News & Analysis as of September 19, 2024

Crowdfunding › Registration Requirement

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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, 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 -

Recalibrating Regulation of Private Markets?

Mayer Brown Free Writings + Perspectives on 5/2/2022

In various public statements of late, representatives of the Securities and Exchange Commission have noted concern regarding the growth of the private markets. The statements have pointed to the fact that fundraising in the...more

On the right track: Securities & Exchange Commission adopts rules to streamline private offering exemptions

Eversheds Sutherland (US) LLP on 12/2/2020

On November 2, 2020, the Securities and Exchange Commission (the SEC) voted to adopt final amendments (the Amendments) to “simplify, harmonize, and improve certain aspects of the exempt offering framework.” The Securities Act...more

SEC Adopts Amendments To Exempt Offering Framework

Skadden, Arps, Slate, Meagher & Flom LLP on 11/16/2020

The Securities and Exchange Commission (SEC) recently adopted final rules that significantly revise the exempt offering framework, expanding access to capital markets for both issuers and investors. Key changes include the...more

SEC Harmonizes and Improves “Patchwork” Private Offering Framework

Mintz - Securities & Capital Markets... on 11/13/2020

On November 2, the SEC adopted amendments designed to harmonize and simplify the existing, complicated framework of private offering exemptions—the primary method by which private companies raise capital. The amendments...more

Raising Capital Through Private Placements: Rule 506(b) vs. Rule 506(c) Offerings

Manatt, Phelps & Phillips, LLP on 10/26/2020

Startups, and particularly first-time founders, typically find that raising funds is a significant, challenging and time-consuming process. There are many ways a founder can secure funding, including crowdfunding,...more

SEC Proposes Rule Changes to Exempt Offering Framework

Mayer Brown Free Writings + Perspectives on 3/6/2020

On March 4, 2020, the Securities and Exchange Commission (“SEC”) proposed amendments to the current framework of registration exemptions and safe harbors. ...more

SEC Issues Concept Release on Harmonization of Securities Offering Exemptions

Mayer Brown Free Writings + Perspectives on 6/26/2019

On June 18, 2019, the US Securities and Exchange Commission (SEC) issued a concept release soliciting “comment on possible ways to simplify, harmonize, and improve the exempt offering framework to promote capital formation...more

Is Reg A a Success?

Mayer Brown Free Writings + Perspectives on 8/14/2018

Neal Newman assesses the success of Regulation A in a paper titled, “Regulation A+: New and Improved after the JOBS Act or a Failed Revival?” The author reviews the 267 Regulation A filings made between August 13, 2012 and...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 Focuses on Initial Coin Offerings: Tokens May Be Securities Under Federal Securities Laws

Dechert LLP on 9/13/2017

The U.S. Securities and Exchange Commission (SEC) has recently taken several actions to make clear that it is focused on and actively monitoring the rapidly growing market for so-called “token sales” or “initial coin...more

California Lags Behind The SEC In Permitting Testing Of The Waters In Regulation A Offerings

Allen Matkins on 7/6/2017

In 2015, the Securities and Exchange Commission adopted amendments to Regulation A and other rules and forms to implement Section 401 of the Jumpstart Our Business Startups (JOBS) Act. One significant enhancement to...more

Final MNvest Rules Adopted

Stinson - Corporate & Securities Law Blog on 6/14/2016

On June 13, the final administrative rules implementing the MNvest intra-state crowdfunding exemption were adopted. The MNvest Rules were first proposed back in November of 2015. Yesterday's publication in the Minnesota...more

Shopping for Startups – SEC Offers Additional Guidance for Intermediary Crowdfunding Portals

BCLP on 4/15/2016

I previously wrote about the new rules of the Securities and Exchange Commission (“SEC”) allowing startups to utilize crowdfunding platforms to sell an equity stake in their business to investors in exchange for working...more

Regulation Crowdfunding – Funding Portals and Other Crowdfunding Intermediaries

Smith Anderson on 2/11/2016

Title III of the Jumpstart Our Business Startups Act (JOBS Act) created a new securities registration exemption for crowdfunding offerings by adding Section 4(a)(6) to the Securities Act of 1933 (the Securities Act). In late...more

SEC Approves FINRA Portal Rules, Forms for Crowdfunding Under Title III

Ballard Spahr LLP on 2/10/2016

The U.S. Securities and Exchange Commission (SEC) approved the Financial Industry Regulatory Authority, Inc.'s (FINRA) crowdfunding Portal Rules for companies that want to operate an intermediary “funding portal” pursuant to...more

JOBS Act Quick Start – A Brief Overview of the JOBS Act, 2016 Update

Morrison & Foerster LLP - JOBS Act on 2/1/2016

Many market participants were taken by surprise by the enactment of the Jumpstart Our Business Startups (JOBS) Act. The JOBS Act, HR 3606, was passed by the United States House of Representatives on March 8, 2012. On March...more

FINRA Amends Proposed Funding Portal Rules

Morrison & Foerster LLP - JOBS Act on 1/26/2016

On January 21st, FINRA filed an amendment to its proposed rule changes relating to the registration, supervision and oversight of crowdfunding funding portals. The Securities and Exchange Commission published a notice and...more

Joining the Crowd: SEC Adopts Final Crowdfunding Regulations - Part III - Intermediaries

K&L Gates LLP on 1/26/2016

On October 30, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules in the form of Regulation Crowdfunding to implement the securities-based crowdfunding exemption in Section 4(a)(6) of the Securities Act...more

Crowdfunders and Crowdfunding Service Providers Beware

Stinson - Corporate & Securities Law Blog on 11/30/2015

If you are planning to move into the crowdfunding consulting or platform area make sure you are familiar with the SEC broker-dealer rules, which require registration before performing broker-dealer services. If you plan on...more

"Corporate Finance Alert: SEC Finalizes Crowdfunding Rules, Proposes to Expand Intrastate Offering and Rule 504 Exemptions"

Skadden, Arps, Slate, Meagher & Flom LLP on 11/5/2015

The U.S. Securities and Exchange Commission (SEC) recently took several important steps to facilitate smaller securities offerings. First, it adopted final rules for the new Securities Act exemption for securities-based...more

Regulation Crowdfunding

Morrison & Foerster LLP - JOBS Act on 10/30/2015

On October 30, 2015, the SEC voted to adopt final rules permitting crowdfunding. Regulation Crowdfunding allows issuers to engage in securities-based crowdfunding through the internet pursuant to Section 4(a)(6) of the...more

Unlawful Crowdfunding? — SEC Institutes Public Administrative and Cease-and-Desist Proceeding Against Unregistered Broker-Dealer

Morrison & Foerster LLP - JOBS Act on 10/5/2015

In a proceeding on September 28th, the SEC ordered a public hearing to be held before an Administrative Law Judge within the next two months. Further, the SEC ordered the Respondent and two companies under his control, to...more

“A” is For Approved: SEC Finalizes Regulation A+, the Small Offering Exemption

Manatt, Phelps & Phillips, LLP on 4/1/2015

Securities lawyers had a “first time in forever” moment on March 25, when the U.S. Securities and Exchange Commission (SEC) voted to approve landmark reforms to its Regulation A, the so-called (and until now little-used)...more

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Crowdfunding › Registration Requirement

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