Accredited Investors

Two Recent SEC No Action Letters Establish Standards for Crowdsourcing Online Platforms Limited to "Accredited Investors" to Avoid...

by Daniel I. DeWolf, Steve Ganis, Jeremy D. Glaser, Melanie Ruthrauff | Mintz Levin - Corporate & Securities on 4/11/2013

In two recent no action letters, the Securities and Exchange Commission (the “SEC”) granted no action relief for two venture capital online funding platforms, the FundersClub, Inc. (“FundersClub”) and AngelList, LLC...more

Accredited Crowdfunding, Internet Advertising And General Solicitation

by Jill Radloff | Leonard, Street and Deinard - Dodd-Frank and... on 4/5/2013

The SEC recently granted two accredited crowdfunding sites exemptions from the broker-dealer rules because the type of carried interest (or close equivalent) used to compensate the site is not transaction based compensation. ...more

Crowdfunding Not Quite As Open As Recent Reports May Suggest

by Travis Crabtree | Looper Reed & McGraw, P.C. on 4/3/2013

My friends in the start-up community are excited about recent headlines suggesting the SEC has greenlighted crowdfunding. Leave it to the lawyer in the crowd to suggest they temper their excitement. As lawyers, we are used...more

The differences in unregistered securities offerings under Rule 506 and Crowdfunding

by The R. Bernard Law Group on 4/3/2013

When President Obama signed the JOBS Act almost a year ago it introduced a new era of startup financing. But until the SEC makes the required rules, the fundraising bonanza known as crowdfunding that will allow companies to...more

The SEC Staff Permits Sponsors of Securities Trading Platforms to Receive Incentive Compensation

by Robert Rosenblum | K&L Gates LLP on 4/2/2013

One of the goals of the JOBS Act was to encourage the development and use of platforms that permit accredited investors to invest in early stage and other private companies. The JOBS Act contains a provision that expressly...more

SEC Says Crowdfunding VC Site Not A Broker-Dealer

by Stephen M. Quinlivan | Leonard, Street and Deinard - Dodd-Frank and... on 3/28/2013

Thefundersclub.com operates a really cool website. The publicly available page advertises “The best way to invest in startups. Insider access to pre-vetted startups. Low minimum investment sizes. Free membership. Join...more

You Might Be Surprised By Who Counts (And Who Doesn’t) In California

by Allen Matkins Leck Gamble Mallory & Natsis... on 3/20/2013

Many issuers continue to rely on California’s limited offering exemption to avoid the necessity of qualifying the offer and sale of their securities. The exemption, found in Corporations Code Section 25102(f), requires that...more

Proposed Minnesota Investment Adviser Legislation

by David Jenson | Leonard, Street and Deinard - Dodd-Frank and... on 3/18/2013

There is a bill working its way through the Minnesota state legislature that amends chapter 80A of the Minnesota Statutes to, among other things, implement investment adviser registration for investment advisers whose only...more

Department Of Corporations Issues Crowd Funding Bulletin

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 3/18/2013

Last week, the Department of Corporations issued this bulletin which it styled as a “Crowdfunding Update”. The Bulletin makes several important points....more

Eureka! Bill Introduced To Homologate Finders

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 2/28/2013

Questions about the use of finders have bedeviled transactional lawyers for years. The need for finders is the unintended consequence of the federal and state securities law exemptions that are conditioned on the absence of a...more

New FAQs On Broker-Dealer Registration Exemption

by David Jenson | Leonard, Street and Deinard - Dodd-Frank and... on 2/8/2013

On February 5, 2013, the SEC released FAQs regarding Section 201 of the JOBS Act, which offers a new limited exemption from broker-dealer registration....more

Jumpstart Our Business Startups Act (JOBS Act) of 2012: SHOW ME THE MONEY!

by Victor Walker on 11/26/2012

The Jumpstart of Business Startups Act (JOBS Act) of 2012 has made it easier for Emerging Growth Companies to raise equity and debt with less SEC regulations and financial disclosures. For example Reg A+ allows you to raise...more

JOBS Act Update - SEC Proposed Rules for "Private Offerings" with Advertising Draw Fire

by Trenam Kemker on 10/23/2012

Regulation D offerings are a very important part of capital formation. In recent years, annual proceeds from Regulation D private offerings have totaled almost $1 trillion, approximately equal to the proceeds from all SEC...more

The Super Roth IRA[1] - Part 1

by Gerald Nowotny on 10/11/2012

The Roth IRA is the better-looking (and smarter!) cousin of the traditional IRA. The Roth IRA came into existence in 1997 as part of the Taxpayer Relief Act. The provision was named for Senator William Roth of...more

SEC Proposes New Rules under the JOBS Act

by Reed Smith on 10/4/2012

On August 29, 2012, the Securities and Exchange Commission (“SEC” or the “Commission”) proposed rules to implement section 201 of the Jumpstart Our Business Startups Act (the “JOBS Act”).1 The JOBS Act directed the SEC to...more

JOBS Act, Accredited Investors, and Flaming Hoops

by Davis Wright Tremaine LLP on 9/26/2012

I’ve heard it multiple times now, from angel investors and entrepreneurs alike, that the JOBS Act changed the definition of “accredited investor” in order to make it easier to be one. It’s as if President Obama and the...more

JOBS Act Updated: SEC Proposes Rules to Facilitate General Solicitation for Offers of Securities Under Rules 506 and 144A

by McCarter & English, LLP on 9/24/2012

The JOBS Act, signed into law in April, directed the Securities and Exchange Commission (SEC) to remove the prohibition against general advertising and solicitation in private placements conducted under Rule 506 and Rule 144A...more

JOBS Act Update: When a "Public Offering" Is Not a "Public Offering": The SEC Rule Proposal Eliminating the Ban on General...

by Orrick, Herrington & Sutcliffe LLP on 9/20/2012

Introduction: On April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was enacted. The stated objective for the JOBS Act is to improve access to the public capital markets for startup and emerging companies...more

JOBS Act: SEC Proposes Rules Regarding Solicitation and Advertising in Securities Offerings

by Katten Muchin Rosenman LLP on 9/11/2012

The Jumpstart our Business Startups Act (JOBS Act) directed the Securities and Exchange Commission to (1) remove the prohibition under Rule 502(c) of Regulation D against general solicitation and general advertising in...more

JOBS Act: SEC Proposes Rules Allowing General Solicitation and Advertising for Private Offerings and Sales of Securities Under...

by Perkins Coie on 9/10/2012

The SEC recently issued long-awaited proposed rules to remove existing general solicitation and advertising prohibitions for private offerings and sales of securities under Rule 506 and Rule 144A under the Securities Act of...more

SEC Announces Proposed Rules to Implement JOBS Act Provisions on General Solicitation and Advertising in Certain Securities...

by Thomas R. Leffler | Holland & Knight LLP on 9/10/2012

On August 29, 2012, the SEC announced proposed rules to eliminate the prohibition against general solicitation and general advertising in certain securities offerings. Under the proposed rules, which are mandated by the JOBS...more

SEC Proposes Rules to Implement JOBS Act Provision Regarding General Solicitation and Advertising in Securities Offerings

by Wilson Sonsini Goodrich & Rosati on 9/7/2012

On August 29, 2012, the Securities and Exchange Commission (SEC) proposed rules to implement Section 201(a) of the Jumpstart Our Business Startups Act (JOBS Act).1 Section 201(a) directs the SEC to amend Rule 506 of...more

Home

Legal News

Find a Lawyer

Browse Subjects

Subscribe

Pro Services

For Reporters