iVLG News Roundup Week 14 2014: IPO Market Heats Up in Early 2014; Imgur Raises Capital from Andreessen and Reddit; Crowdfunding and the Rule Making Debate
IPO Market Heats Up
The market for initial public offerings seems to be heating up announced the NY Times this week after Grubhub began selling stock publicly. Grubhub’s IPO price raised 40% in the first day of trading but has since waned. The Grubhub deal, which followed the earlier merger of Grubhub and its one time rival Seamless, was among other notable IPOs this year. Overall, the first quarter of 2014 has been very strong for IPOs and has some talking of a repeat of the dot com bubble era.
Imgur Doesn’t Need Money But Takes $40 million Anyway
Image sharing site Imgur received $40 million in funding from VC firm Andreessen Horowitz despite only 2 months ago saying they didn’t need the money. Andreessen Horowitz joined friend (and competitor) Reddit as the only investors in Imgur’s first investment round; the company has so far paid for its massive growth with cash flow. It seems that Reddit and Imgur may be competing to see who takes over who from the inside?
Non-accredited Investor Crowdfunding
The debate over rules drafting for Title III of the JOBS Act, often called “non-accredited investor crowdfunding” received press this week after a New York Times editorial criticized a lack of investor protection. This follows recent news that states, including Washington, have passed legislation to allow crowdfunding in some iteration of that envisioned under Title III of the JOBS Act, but limited to intrastate offerings. Our friend William Carleton gives well reasoned insight into the NY Times editorial and crowdfunding rule-making dual mandate generally on his Counselor at Law blog.
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