Business Monday

Q&A / Digital Debrief

Building a case for crowdfunding

 

Sherwood Neiss has helped lead the effort to help small investors fund start-up businesses.

 

Sherood Neiss, principal at Crowdfund Capital Advisors in Miami, has helped change federal securities laws about investing.
Sherood Neiss, principal at Crowdfund Capital Advisors in Miami, has helped change federal securities laws about investing.
Al Diaz / Miami Herald Staff

Sherwood Neiss

Position: Principal at Crowdfund Capital Advisors, Miami.

Age: 43

Grew up: New Canaan, Conn.

Lives: Miami Beach, since 2004

Education: B.A. in Japanese and Political Science from Tulane University; International MBA from Thunderbird, American Graduate School of International Management.

Previously worked: Paine Webber in New York, Ernst & Young and PeopleSoft in San Francisco, before co-founding FLAVORx in Washington, D.C.

Favorite saying: "The truth is not for all men, but only for those who seek it." -Ayn Rand.


icordle@MiamiHerald.com

Q. What impact can crowdfunding have in South Florida?

Since crowdfunding is based on community financing we think it will have a tremendous impact here in South Florida.

There are a few reasons for this. First, South Florida isn’t known for capital formation so crowdfunding will allow the community to step in where the banks and Wall Street have stepped out

Second, South Florida is full of some of the most entrepreneurial people in the United States. There are many people and cultures here and entrepreneurs who have innovative products and services have a market for these ideas.

Third, crowdfunding takes a strong community. Unlike many other communities across the country, South Florida has a strong Latin community. Latins are very family oriented and are used to rallying around loved ones. Crowdfund investing will allow these communities to finance their loved ones and play an active role in their success.

We believe that South Florida will be one of the success stories for crowdfund investing and create thousands of jobs here.

Q. Describe your company, Crowdfund Capital Advisors.

Crowdfund Capital Advisors is a five-person consultancy firm that works to develop a global crowdfunding ecosystem. We advise crowdfunding platforms like Crowdfunder and Seedinvest, broker/dealers like Gate Technologies and third party providers like Crowdnetic and EarlyIQ. We work closely with the law firm Ellenoff, Grossman & Schole, which is a firm focused on crowdfund investing.

We were retained by Wiley to write Crowdfund Investing for Dummies, which will come out in March 2013.

We are partners with the U.S. State Department’s Global Entrepreneurship Program and founders of the Program for Innovation in Entrepreneurial and Social Finance at University of California Berkeley.

Since most countries follow U.S. security laws, governments globally are interested in learning what we did, how we did it and what it can mean for them. We have visited and worked with the governments and stakeholders in Mexico, Colombia, Turkey, Canada, the United Arab Emirates and Italy on their crowdfund investing programs.

We expect to triple in size this next year.

Q. What is the next step?

Our next step is to continue take our framework global. We are exploring projects in the Middle East, Asia and South America.

We sincerely believe that if we can promote entrepreneurship and innovation via crowdfund investing we will give local communities a vested interest in the success of their entrepreneurs. They will create jobs that will stimulate economies regionally.

If we get it right we can deploy capital for good. Doing so can provide stability to regions like the Middle East where political unrest comes in part to high unemployment. Essentially we believe that we can promote peace through crowdfunding. A lofty goal, but then again, isn’t having a vision what being an entrepreneur is all about?

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