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Crowdfunding › Investors

Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including,... more +
Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -
Locke Lord LLP

Revisions to Chapter 517, F.S., the Florida Securities and Investor Protection Act

Locke Lord LLP on

Overview On May 10, 2024, the Florida Governor approved Senate Bill 532 (“SB 532”), which passed the Florida House and Senate by nearly unanimous vote (1 vote against in the Senate). SB 532 substantially revises Chapter 517,...more

Pillsbury - Propel

Crowdfunding: What It Is and When to Utilize It for Your Business

Pillsbury - Propel on

Crowdfunding emerged as a popular and innovative method of fundraising for startups, providing a platform for entrepreneurs to raise capital through soliciting relatively small individual investments or contributions from a...more

Barnea Jaffa Lande & Co.

Israeli Private Companies and Prospectus Obligations

Barnea Jaffa Lande & Co. on

A considerable number of Israeli private companies raise funds and approach prospective investors without a comprehensive understanding of the regulatory obligations mandated by the Securities Law. A pivotal provision in this...more

Farrell Fritz, P.C.

Revenue Participation Rights as a Crowdfunding Instrument Alternative

Farrell Fritz, P.C. on

The anti-child trafficking thriller “Sound of Freedom” just opened in theatres on July 4th.  Based on a true story, it stars Jim Caviezal as former Homeland Security special agent Tim Ballard who quits his job with the agency...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Holds that Social Media Posts May Give Rise to “Seller” Liability Under Section 12(a)(2) of the Securities Act of...

Sheppard Mullin Richter & Hampton LLP on

In Pino v. Cardone Capital, LLC, 2022 U.S. App. LEXIS 35278 (9th Cir. Dec. 21, 2022), the United States Court of Appeals for the Ninth Circuit (Lynn, J.) joined with the Eleventh Circuit in holding that a person may qualify...more

Mayer Brown Free Writings + Perspectives

Global VC Funding Trends in 2022 Q3

Mayer Brown Free Writings + Perspectives on

The CB Insights’ State of Venture Report for the third quarter of 2022 notes that global venture funding declined to $74.5 billion in the third quarter, down 58% from the funding peak in the fourth quarter of 2021. This...more

Mayer Brown Free Writings + Perspectives

Liquidity Challenges for Investors in Emerging Businesses

Mayer Brown Free Writings + Perspectives on

The US Securities and Exchange Commission’s (“SEC”) Small Business Capital Formation Advisory Committee (the “Committee”) released the agenda for its virtual meeting, to be held on Tuesday, August 2, 2022, and which plans to...more

Foodman CPAs & Advisors

How Money Received Through “Crowdfunding” May Be Taxable

Foodman CPAs & Advisors on

IRS may contact the recipients of crowdfunding campaign proceeds if not reported. IRS issues a soft alert to Taxpayers regarding their tax obligations for monies received under crowdfunding activities as well as the benefits...more

Troutman Pepper

FINRA Report Highlights New Topics and Emerging Risks for 2022

Troutman Pepper on

On February 9, FINRA published its 2022 Report on FINRA’s Examination and Risk Management Program (2022 Report), an authoritative resource for member firms to evaluate and, where necessary, enhance their compliance programs...more

Fox Rothschild LLP

SEC Expects Crowdfunding Portals to be 'Gatekeepers,' Not Ignore Red Flags

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The U.S. Securities and Exchange Commission is serious about regulating not only startups looking to raise money through crowdfunding portals, but the platforms themselves. Case in point: In September 2021, the SEC...more

Mintz Edge

Crowdfunding Considerations For Early Stage Companies

Mintz Edge on

The Securities and Exchange Commission (the “SEC”) amended and expanded its capital raising rules for Regulation Crowdfunding (“Regulation CF”) in November 2020, effective in March 2021, to increase the amount that a company...more

Goodwin

Delaware Court of Chancery Finds that Director’s Email on Outside Email System Remains Confidential

Goodwin on

Delaware Court of Chancery Finds that Director’s Email on Outside Email System Remains Confidential; Delaware Supreme Court Overrules Longstanding Precedent Regarding Derivative Versus Direct Standing; SEC Files Crowdfunding...more

