Leading the pack
Back in February of this year, John Morgan, the Texas State Securities Board Commissioner, predicted that Texas would become a national leader in US crowd-funding investment. New crowd-funding regulations, explained Morgan, would allow Texas-based companies to generate up to $1 million per year.
We’re also warned to be “careful what we wish for”, but in this case it’s a good thing: Fast-forward to May 2016 and a recent article in the online journal Austininno seems to bear out that “Texas crowd funding efforts have generated $1.8 million in investments over the course of about a year and a half, and all that activity makes the state a national leader for this new type of funding businesses and projects.”
Commented Morgan, “We believe equity crowd-funding will catalyze new and wider prosperity, entrepreneurship and job growth in Texas.”
Do the math: With a population of more than 26 million, Texas is a massive market for companies wishing to raise capital through crowd-funding, [which serves] as a great gateway for all Texans to participate in funding growth in their communities and the state at large.
Playing by the rules
The key to Texas’ success is that intrastate crowd-funding allows non-accredited investors to invest up to $5,000 a year into one or more businesses and potentially get equity-based returns or interest from their investments. Businesses can generate up to $1 million from the crowd.
So far, 35 such offerings have been made in Texas, including six from Austin. In Austin, those include a group living development for tech workers, a kava bar, three tech startups working with Diversity Fund, and a restaurant.
Slow but sure
Despite all the activity, questions remain about how successful the efforts will be for both the businesses and their investors: Only 14 of the 35 fundraising efforts have reached their minimum investment marks. Only about 16 percent (roughly $1.8 million) of the $10.8 million that Texas businesses hope to collectively raise has been secured.
The website Altfi explains that Equity crowdfunding legislation in the US has been slow to develop. The industry as a whole is waiting for Title III of the JOBS Act, which will open up the industry to non-accredited investors.
When this act is passed it should release a huge amount of capital to small and medium sized businesses and provide a boost to the US economy.
A successful model
The most financially successful crowd-funding effort in Texas, so far, is the Chapman & Kirby gastrolounge that is planned as an event space and restaurant in downtown Houston. It has raised $440,800 from 134 investors. It seems to be a growth model that has worked: The offering is open to accredited investors, too, which means it may have generated investments of more than $5,000 from wealthier individuals.
GM’s new $3B commitment to Michigan means thousands of new jobs
(BUSINESS NEWS) GM is stepping up their electric vehicles investment with new factories and cars in the making. They are looking to the future and want to help build it.
On Monday, General Motors announced its $2.2 billion investment into its assembly plant located in Detroit-Hamtramck for the purpose of producing fully-electric SUVs and trucks. Additionally, the investment will go towards G.M.’s subsidiary, Cruise, for the development of a self-driving vehicle. Another invested $800 million will be used towards these future product launches.
The Detroit-Hamtramck assembly plant will the be first fully dedicated to electric vehicle production under G.M., creating over 2,200 job opportunities.
The following day, Cruise backed up its parent company by unveiling Origin, an electric driverless, ridesharing vehicle. Deemed “production ready”, Origin is designed similarly to a train car complete with sliding doors and seats facing each other. Cruise CEO Dan Ammann stressed the importance of low cost and the vehicle’s anticipated operation capacity of 1 million miles. These kinds of production stats show the company’s serious intention to change transportation in our cities.
G.M.’s investment comes on the heels of earlier December promises to fund development for mass production battery cells for electric vehicles with South Korean partner, LG Chem. That venture was also granted $2.3 billion by both companies and its own assembly plant to be constructed near Lordstown, Ohio later this year. 1,100 new jobs are expected to come out of the investment.
One of the largest obstacles to electric vehicle manufacturing is the cost of battery packs, deterring many mainstream consumers from electric vehicles. G.M.’s long-term plan is meeting this challenge head-on by fully creating electric vehicles to compete with cost of their internal combustion counterparts.
In a December press conference, G.M.’s chief executive, Mary T. Barra, acknowledged the company’s huge push into electric vehicle development by aiming to sell one million vehicles worldwide by 2026. The reason? “G.M. believes in the science of global warming,” she said. Perhaps another equally lucrative reason is the future of transportation is shifting towards electric models, and G.M. intends to carve out its own territory in this developing market.
How SmileDirectClub uses NDAs to silence bad reviews
(BUSINESS NEWS) SmileDirectClub wants to tell you, in the land of freedom of expression, how to talk about their service even if a dentist has to fix their mistakes.
Bad reviews can hurt any business, which is why many companies will go out of their way to ensure a customer is pleased. A restaurant might offer to replace a bad meal free of charge, for instance. A business might send customers additional free products to make up for any mistakes. SmileDirectClub, on the other hand, has taken a different approach to handling bad reviews: non-disclosure agreements.
