Put the Fun Back in Crowdfunding

Lexis Practical Guidance offers comprehensive coverage of crowdfunding regulation, procedures, and instruments. The Jumpstart Our Business Startups Act (or JOBS Act), Titles II, III, and IV have fundamentally expanded the options available for companies to raise investment capital, and these provisions have changed national securities laws. Titles II, III and IV of the JOBS Act are known as the crowdfunding provisions that authorize companies to solicit and consummate equity investments from the general public. These new crowdfunding mechanisms offer tremendous opportunity for issuers and investors alike, but the influx of less financially sophisticated investors to the private funds market also presents a danger. The legal practitioner who serves any issuers, funding portals, or investors in these offerings would be wise to exercise prudence, caution, and an abundance of care, as the SEC remains committed to investor protection and issuer oversight.

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Related Content

• Crowdfunding Instruments: Common Stock, Preferred Stock, Convertible Notes, and SAFEs
  Review this description of the various types of securities used in equity crowdfunding, outlining the pros and cons of each security, and explaining the reasoning behind its creation.

• Crowdfunding Intermediaries under the JOBS Act
  Read this discussion of the role of intermediaries (generally brokers or funding platforms) in Regulation Crowdfunding (Regulation CF) offerings.

• Regulation A Plus
  See this overview of recent updates to Regulation A of the Securities Act of 1933, which increase the cap on Regulation A offerings and make this provision easier to use in small business capital raising.

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