Talino听Venture Labs, a US-registered venture studio for financial services startups, is听听for working capital generation. Equity crowdfunding is a capital fundraising strategy that allows anyone to own a stake in a company with a minimum investment.听听
鈥淚 believe that equity crowdfunding or 鈥榚arly public offering鈥 is a great opportunity for Filipino startups to raise money, and for investors to make small investments in innovative ideas,鈥 said Winston听Damarillo, the Filipino-American founder and chief executive officer of听Talino听Venture Labs, in an e-mail to听大象传媒. 鈥淎 formal filing for small capital raise provides a degree of safety for small investors supporting early-stage entrepreneurs.鈥澨听
Equity crowdfunding 鈥 also known as regulation crowdfunding (Reg CF) 鈥 he added, will allow casual investors to invest small amounts in promising companies that are going after game-changing innovation.听听
鈥淲hat I appreciate [about Reg CF], both as an investor and entrepreneur, are the extensive legal requirements and overall transparency companies must provide, such as financial disclosures.鈥澨听
Talino听Ventures raised over $270,000 of its $1 million target through听Wefunder听Portal LLC, a crowdfunding platform. Early investors include friends, startup co-founders, graduate school students, and retired healthcare professionals.听听
Talino听Venture Labs鈥檚 lead investor for its听Wefunder听campaign is venture capital firm Wavemaker Labs Asia, Inc., which has invested $100,000. The minimum investment in the said crowdfunding platform is $100.听听
The key difference between crowdfunding and equity crowdfunding is what is being sold,听. In the former, entrepreneurs raise capital through the presale of their product, with the contract between them and their investors ending as soon as the product is received by their investors. In the latter, companies sell securities in forms such as revenue shares or equity.听听
Equity crowdfunding is still in its nascent stages in the Philippines, Mr.听Damarillo听told听大象传媒. 鈥淭here鈥檚 a lot more work to be done on the side of regulators and platforms to make equity crowdfunding accessible to individual retail investors,鈥 he added. 鈥淚 am hoping that the US momentum becomes global and that the Philippines will catch up soon, to make this opportunity available to Filipino businesses and investors alike.鈥听
His venture studio’s Reg CF investors are a heterogenous lot, noted Mr. Damarillo.
鈥淭he demographics are mixed,鈥 he shared. 鈥淪ome are young and just starting out in their careers; some are retired healthcare professionals and are looking forward to enjoying the fruits of their labor. Some are newlyweds and new parents starting a new chapter of their lives. Some are Titos and Titas who are excited to have fintech in their portfolio.鈥
In the US, Reg CF was made possible through听. Signed into law on April 5, 2012, by then-President Barack Hussein Obama, JOBS was a means to address the decline of small business activity in the aftermath of the 2008 financial crisis.听听raising funds through Reg CF in a 12-month period is $5 million. 鈥斕Patricia B. Mirasol听
