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JOBS Act: What Matters Most for Startups and VCs
Posted on 14 Jun 2012 by Trent Dykes

The Jumpstart Our Business Startups Act (the JOBS Act), enacted in April this year, makes a variety of significant changes to securities laws, some of which relate to early-stage entrepreneurs, startup companies and venture capitalists concerned about... Read More

Crowdsourcing the Crowdfunding Exemption
Posted on 8 Feb 2012 by Doug Cornelius

There is a growing movement to create a new crowdfunding regime for raising capital. The models seem to draw inspiration from Kickstarter , a platform to fund creative projects. I say that because each time I see a draft bill it talks about an internet... Read More

New Era of Capital Raising: Sorting Through the JOBS Act’s New Capital Raising Rules
Posted on 24 Jul 2015 by Sands Anderson PC

by David Carroll Since the enactment of the Jumpstart Our Business Startups Act (the “JOBS Act” ) in 2012, the Securities and Exchange Commission (“ SEC “) has slowly been making its way through the titles to the JOBS Act to... Read More

Which Crowdfunding is Which? A Primer
Posted on 25 Mar 2014 by David N. Feldman

Many seem a little confused by the flurry of regulatory activity in Congress and the SEC the last few years when it comes to small business and capital formation. Regulation D? Regulation A? Kickstarter? Crowdfunding? Which is which? Here’s a few... Read More

Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part II. What is Crowdfunding and Three Crowdfunding Models
Posted on 11 May 2011 by Arina Shulga

Crowdfunding is a method of raising funds for a business venture or a project by requesting a small amount of money from a large number of people (typically through the Internet). An average amount of money raised is between $2,000 and $10,000. Crowdfunding... Read More

Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part IV: Who is an Ideal Candidate for Crowdfunding?
Posted on 26 May 2011 by Arina Shulga

In this post, I would like to summarize the information I posted previously about crowdfunding and discuss the kind of company or individual that would benefit the most from this type of financing. In the donor-based model of crowdfunding, it would be... Read More

Real Estate Crowdfunding
Posted on 12 Jan 2015 by Arina Shulga

When speaking about equity-based crowdfunding, the U.S. securities laws do not differentiate among different uses of proceeds derived from raising funds through crowdfunding portals. The same securities laws apply to real estate crowdfunding as to crowhdfunding... Read More

SEC Crowdfunding Rule Proposal to be Announced Next Week
Posted on 21 Oct 2013 by David N. Feldman

Bloomberg reports today that the SEC plans to announce long-awaited proposed rules on “crowdfunding” next week. There is no notice yet on the SEC website, but apparently the news outlet heard from those in the know. The Jumpstart our Business... Read More

Legal Aspects of Crowdfunding
Posted on 24 Jun 2011 by Arina Shulga

Today, I would like to discuss regulatory aspects of crowdfunding. There are several proposals now that aim to change existing regulation to provide small businesses with easier access to capital markets. One such proposal comes from the Sustainable... Read More

The JOBS Act, a Year Later – Part 5: Crowdfunding
Posted on 31 May 2013 by Alexander Davie

This post is the fifth in a series examining the impact of the Jumpstart Our Business Startups Act (or JOBS Act) one year after its passage and focuses on the provisions related to crowdfunding. Previously in this series, I discussed the progress... Read More

Creative Alternative Financing – Crowdfunding & Crowdsourcing: Part I
Posted on 9 May 2011 by Arina Shulga

On May 3, 2011, I participated in the panel discussion titled "Creative Alternative Financing - Crowdfunding & Crowdsourcing" at the 2011 MBE Annual Meeting organized by New York & New Jersey Minority Supplier Development Council. I... Read More

Recent SEC Interpretations Facilitate Intrastate Crowdfunding
Posted on 14 Oct 2014 by Andrew Ledbetter

The SEC has recently issued interpretations regarding Rule 147 . This rule provides a safe harbor under Section 3(a)(11) of the Securities Act of 1933, as amended, which exempts from federal registration securities offered and sold only to persons resident... Read More

SEC Adopts Final Crowdfunding Rules
Posted on 2 Nov 2015 by Kevin M. LaCroix

On October 30, 2015, by a 3-1 vote, the SEC adopted final rules to permitting small companies to raise funds by selling shares to the investing public through crowdfunding offerings conducted on Internet fundraising portals. In this long-awaited vote... Read More

Crowdfunding Right Now (Fund Model, Broker-Dealer Model, Lending Platforms and Intrastate Offerings)
Posted on 7 Aug 2014 by Arina Shulga

We are still waiting for the SEC to issue final rules with respect to the Title III crowdfunding that will allow the U.S. companies to issue up to $1 million in securities to non-accredited investors through the online funding portals. So, while we are... Read More

  • Blog Post: Creative Alternative Financing – Crowdfunding & Crowdsourcing: Part I

    On May 3, 2011, I participated in the panel discussion titled "Creative Alternative Financing - Crowdfunding & Crowdsourcing" at the 2011 MBE Annual Meeting organized by New York & New Jersey Minority Supplier Development Council. I was honored that my co-panelists were David Rose,...
  • Blog Post: Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part II. What is Crowdfunding and Three Crowdfunding Models

    Crowdfunding is a method of raising funds for a business venture or a project by requesting a small amount of money from a large number of people (typically through the Internet). An average amount of money raised is between $2,000 and $10,000. Crowdfunding is not a new phenomenon. We have seen it...
  • Blog Post: Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part IV: Who is an Ideal Candidate for Crowdfunding?