SmileDirectClub is an aligners company that positions itself as a cheaper alternative to braces. It’s also an online company. All of this work is done remotely, with customers getting their aligners mailed to them. So, cheap and convenient. What’s not to love?
Well, turns out there might be trouble in paradise. According to an article by the New York Times, “SmileDirectClub has been the subject of more than 1,670 Better Business Bureau complaints since 2014.” In comparison, Invisalign, SmileDirectClub’s competitors, has only had five complaints over the last twenty years.
Many report that SmileDirectClub’s aligners don’t work and some have even claimed the aligners made things worse. Yeah, that’s right. Some people paid for SmileDirectClub just to turn around and have to pay an actual orthodontist just to get back to normal.
So, naturally, SmileDirectClub is having some customers sign NDAs, which according to the New York Times includes the following: “[customer] will not make, publish, or communicate any statements or opinions that would disparage, create a negative impression of, or in any way be harmful to the business or business reputation of SDC or its affiliates or their respective employees, officers, directors, products, or services.”
Non-disclosure agreements are just one way that big companies will try to silence bad reviews. Another method is to file a lawsuit for copyright infringement. GoPro attempted this method a few years ago. Companies can also claim that bad reviews are slander written in bad faith, which is a method many organizations have abused.
It’s possible for these sorts of lawsuits can backfire, but often, the time and money it takes for an average person to take on a big company aren’t worth it. People opt to simply take down their bad reviews instead.
For a country that values freedom of speech and a robust capitalist market, silencing critics (many of whom have legitimate things to say!) doesn’t seem in line with our beliefs. Not to mention, from a more practical standpoint, I’d sure like to know the potential risks or downsides of a product.
Especially when said product is supposed to replace dental work.
Asking the wrong questions can ruin your job opportunity
(BUSINESS NEWS) An HR expert discusses the best (and worst) questions she’s experienced during candidate interviews. it’s best to learn from others mistakes.
When talking to hiring managers outside of an interview setting, I always find myself asking about their horror stories as they’re usually good for a laugh (and a crash course in what not to do in an interview). A good friend of mine has worked in HR for the last decade and has sat in on her fair share of interviews, so naturally I asked her what some of her most notable experiences were with candidates – the good and the bad, in her own words…
“Let’s see, I think the worst questions I’ve ever had are typically related to benefits or vacation as it demonstrates that their priorities are not focused on the actual job they will be performing. I’ve had candidates ask how much vacation time they’ll receive during an initial phone screen (as their only question!). I’ve also had them ask about benefits and make comparisons to me over the phone about how our benefits compare to their current employer.
I once had a candidate ask me about the age demographics of our office, which was very uncomfortable and inappropriate! They were trying to determine if the attorneys at our law firm were older than the ones they were currently supporting. It was quite strange!
I also once had a candidate ask me about the work environment, which was fine, but they then launched into a story about how they are in a terrible environment and are planning on suing their company. While I understand that candidates may have faced challenges in their previous roles or worked for companies that had toxic working environments, it is important that you do not disparage them.
In all honesty, the worst is when they do not have any questions at all. In my opinion, it shows that they are not really invested in the position or have not put enough thought into their decision to change jobs. Moving to a new company is not a decision that should be made lightly and it’s important for me as an employer to make sure I am hiring employees who are genuinely interesting in the work they will be doing.
The best questions that I’ve been asked typically demonstrate that they’re interested in the position and have a strong understanding of the work they would be doing if they were hired. My personal favorite question that I’ve been asked is if there are any hesitations or concerns that I may have based on the information they’ve provided that they can address on the spot. To me, this demonstrates that they care about the impression that they’ve made. I’ve asked this question in interviews and been able to clarify information that I did not properly explain when answering a question. It was really important to me that I was able to correct the misinformation as it may have stopped me from moving forward in the process!
Also, questions that demonstrate their knowledge base about the role in which they’re applying for is always a good sign. I particularly like when candidates reference items that I’ve touched on and weave them into a question.
A few other good questions:
• Asking about what it takes to succeed in the position
• Asking about what areas or issues may need to be addressed when first joining the company
• Asking about challenges that may be faced if you were to be hired
• Asking the employer what they enjoy most about the company
• I am also self-centered, so I always like when candidates ask about my background and how my current company compares to previous employers that I’ve worked for. Bonus points if they’ve actually looked me up on LinkedIn and reference specifics :)”
Think about the best and worst experiences you’ve had during an interview – and talk to others about the same topic – and see how that can help you with future interviews.
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