Venture Capital Markets Association What it is. Why we need it. How to help.

Venture Capital Markets Association What it is. Why we need it. How to help. (Recently published in & Magazine Sep Oct ’13 , page 4) The new VCMA

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by David O’Brien Early in 2013, an entity came into being spurred by all of the regulatory nuisances the exchanges were placing in front of Venture Capitalists (VCs) in their determined efforts to place capital in potentially lucrative enterprises…that intended to ‘go Public’: the Venture Financial Crisis Committee, and its website It was co-founded by Joe Martin (of Cambridge House fame) and Don Mosher, an experienced investment consultant, with support from Tony Simon and Brian Ashton, both well-known in the mining investment arena over the past few decades. At several events this year, including their own self-sponsored event at the Four Seasons Vancouver, they started getting the word out about what ‘everyones’’ frustration was about. Mosher was interviewed by The Gold Report in a great little article “Strangulation by Regulation — Is the Venture Exchange on Its Deathbed?” which your author uploaded here: He argues vehemently against the stifling burdens literally blockading the investment community from opportunity. We’ve since seen a little feedback, or ‘reverberation’…some even objecting to the premises of his argument, however the overwhelming response has been a resoundingly positive endorsement of the difficulties he describes the industries’ players are facing in the current regulatory environment. As Brian Stewart of The Gold Report opines in his intro to Mosher’s interview “The TSX Venture Exchange, a once-thriving exchange for junior mining companies, is struggling. Its strife is a symptom of the overregulation that is slowly killing a whole sector of the Canadian economy, forcing mining companies and their servicers out of business or to move overseas.” Pretty strong stuff. Even in Mosher’s opening remarks his complaint has obvious merit “Take a capital pool company or even a junior initial public offering. It might raise from $200,000 ($200K) to $1 million ($1M), but about 40% of that goes to regulators, attorneys and accountants before it even gets a listing. The chances of success are very small when a company has to use that amount of capital right out of the gate, just to get a listing in place.” Another issue that came up recently is mentioned as well “The TSX came out in opposition to the latest regulation, which was the revocation of the Northwest Exemption by the British Columbia Securities Commission (BCSC). That could prohibit paying non-registered finders to raise capital from all sources of funding. The BCSC said that the impact on capital-raising would be about 1%, but the TSX Venture [Exchange] said it would destroy between $900M to $1.2 billion ($1.2B) of the $6B raised in 2012. That’s more than 1%. The Venture is starting to feel the pinch.” You can read John McCoach’s letter from the the TSX Venture Exchange Inc. to the BCSC here: Once again, please read the entire Mosher interview here: Since then, the group has grown in numbers, and many ‘players’ have put their money into the next phase: taking action! Thus, the formation of the Venture Capital Markets Association (VCMA), and, direct from their website under “About Us”, their mandate: “The VCMA represents public companies seeking a Canadian regulatory environment offering access to speculative investment opportunities and capital through fair securities markets that warrant public trust. It seeks to influence improvement in regulations to ensure that they are clear and easily understood and allows effective policing and enforcement.  Venture Capital is the job creator of the past, the present and for the future. Join the VCMA in stopping strangulation by regulation.Here, here! (oops, a little ‘editorial’ sneaking in there;=}) Well over 1,600 companies in the mining investment space at the beginning of the year, and many will not be here in 2014. That ‘bloodbath’ has also driven ‘risk-averse’ investors into the ‘safer’ investments, further compounding the inability of newly-formed companies to raise their ‘high-risk/high return’ Venture Capital. Disclaimer: David O’Brien is intimately involved in the sector, having had over 160 Participants in his International Mining Research Inc. programs of awareness-building at events, online and in print over the past 16 years, many of which he was also producing ad campaigns, marketing support materials and writing articles about the industry from his W.I.T. Marketing & Events agency. O’Brien is therefore not to be considered ‘unbiased’;=})


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