    In this post, I would like to summarize the information I posted previously about crowdfunding and discuss the kind of company or individual that would benefit the most from this type of financing. In the donor-based model of crowdfunding, it would be a person or a team with a creative novel idea, something...
  • Blog Post: Legal Aspects of Crowdfunding

    Today, I would like to discuss regulatory aspects of crowdfunding. There are several proposals now that aim to change existing regulation to provide small businesses with easier access to capital markets. One such proposal comes from the Sustainable Economies Law Center (SELC). In July 2010...
  • Blog Post: Crowdsourcing the Crowdfunding Exemption

    There is a growing movement to create a new crowdfunding regime for raising capital. The models seem to draw inspiration from Kickstarter , a platform to fund creative projects. I say that because each time I see a draft bill it talks about an internet-based intermediary as part of the exemption....
  • Blog Post: JOBS Act: What Matters Most for Startups and VCs

    The Jumpstart Our Business Startups Act (the JOBS Act), enacted in April this year, makes a variety of significant changes to securities laws, some of which relate to early-stage entrepreneurs, startup companies and venture capitalists concerned about fund raising with respect to their portfolio companies...
  • Blog Post: Crowdfunding Update for May 2013

    We are still patiently waiting for the SEC to develop rules implementing the crowdfunding provisions of the JOBS Act. While we are waiting, the industry prepares for the crowdfunding transactions. Recently, two interesting articles about crowdfunding caught my attention. First, thecrowdcafe.com...
  • Blog Post: The JOBS Act, a Year Later – Part 5: Crowdfunding

    This post is the fifth in a series examining the impact of the Jumpstart Our Business Startups Act (or JOBS Act) one year after its passage and focuses on the provisions related to crowdfunding. Previously in this series, I discussed the progress of implementing the JOBS Act, specifically Titles...
  • Blog Post: SEC Crowdfunding Rule Proposal to be Announced Next Week

    Bloomberg reports today that the SEC plans to announce long-awaited proposed rules on “crowdfunding” next week. There is no notice yet on the SEC website, but apparently the news outlet heard from those in the know. The Jumpstart our Business Startups (JOBS) Act of 2012 mandated that the...
  • Blog Post: Overview of Proposed SEC Crowdfunding Rules

    by Trent Dykes and Nathan Luce Earlier today, the Securities and Exchange Commission (SEC) took an important step in making securities-based crowdfunding a reality for many small companies with the release of its proposed rules governing crowdfunding. The proposed rules, called “Regulation Crowdfunding...
  • Blog Post: Thoughts on the Proposed Crowdfunding Regulations

    On October 23, 2013, the Securities and Exchange Commission issued proposed regulations to implement Title III of the JOBS Act, which will allow for the public sale of securities using crowdfunding under an exemption from registration under securities laws. Since it has been some time since the regulations...
  • Blog Post: Which Crowdfunding is Which? A Primer

    Many seem a little confused by the flurry of regulatory activity in Congress and the SEC the last few years when it comes to small business and capital formation. Regulation D? Regulation A? Kickstarter? Crowdfunding? Which is which? Here’s a few sentences so you can keep a scorecard: Kickstarter...
  • Blog Post: Crowdfunding Right Now (Fund Model, Broker-Dealer Model, Lending Platforms and Intrastate Offerings)

    We are still waiting for the SEC to issue final rules with respect to the Title III crowdfunding that will allow the U.S. companies to issue up to $1 million in securities to non-accredited investors through the online funding portals. So, while we are all waiting, crowdfunding in the U.S. is alive and...
  • Blog Post: Recent SEC Interpretations Facilitate Intrastate Crowdfunding

    The SEC has recently issued interpretations regarding Rule 147 . This rule provides a safe harbor under Section 3(a)(11) of the Securities Act of 1933, as amended, which exempts from federal registration securities offered and sold only to persons resident within a single state or territory, in which...
  • Blog Post: Crowdfunding Portals and the Securities Laws

    The SEC has recently intensified its enforcement efforts against crowdfunding portals. The SEC's main focus is on these two legal issues: whether the crowdfunding portals offer and sell securities in unregistered transactions to US persons in violation of the Securities Act, and whether the crowdfunding...
  • Blog Post: Real Estate Crowdfunding

    When speaking about equity-based crowdfunding, the U.S. securities laws do not differentiate among different uses of proceeds derived from raising funds through crowdfunding portals. The same securities laws apply to real estate crowdfunding as to crowhdfunding campaigns with a goal of investing into...
  • Blog Post: State Crowdfunding Surges Ahead

    Let’s give one to the states. Often in their attempt to regulate securities offerings we find states a source of delay and frustration. However, given the snail’s pace at which the SEC is implementing crowdfunding rules mandated by the Jumpstart our Business Startups (JOBS) Act of 2012, many...
  • Blog Post: New Era of Capital Raising: Sorting Through the JOBS Act’s New Capital Raising Rules

    by David Carroll Since the enactment of the Jumpstart Our Business Startups Act (the “JOBS Act” ) in 2012, the Securities and Exchange Commission (“ SEC “) has slowly been making its way through the titles to the JOBS Act to promulgate the final regulations for implementation...
  • Blog Post: SEC Adopts Final Crowdfunding Rules

    On October 30, 2015, by a 3-1 vote, the SEC adopted final rules to permitting small companies to raise funds by selling shares to the investing public through crowdfunding offerings conducted on Internet fundraising portals. In this long-awaited vote, which represented the last remaining significant...