Category Archives: Uncategorized

B.C. Entrepreneurs Turn to Crowd-Funding

social_mediaB.C. Entrepreneurs Turn to Crowd-Funding For New Ways of Financing Startups | BC Business #HealthyCrowdfunder. Click here for article  http://ow.ly/oER39

Comments to Jacob Parry’s article

Please note my comments to Jacob’s article and specified the distinction between accredited and non-accredited investor crowd. Note how we will apply best practices when managing publicly listed companies to private companies. We are simply reinventing the public capital markets. As soon as we involve the crowd, everything is public. As soon as we use OPM – other people’s money, they are entitled to timely full disclosures and best practices of publicly listed companies. We will slash down regulatory compliance costs through use of proprietary technology.

Antonio (Tony) Arias

Jacob – thanks for covering our mission to advance equity based crowdfunding. I wish
to emphasize we are targeting accredited investors first while building a
health fund and the Healthy Crowdfunder platform.

Educating investors about the risks, co-managing and co-developing our investees until
the exit date, and developing proprietary algorithms are some of our
competitive edge.

At our recent crowdfunding meetup I spoke about how Mr Algorithm (high
frequency traders) has taken over the stock exchanges at the expense of SMEs’
access to capital and liquidity. The best antidote is algorithm itself combined
with our creative and entrepreneurial skills. The securities regulators and
securities rules are so far behind what technology can do now. One of our jobs
is to prove to them that technology itself is one of the best weapons against
fraudulent actors. Several KYC (know your clients) and KYP (know your products)
job routines can be automated. Algorithm can also detect anything that is out
of pattern. Think IBM’s Watson.

The broker/ dealers provide only a partial investor protection. The buck stops at
the CEOs, CFOs, and independent directors who report to shareholders, who stand
to lose the most if they don’t perform their fiduciary duties to shareholders.
As the strategic advisers and co-managers of these ventures, we will provide
better protection since for each investee, we are investor/shareholders ourselves.

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Filed under For Entrepreneurs, For Investors, Uncategorized

Top CEO Leadership Secrets

For Mukesh Ambani, Chairman & MD of Reliance Industries, and one of Asia’s richest men, “leadership is about soul, heart, and mind. ‘Soul’ is what you believe in – your values. Everyone’s values are different; it’s not necessary to converge on them. ‘Heart’ is your passion – it gives you the courage to build something and compassion and the other qualities that define who you are. The last and least is ’mind’ – your competences.” http://ow.ly/nBwab

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Filed under For Entrepreneurs, healthycrowdfunder general, Uncategorized

Protect Equity Crowdfund Investors by Strong Corporate Governance

By Antonio Arias

STOP FRAUDAs the former CFO or Audit Committee Chairman of publicly listed companies, I have resigned three times in my career to protect the shareholders’ interest. Most of my professional accountant colleagues laud the decision but others have frowned on my “radical” position. After all, taking that position means cutting my income. At one time, a CEO even tried to lure me with stock options to change my position. In all cases, I have challenged the CEO to resign or I resign.  Each one had rather have me leave. Consequently, I have won investors as friends for standing out for them and eventually the guilty CEOs had to resign.

This weekend I read an article by Mr Gwyn Morgan, former chairman of SNC-Lavalin, who has recommended corporate governance changes I have been advocating for quite some time. The business practices of the public corporate world is fraught with conflict it seems the entire system is too blind to accept the realities of commercial greed.

Here are some of Mr Morgan’s  recommendation   as written in  Globe& Mail: What I Learned from SNC Lavalin Woes (Gwyn Morgan)

Information is key

Because directors get most of their information from people within the company, they need to do everything they can to build and diversify their sources. There should be a robust whistle-blower system, independent of management, so employees can pass on information to directors without fear of reprisal.

Financial reporting structures matter

Internal auditors should report directly – and only – to the chair of the audit committee, not to management. The chief financial officer should have a direct reporting relationship to the audit committee chair. Operating division comptrollers should report to the CFO, not to the division leader or the business-unit head.

Focus on leadership

It’s important to have strong financial controls and ethical codes, but they will fail unless all people in leadership roles, from the CEO on down, follow them diligently and consistently.

Culture, culture, culture

It is said that corporate culture is defined by how people act when no one is looking. But it is also defined by how employees react when they see behaviour that is inconsistent with the values of the organization. When their reaction is, “We’re not going to let this happen in our company,” the organization is built upon a solid ethical foundation.

What does this mean for Equity Crowdfunding?

At Healthy Crowdfunder, we will manage our client-investees, by applying strong corporate governance. As co-investors, our interests will be aligned with all shareholders. A strong fraud prevention system relies on strong corporate governance policies and practices, championed by the CEO and independent board of directors.

The SECs of the world should put the onus of protecting investors in the hands of those who have the most to lose – the independent board of directors who hires the CEO and its top executives. The cost of investor protection should be proportionately related to the amount of money at risk. The larger the amount the stricter the controls. Technology is already here to mitigate some of those risks.  Let’s use it.

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Filed under For Investors, Securities law change campaign, Uncategorized