’s Magazine, and the New York Times. She is an Echoing Green Fellow, an Ashoka fellow, and a Harvard Kennedy School Visiting Social Innovator.

Get In Touch:

Email: info@recompose.life

Company: www.recompose.life/

Check out past episodes here!

Additional resources:

Angels of Main Street

Crowd Fund Main Street

Intro and outro voiced by Marina Verlaine. She can be contacted at reel.peach.vo@gmail.com

Check out past episodes here!

Episode 25: Stakeholder Capitalism with David Ferran

Episode 25: Stakeholder Capitalism with David Ferran

David Ferran, Founder & CEO of the Torrey Project, shares his background in venture capitalism and his motivation for pivoting to conscious stakeholder capitalism. Together with Jenny Kassan and Michelle Thimesch, David walks us through an understanding of stakeholder capitalism as a model for sustainable value creation.

Episode Highlights:

  • Shareholder Capitalism versus conventional shareholder primacy/financial capitalism
  • Debunking myths and resistance to the adaptation of stakeholder capitalism
  • Education—a catalyst for creating awareness of other forms of capitalism and for creating a new generation of conscious entrepreneurs, globally
  • How Torrey Project’s Venture-RBF Fund works and what they are doing differently
  • A cautionary tale of venture capital funding gone wrong for business founders
  • Open call for female-led and under-resourced entrepreneurs—$100M raised fund available

Key Takeaways:

“We are creating a new generation of conscious entrepreneurs.” – David Ferran

“The only way we are going to change the early-stage capital allocation in America is to demonstrate that not only is there a different way to do it but there’s a superior way to do it. And that the net result is higher financial returns. Not lower financial returns.” – David Ferran

“The more you take care of all your stakeholders, the more value you build as a company founder.” – Jenny Kassan

Interview

David Ferran

Company

Torrey Project

Bio: 

Success came early in David Ferran’s career. At the age of 24, he raised his first million dollars in venture capital. By the time he turned 33 he had bought his first public company and by his 40th birthday, he had taken his first company public with an IPO on the NASDAQ. For nearly four decades David Ferran worked, played, and fought with venture capital investors, private equity investors, and Wall Street analysts. Having been President, CEO, and Chairman of three publicly traded companies gave David an inside view of how capitalism really works in America. Founding seven companies of his own gave him the chance to understand the challenges faced by young entrepreneurs.

These days, David Ferran is committed to creating and empowering a new generation of conscious entrepreneurs while also seeking to impact the flow of global investment capital towards more socially responsible businesses and conscious business leaders.

Torrey Project is a non-profit organization, based in San Diego California that is committed to accelerating the pace of adoption of stakeholder capitalism in America. Torrey Project empowers and supports entrepreneurs who are committed to building businesses that pursue both profit and purpose and act as a force for good in the world.

Get In Touch:

LinkedIn Profile: linkedin.com/in/david-j-ferran-executive-mentor-5a19b23

LinkedIn Company Page: https://www.linkedin.com/company/torreyproject/

Company: https://www.torreyproject.org/

Additional resources:

  • Angels of Main Street is a community of investors with no minimum wealth or income requirement to join.  If you’d like to be part of a community of diverse investors who want to make a difference with their dollars, please join us in Angels of Main Street!

Episode Credit:

Intro and outro are voiced by Marina Verlaine. She can be contacted at reel.peach.vo@gmail.com

 

Check out past episodes here!

Episode 24: Social Impact Investing with Laina Greene

Episode 24: Social Impact Investing with Laina Greene

Laina Greene is a Social Impact Investor & Tech Entrepreneur. In this episode, Laina shares her journey and background on social impact investing and why she believes in funding resilient and resourceful women entrepreneurs in indigenous communities.

Episode Highlights:

  • What inspired Laina to get into social impact investing
  • Making investment decisions
  • Her take on traditional venture capital model versus social impact investing
  • Demystifying impact investors
  • Pieces of advice to both entrepreneurs and investors
  • Impact investing in times of global pandemic
  • A triumphant story of a female entrepreneur

Key Takeaways:

“Look for those investors that care about the impact that you’re making and would give some value to that impact.” – Laina Green

“Women are a great investment. They are really resourceful.” – Laina Green

Interview

Laina Greene

Company

Angels of Impact

Bio: 

Laina Greene is the CEO and Founder of Angels of Impact, a community of investors, social entrepreneurs, and volunteers that provides funding and technical assistance to women-led, indigenous community-based enterprises.

Born and raised in Singapore, she has lived and worked in Switzerland, the United States, and Indonesia and traveled to more than 47 countries for work and leisure. She’s also a tech consultant to global entities such as International Telecommunications Union, INTELSAT, Cisco Systems, and Juniper. Laina, founded and ran two for-profits and two nonprofit organizations over the course of her working life.

Get In Touch:

LinkedIn Profile: linkedin.com/in/laina

Additional resources:

  • Angels of Main Street is a community of investors with no minimum wealth or income requirement to join.  If you’d like to be part of a community of diverse investors who want to make a difference with their dollars, please join us in Angels of Main Street!

Episode Credit:

Intro and outro are voiced by Marina Verlaine. She can be contacted at reel.peach.vo@gmail.com

 

Check out past episodes here!

Episode 23: Fundraising for Sustainable Business with Jocelyn Gaudi Quarrell

Episode 23: Fundraising for Sustainable Business with Jocelyn Gaudi Quarrell

In this episode, GO Box CEO Jocelyn Gaudi Quarrell shares her plans to eliminate waste for to-go food and drinks, her journey in fundraising, how her company’s core value of sustainability impacts her management decisions, and her strategy to get investors on board.

Though Jocelyn is no stranger to fundraising, she shares why she approached Jenny Kassan and her team to be guided and gain more insights into the best way forward.

Episode Highlights:

  • Importance to keeping all stakeholders engaged in Go Box’s Circular System
  • How she balances her time on growing the business, keeping revenue up, and fundraising
  • Importance of keeping employees well informed and engaged on how fundraising is coming along
  • Conversations with diverse investors
  • How she handles the stress and pressure of raising capital
  • Her tips to entrepreneurs who are just getting started on their fundraising journey—from creating pitch decks to rallying support.

Key Takeaways:
Fundraising can be a stressful and emotionally laborious process, so keeping your community close to help work through the process is invaluable.” – Jocelyn Gaudi Quarrell
Your customers are your best investors.” – Jocelyn Gaudi Quarrell
Getting it going is more important than getting it right because it is a fluid process.” – Jenny Kassan

Interview

Jocelyn Gaudi Quarrell

Company

GO Box

Bio: 

Jocelyn Gaudi Quarrell is the owner of GO Box, a reusable takeout food and drinkware service working to eliminate the need for single-use plastic disposables. Prior to funding GO Box, Jocelyn focused on sustainable transportation and mobility systems, working for Zipcar & Alta Bicycle Share, where she helped launch & expand bike-share systems in cities across the US.

Get In Touch:

LinkedIn Profile: linkedin.com/in/jocelyngaudiquarrell
LinkedIn Company Page: www.linkedin.com/company/goboxreuse
Company: goboxpdx.com

Additional resources:

  • Angels of Main Street is a community of investors with no minimum wealth or income requirement to join.  If you’d like to be part of a community of diverse investors who want to make a difference with their dollars, please join us in Angels of Main Street!

Episode Credit:

Intro and outro are voiced by Marina Verlaine. She can be contacted at reel.peach.vo@gmail.com

 

Check out past episodes here!