Banking and Finance

Recent Posts

First Enforcement Action Taken Against Crowdfunding Site
Posted on 18 Sep 2013 by Alexander Davie

For the first time, regulators are taking action against one of the many crowdfunding sites that have sprung up since the passage of the JOBS Act. The Ohio Division of Securities issued a notice of intent to issue a cease-and-desist order against the... Read More

Let’s Give Title III Crowdfunding a Chance
Posted on 4 Nov 2015 by David N. Feldman

It was in many ways the centerpiece of the Jumpstart Our Business Startups (JOBS) Act of 2012. At the signing ceremony all the President could talk about was the idea of “bringing Wall Street to Main Street.” And while the JOBS Act has many... Read More

Crowdfunding and EB-5: What Insights do the New SEC Rules Offer for EB-5 Practice?
Posted on 8 Nov 2013 by Yi Song

On October 24, 2013 the Securities and Exchange Commission (SEC) released the proposed rules governing crowdfunding, which is an evolving method of raising capital through Internet and social media websites. Title III of the “Jumpstart Our Business... Read More

The Case of SoMoLend: Crowdfunding Platforms and Other Startups Beware of Potential Securities Law Violations
Posted on 4 Sep 2013 by Arina Shulga

SoMoLend – Social Mobile Local Lending – is a crowdfunding platform that has peer-to-peer lending technology that allows businesses to obtain loans from a network of lenders, typically located in the same geographic area (banks, credit unions... Read More

SEC Releases Proposed Crowdfunding Rules
Posted on 24 Oct 2013 by Kevin M. LaCroix

On October 23, 2013, the SEC finally approved (unanimously) and released for public comment the proposed rules implementing the crowdfunding provisions of the JOBS Act. The rules will not become effective, subject to any revisions, until the end of a... 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

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

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