Michigan just joined the growing number of states that have passed crowdfunding exemptions. Intrastate crowdfunding is a way for states to circumvent the log jam in the federal government. By allowing local investors to invest in local businesses, states like…
There comes a point in every idea when the Nay Sayers start to dominate the conversation, at least a part of the conversation. For the longest time Crowd Funding has escaped this fate by being on the fringe of investing,…
There is ongoing debate about crowd funding and the role it should play in the investment community. On the one hand are the protagonists who believe that there are many risks associated with opening up investment opportunities to the general public….
While there has been much ado about the viability of Crowdfunding, and the ongoing saga with the Securities Exchange Commissions (SEC) attempts to regulate the idea to death is perpetuating that cycle. Meanwhile several states have simply gone out and…
The SEC’s proposed crowdfunding rules include many sensible provisions but some that are completely contrary to the essence of crowdfunding. On page 107 of their 585 rule document, they list out a provision titled “Prohibition on Advertising Terms of the…
Perhaps it was with due reason and a sense of foresight that the founding fathers of America gave the States a great deal of autonomy. In light of the Jumpstart Our Business Startups (JOBS) Act, it would seem that their…
Happy 2014! We’re back with continued coverage of the SEC’s proposed crowdfunding rules and the industry in general. Crowdfunding will increasingly become a mainstream tool for businesses looking to raise capital. For companies that need short term funding it is…
Otto von Bismark once said “Laws are like sausages, it is better not to see them being made”. The Securities and Exchange Commission (SEC) has certainly lived up to that, rather ugly view of rulemaking, with the ongoing formulation of…
The SEC’s proposed crowdfunding rules also include information on how a company can work with and pay third parties. Broker dealers and sales people have regularly helped small businesses to raise money using private placement memorandums. Crowdfunding, thus far, has…
This week we will review the SEC proposed disclosure requirements for the “issuer” aka company or entrepreneur running a crowdfunding campaign. Unlike a public offering or a large private placement, a crowdfunding campaign is more likely to be ran by…
