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... 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.
Crowd funding under the JOBS Act
Crowdfunding: What Is It? Who Will Use It? Is It Worth the Hype?—Fox Rothschild’s James Saksa
"[Crowdfunding] lays the riskiest investments at the doorstep of those investors that can least afford the risk. And it won’t create jobs except for plaintiff’s lawyers…”...more
It’s about one year since President Obama signed the Jumpstart Our Business Startups Act (the JOBS Act), designed to help new companies raise capital and go public. For individual investors the most troublesome provisions of...more
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
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
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
The Ontario Securities Commission (“OSC”) is actively taking steps to make capital raising easier for start-ups. In late 2012, the OSC published Staff Consultation Paper 45-710, seeking feedback on proposed new prospectus...more
At the recent Technicity conference in Toronto, Brad Duguid, Ontario’s Minister of Economic Development and Innovation, expressed support for introducing equity crowdfunding in Ontario. Recognizing the need to keep...more
Capital is the lifeblood of a growing tech company, and today access to that capital in the U.S. is improving thanks to recent regulatory and legislative initiatives. Growing tech companies now have an array of new...more
On August 29, 2012, the Securities and Exchange Commission (the “SEC”) released its first proposed rule for the implementation of the Jumpstart Our Business Startups Act (the “JOBS Act”): “Eliminating the Prohibition Against...more
In recent weeks, the SEC has given notice of matters that SEC Commissioners will consider at an open meeting on August 22, 2012, including: - general solicitation rulemaking required by Title II of the JOBS...more
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act (commonly referred to as the "JOBS Act"), which was designed to promote job creation by small companies and start-ups through the...more
When you think of crowdfunding, you think of Kickstarter—or at least many people do. The popular project-funding portal is the current face of crowdfunding and, while it gives people an easy picture of the über-hyped trend,...more
On April 5, 2012, President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. The JOBS Act seeks to reduce securities law burdens on start-ups and small businesses to make capital more accessible. In a...more
President Obama is scheduled to sign the JOBS (Jump Start Online Business Startups) Act today that includes provisions to relax the rules on raising capital for equity to allow for crowdfunding. See, sometimes the...more
A few days ago, someone posted a question on the Seattle Tech Startups email list about crowdfunding. The gist of the question was, “Hey, I’m seeing a bunch of advertisements for workshops on selling securities through...more
The President is in favor of crowdfunding, and is “calling for a national framework that allows entrepreneurs and small businesses to raise capital through crowdfunding. (See the President’s proposal here). This is...more
The Canadian Advanced Technology Alliance (CATA) has just launched a new campaign in support of changing Canadian securities laws to permit crowdfunding. See the news release here. Crowdfunding is the use of...more
Increasing the opportunities for startups to raise financing is all the rage in Congress. So, with the changes proposed by H.R. 2930, H.R. 2940, and S.1791, it might be easy to miss another important piece of legislation...more
The House of Representatives overwhelmingly passed HR 2930, the McHenry Crowdfunding Bill, in a 407-17 vote. First proposed in September of 2011, the McHenry Crowdfunding Bill went through just one revision in committee and...more
Connecting your business to small investors has never been easier in today's electronic age. Websites such as ProFounder.com, MicroVentures.com and PeerBackers.com make this possible. While crowdfunding platforms may have...more
On April 6, 2011, Mary L. Schapiro, Chairman of the Securities and Exchange Commission ("SEC") sent a letter to Darrell E. Issa, Chairman of the Committee on Oversight and Government Reform, responding to a March 22, 2011...more
JD Supra gets your content noticed, increases your visibility and makes your marketing efforts hassle free...
Learn More or Schedule a demo