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...
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
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...
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...
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.
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...
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...
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...
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
One such proposal comes from the Sustainable...
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...
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...
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...
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...
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...