News & Analysis as of September 22, 2024

Crowdfunding › The Jump-Start Our Business Start-Ups Act › Capital Raising

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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 -

Crowdfunding Report Shows Increasing Reliance on Regulation CF Deals & Disparities in Participation by Women & Minorities

Mayer Brown Free Writings + Perspectives on 5/14/2024

Introduced under Title III of the JOBS Act, Regulation Crowdfunding (“Regulation CF”) was promulgated to allow startups and emerging companies to raise capital from a wider pool of investors through equity crowdfunding...more

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

Fox Rothschild LLP on 2/8/2022

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

SEC Focused on Enforcement in the Crowdfunding Space

Troutman Pepper on 10/18/2021

Following last year’s drastic increase in the annual limits permitted for crowdfunding campaigns, the Securities and Exchange Commission (SEC) has increased its focus on the regulation of crowdfunding, particularly for...more

Relief for Pre-Verified Accredited Investors May Encourage Rule 506(c) Offerings

Farrell Fritz, P.C. on 2/16/2021

It’s pretty common for issuers in follow-on offerings to solicit investors from previous rounds first. Indeed, doing so is often mandatory when early investors have preemptive rights. ...more

Strict Traffic Rules for New Crowdfunding Vehicles – Part Three of Exempt Offering Amendments Deeper Dive

Farrell Fritz, P.C. on 1/11/2021

You just raised $1 million in your crowdfunding offering under Title III/Regulation CF. That’s the good news. The bad news? You now have over a thousand shareholders on your cap table, making it unwieldy, an administrative...more

Blog: Equity Crowdfunding – Is It For You?

Cooley LLP on 8/3/2020

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

COVID-19 Capital Needs Addressed by Temporary Relaxation of Title III Crowdfunding Rules

Farrell Fritz, P.C. on 5/19/2020

Title III crowdfunding may be an attractive capital raising alternative during the current Coronavirus pandemic because it allows companies to use the internet to solicit potential investors and not be restricted to...more

Heritage Foundation Hosts Discussion on the JOBS Act

Mayer Brown Free Writings + Perspectives on 11/16/2018

On October 23, 2018, the Heritage Foundation hosted a discussion entitled, “Problems with the JOBS Act and How They Can Be Fixed” that featured University of Kentucky College of Law Professor Rutherford B. Campbell....more

“Three’s A Charm”: House Adopts JOBS Act 3.0 To Fix Earlier Capital Raising Reform Efforts

Farrell Fritz, P.C. on 7/24/2018

t’s not often that the House of Representatives votes nearly unanimously on anything noteworthy these days, but that’s exactly what the House did on July 17 in voting 406-4 for the “JOBS and Investor Confidence Act of...more

Regulation Crowdfunding Surpasses $100 Million but Still Needs Reform

Farrell Fritz, P.C. on 2/20/2018

A recent report on the state of Regulation Crowdfunding published by a major crowdfunding advisory firm is cause for both celebration and renewed reform efforts. The $100 million aggregate funding milestone and the prorated...more

FAQ: What Businesses Need to Know About Investment Crowdfunding

Ward and Smith, P.A. on 11/9/2017

What is Crowdfunding? Crowdfunding is a marketing tool that businesses use to obtain capital from a large number of individuals, typically over the Internet....more

SEC Extends Key JOBS Act Benefit for All IPOs and Recently Public Companies

Fenwick & West LLP on 7/6/2017

On June 29, 2017 the U.S. Securities and Exchange Commission announced that it would permit all companies registering for an initial public offering to take advantage of the confidential review process that was previously...more

Orrick's Financial Industry Week In Review

Orrick, Herrington & Sutcliffe LLP on 4/14/2017

Financial Industry Developments - SEC Adopts Jobs Act Amendments - On April 5, the Securities and Exchange Commission ("SEC") announced that it has adopted amendments to increase the amount of money companies can...more

The JOBS Act at Five: Congressional Hearing Highlights Need for Further Reform

Farrell Fritz, P.C. on 3/27/2017

On March 22, the Subcommittee on Capital Markets, Securities, and Investment of the Financial Services Committee conducted a hearing entitled “The JOBS Act at Five: Examining Its Impact and Ensuring the Competitiveness of the...more

Crowdfunding or Private Placement Memorandum?

Gray Reed on 3/23/2017

Spurred by the frenzy of mid-century modern furniture of the 1950s and 1960s returning in popularity, a growing number of collectors are investing in and holding vintage furniture. Capitalizing on that craze, N. Stile Sune’s...more

TechConnect - Your Law Firm Link to Industry News - September 2016

Mintz on 9/29/2016

Letter from the Editors - Dear Readers, The world of raising capital for emerging companies has experienced a revolution. Prior to the enactment of the JOBS Act in 2012, raising capital for private companies was...more

Various Ways to Raise Capital

Mintz Edge on 9/21/2016

The world of raising capital has been evolving over the last several years. Offerings of securities generally used to fall into two main buckets: (i) private placements under the old Rule 506 or (ii) a public offering. With...more

Fix Crowdfunding Act and Venture Capital Bill Pass House

Stinson - Corporate & Securities Law Blog on 7/6/2016

The Fix Crowdfunding Act (H.R. 4855) passed the House of Representatives by a vote of 394 to 4. It doesn’t look much like the original bill we reported on here. As passed by the House, the bill allows special purpose...more

Court Rejects Regulation A+ Challenge

Stinson - Corporate & Securities Law Blog on 6/15/2016

The States of Montana and Massachusetts had previously challenged Regulation A+’s preemption of state securities registration and qualification requirements in Tier-2 offerings. The United States Court of Appeals for the...more

Regulation Crowdfunding: What You Need to Know

Lowndes on 6/10/2016

Regulation Crowdfunding, new rules promulgated by the SEC to assist small issuers in raising capital, became effective May 16, 2016. To assist issuers in their crowdfunding efforts, the SEC has issued the "Regulation...more

New Crowdfunding Rules Present Challenges and Opportunity

McNees Wallace & Nurick LLC on 5/17/2016

On May 16th, the U. S. Securities and Exchange Commission’s long-awaited rules known as “Regulation Crowdfunding” take effect, providing a revolutionary method for emerging companies to raise capital. The SEC’s adopting...more

Crowdfunding Begins With 17 Issuers

Stinson - Corporate & Securities Law Blog on 5/17/2016

Monday May 16, 2016 was the first day JOBS Act Title III crowdfunding could be used. Below are links to some portals and other information....more

The Equity Crowdfunding Rules: What You Need to Know

Foley & Lardner LLP on 5/5/2016

The SEC’s equity crowdfunding rules finally go into effect this month almost four years after Congress passed the JOBS Act, requiring the relaxing of certain rules on raising funds. So what does equity crowdfunding actually...more

2016 Venture Capital Report

WilmerHale on 3/28/2016

The 2016 Venture Capital Report provides an in-depth analysis of, and outlook for, the US and European venture capital markets. The report features industry and regional breakdowns, and a look at trends in venture capital...more

Fix Crowdfunding Act Improves JOBS Act

Stinson - Corporate & Securities Law Blog on 3/28/2016

The Fix Crowdfunding Act has been introduced by Representative Patrick McHenry, who was one of the architects of the FAST Act provisions simplifying securities laws. The Fix Crowdfunding Act increases the $1,000,000...more

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