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What Does the Future Hold for Crowdfunding Legislation?

Previous, I summarized the Entrepreneur Access to Capital Act (H.R. 2930) , a bill which provides for a crowdfunding exemption to the registration requirements of federal and state securities laws. The bill was recently passed by the U.S. House of Representatives, and now awaits U.S. Senate action...

Obama Reiterates Call for Regulation A Reform

As a follow up to his State of the Union address, Pres. Obama yesterday issued a press release calling for a number of initiatives to help small business. Among them, it said, "The President is calling to raise the offering limit under Regulation A from $5 million to $50 million, coupled with...

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....

The JOBS Act: Creating Jobs, or a Replay?

As the 1990s drew to a close Congress passed legislation signed by the President ensuring the deregulation of the derivatives markets. At the time CFTC Chairwoman Brooksley Born was one of the sole voices of dissent. Less than ten years that dissent proved prophetic as the most severe market crisis...

Senate Passes Modified JOBS Act - Regulatory Reform for Small and Emerging Growth Companies Speeds Closer to Fruition

On March 22, 2012, the Senate passed the Jumpstart Our Business Startups (JOBS) Act by a vote of 73-26. The House of Representatives passed the JOBS Act on March 8, 2012 by a vote of 390-23. The Senate bypassed its typical committee process to rush the bill to a floor vote. Legislators in both parties...

Final Senate Version of Crowdfunding

As we know, the Senate changed the version of the Jumpstart our Business Startups (JOBS) Act in only one way, they added an amendment, drafted by Sen. Merkley (but also supported by Sens. Bennet and Brown), which added more investor protections to the "crowdfunding" section of the bill...

Next Steps for the JOBS Act

The Jumpstart Our Business Startups Act, as amended by the Senate, was voted on by the House of Representatives yesterday and passed 380 to 41. That makes it a very bi-partisan bill, even though a ll 41 "Nays" were Democrats . If I remember my Schoolhouse Rocks song correctly, it's...

In Spite of What You May Have Heard, the Senate Just Effectively Killed Crowdfunding

This last week, the Senate passed the " JOBS Act ," leaving it one step away from final passage by Congress and Signature by President Obama. The JOBS Act contains a number of provisions which are aimed at reducing the securities compliance burdens of small companies and startups. One of...

The Impact of the JOBS Act on D&O Liability

On March 27, 2012, the U.S. House of Representatives passed the Jumpstart Our Business Startups Act (of the JOBS Act as it is more popularly known). President Obama is expected to sign the Act shortly. The Act is intended to facilitate capital-raising by reducing regulatory burdens. The Act also...

SEC Small Business Forum Gets Some Stuff in JOBS Act – Part I

Very recently the SEC published its final report on the SEC Government-Business Forum on Small Business Capital Formation from the November 17, 2011 event, which I attended in DC. Participants breathlessly await this report each year to see what recommendations make the hot list for the upcoming...

SEC Small Business Forum Gets Some Stuff in JOBS Act – Part II

In this part II, let's hit some key recommendations from the SEC Small Business Forum that did not make it into the JOBS Act and that advocates are still hoping will get some attention: Allowing "finders" in M&A and private offerings to have a simplified registration and...

Dick Phillips, Alan Berkeley and Stan Keller Discuss the JOBS Act.

On this edition, Dick Phillips and Alan Berkeley of K&L Gates and Stan Keller of Edwards Wildman discuss the JOBS Act (Jumpstart Our Business Startups Act), which was signed into law April 5 by President Obama. They provide an overview of the legislation and explore some of the controversies of the...

New York’s Carolyn Maloney More Focused On Politics Than Investors

With Democrats like Representative Carolyn Maloney of New York, who needs the Republicans? When special interests pursue self-interested legislation - or seek to block legislation that affects their interests - Maloney waves the jobs and economic growth flag for campaign contributors rather than...

You Cannot 'Crowdfund' a Fund (in Case You Were Wondering)

Crowdfunding may provide an interesting way for some companies to raise capital. It's definitely getting a lot of the hype since passage of the Jumpstart Our Business Startups ( JOBS ) Act earlier this month. I've read articles talking about how crowdfunding is going to disrupt funding for...

Crowdfunding Under the JOBS Act: The Bottom Line Impact on Private Equity Issuers and Market Intermediaries

by Jonathan B. Wilson and Dianne L. Trenholm Excerpt: On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (the "JOBS Act"), H.R. 3606, into law calling it "a potential game-changer" for startup companies. President Obama signed the JOBS Act just...

Crowdfunding: Who Will (and Who Won't) Be Doing It

Among the features of the recently enacted JOBS Act that has attracted the most attention are the legislation's provisions for "crowdfunding." Under these provisions, a company is permitted to raise up to $1 million during any 12-month period through an SEC-registered crowdfunding portal...

Emerging Growth Companies: You Have Been Warned

In order to try to boost the number of companies going public, the recently enacted JOBS act provides for certain procedural and reporting advantages for "Emerging Growth Companies," which are defined in the Act as companies within five years of their IPO and with revenues less than $1 ...

Crowdfunding to Build a Shareholder Base?

Today's DealFlow Report notes that Rodman & Renshaw's John Borer (disclaimer: client), a member of the SEC's Advisory Committee on Small and Emerging Companies, stunned his fellow committee members recently. He suggested that crowdfunding could be used as a way to "populate"...

Interesting #Crowdfunding Wrinkle

As mentioned below, there was a recent view expressed that #crowdfunding can be used to build a shareholder base for a company about to go public, avoiding the need to build that base in a retail (vs. institutional) public offering or through a shell. But there's a slight wrinkle. The language...

A Masterstroke of Some Kind: Crowdfunding and the JOBS Act

"Everyone agrees the title was a work of pure genius," says Dick Phillips of K&L Gates in a recent podcast , referring to the Jumpstart Our Business Startups (JOBS) Act. "It's impossible to vote against in an election year." When a law is so well named, it's important...

Lifeline or Rising Tide? Understanding Emerging Growth Companies under the JOBS Act

Laws don't often get their own parties. But for the irresistibly named Jumpstart Our Business Startups (JOBS) Act, President Obama held a rare public ceremony in the White House's Rose Garden in its honor. Even more notably, this party was quite bipartisan-Republican House Majority Leader...

The JOBS Act, a Year Later – Part 4: Online Angel Investment Platforms

This post is the fourth 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 online angel investment platforms. In the last post of this series , I discussed the progress of implementing the...

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...

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...

The JOBS Act, a Year Later – Part 7: Titles V and VI and Concluding Thoughts

This post is the seventh and final in a series examining the impact of the Jumpstart Our Business Startups Act (or JOBS Act) one year after its passage and focuses on Titles V and VI of the law and provides some final concluding thoughts. Titles V and VI of the JOBS Act are closely related in ...