Kilpatrick

The SEC Adopts Amendments to Regulation Crowdfunding

Kilpatrick on

On November 2, 2020, the Securities and Exchange Commission adopted amendments to expand Regulation Crowdfunding by increasing offering limits, revising certain investment limits and permitting the use of certain special...more

Sheppard Mullin Richter & Hampton LLP

SEC Adopts Rule Amendments Aimed at Expanding Access to Capital

Sheppard Mullin Richter & Hampton LLP on

On November 2, 2020, the Securities and Exchange Commission adopted amendments intended to ease the rules for certain exempt offerings. These changes include increasing the annual cap on equity crowdfunding from $1.07 million...more

Goodwin

SEC Stays Busy With Amendments And Extensions To Various Rules, Definitions And Disclosures

Goodwin on

In the News. The Securities and Exchange Commission (SEC) adopted final rules to update and expand the statistical disclosures that bank and savings and loan registrants must provide to investors for the first time in 30...more

Cooley LLP

Blog: Equity Crowdfunding – Is It For You?

Cooley LLP on

Entrepreneurs often ask whether equity crowdfunding is a viable option for funding their company. As is often the case with questions to an attorney, the answer is “it depends”. In 2012, when President Obama signed into law...more

Rosenberg Martin Greenberg LLP

Raising Capital Post-COVID-19 – What Now?

Rosenberg Martin Greenberg LLP on

Right about now, many business owners are asking themselves – what’s next?  How can I sustain my business?  Where can I obtain additional financing?  What if I need quick access to capital?  Am I out of options?...more

WilmerHale

In Case You Missed It: Launch Links - May 2020 #2

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Some interesting links we found across the web this week: How Can I Creatively Pay My First Employees? Having service providers work for “free” on a regular basis can lead to frustrated employees who cannot pay their...more

Morrison & Foerster LLP

SEC Temporarily Relaxes Rules For Small Business Crowdfunding Offerings

Morrison & Foerster LLP on

On May 4, 2020, the Securities and Exchange Commission (SEC) announced that it was providing temporary, conditional relief to established small businesses impacted by COVID-19 that will facilitate their ability to pursue...more

Kramer Levin Naftalis & Frankel LLP

SEC Proposes Rule Changes to Improve Private Placement Rules

Kramer Levin Naftalis & Frankel LLP on

On March 4, the Securities and Exchange Commission (the Commission) proposed a set of amendments to the rules and regulations under the Securities Act of 1933, as amended (the Securities Act), to simplify, harmonize and...more

Farrell Fritz, P.C.

Proposed Expansion of “Accredited Investor” Definition Would Benefit Issuers and Investors

Farrell Fritz, P.C. on

The Securities and Exchange Commission is proposing to expand the definition of “accredited investor” to include additional entities that could bear the economic risks of investment and certain financially sophisticated...more

Mayer Brown Free Writings + Perspectives

Annual Report of the Advocate for Small Business Capital Formation

Mayer Brown Free Writings + Perspectives on

The Office of the Advocate for Small Business Capital Formation published its annual report to the Committee on Banking, Housing and Urban Affairs of the U.S. Senate and the Committee on Financial Services of the US House of...more

Barnea Jaffa Lande & Co.

Seven Important Points before Fundraising through Crowdfunding

Barnea Jaffa Lande & Co. on

How Does Fundraising through Crowdfunding Work? Since December 2017, companies have been allowed to raise funds from the public in consideration for the sale of stocks or bonds. The idea at the base of this model is...more

Sullivan & Worcester

SEC Issues Concept Release on Harmonization of Securities Offering Exemptions

Sullivan & Worcester on

The SEC yesterday requested public comment on ways to simplify, harmonize, and improve the exempt offering framework to expand private investment opportunities while maintaining appropriate investor protections and to promote...more

A&O Shearman

UK Regulator Publishes Policy Statement on Peer-To-Peer and Investment-Based Crowdfunding Platforms

A&O Shearman on

The U.K. Financial Conduct Authority has published a Policy Statement containing its final changes to the rules and guidance governing loan-based crowdfunding platforms (or "peer-to-peer" platforms). The Policy Statement...more

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