News & Analysis as of

Startups Securities Act of 1933

Ward and Smith, P.A.

Companies Seeking Capital—Be Wary of "Consultants" Who Want to Help

Ward and Smith, P.A. on

A significant part of our corporate practice is advising clients who want to raise capital.  For larger, institutional clients who attract the attention of reputable investment bankers, the process is straightforward....more

Holland & Knight LLP

Watts What You Say? SEC Brings a Battery of Charges Against EV Startup Company

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The SEC on Feb. 29, 2024, announced settled charges against Lordstown Motors Corp. (Lordstown) for allegedly misleading investors about sales prospects for the Endurance, Lordstown's flagship pickup truck for the electric...more

Lippes Mathias LLP

How to Motivate Your Team with Equity Compensation: What Startup Companies Need to Know

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Cash-strapped startup companies often find themselves looking for creative ways to engage and retain qualified people. One common way is to offer different types of equity compensation. ...more

Manatt, Phelps & Phillips, LLP

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

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

Proskauer - Blockchain and the Law

Issuers of Digital Securities May Benefit from Proposed Changes to Regulation A

In March, the Securities and Exchange Commission (SEC) announced proposed rule amendments to “harmonize, simplify, and improve the exempt offering framework to promote capital formation and expand investment opportunities...more

K&L Gates LLP

Congress Acts to Expand Capital Formation Rules While Rolling Back Dodd-Frank Regulation

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Since the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) was enacted in 2010, many Republicans have advocated for its repeal. However, in one of the first bipartisan banking laws to be adopted in...more

Pillsbury Winthrop Shaw Pittman LLP

Initial Coin Offerings (ICOs): The Current State of Play

The ICO boom in 2017 brings with it questions of jurisdiction and compliance, and a need for further guidance - The benefits of ICOs in raising capital, as well as in providing a marketing push for a new business model,...more

Blank Rome LLP

Crowdfunding Is Something Worth Explaining to Investors

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On October 30, 2015, the Securities and Exchange Commission (SEC) adopted new Regulation Crowdfunding to implement the requirements of the Jumpstart Our Business Startups Act. Regulation Crowdfunding prescribes rules...more

Morrison & Foerster LLP

SEC Proposes Rule Changes to Pave the Way for Intrastate and Regional Offerings

At the same time the Securities and Exchange Commission (the “SEC”) adopted rules implementing Regulation Crowdfunding pursuant to Title III of the Jumpstart Our Business Startups Act (the “JOBS Act”), the agency proposed...more

Goodwin

House Passes Act to Codify Section 4(a)(1½) Exemption for Resales of Restricted Securities

Goodwin on

On October 6, 2015, the U.S. House of Representatives unanimously approved the Reforming Access for Investments in Startup Enterprises Act of 2015 (H.R. 1839), also known as the RAISE Act of 2015. The RAISE Act has been...more

Mintz

Mintz TechConnect - October 2015

Mintz on

Letter from the Editors - We are thrilled to provide you with the first issue of Mintz Levin’s TechConnect, a bi-monthly newsletter on “all things technology” in the legal and business world, from our perspective, of...more

Morrison & Foerster LLP - JOBS Act

House Passes Two Bills Relating to Capital Formation

Today, the House passed two bills relating to the promotion of capital formation by smaller companies, H.R. 1525 and H.R. 1839....more

Carlton Fields

States Challenge SEC Regulation A+

Carlton Fields on

Massachusetts and Montana have taken the highly unusual step of suing the SEC over a recent amendment to Regulation A under the Securities Act of 1933. The SEC adopted "Regulation A+" (as the amended regulation is...more

Allen Matkins

NASAA Mistakes The Principal

Allen Matkins on

I have frequently commented on the fact that many so-called “investor protections” have the unintended consequence of increasing the risk of investor losses.  One example are limitations on resales.  An illiquid security is...more

Foley & Lardner LLP

What Do the Expanded Reg A+ Rules Mean for Your Company?

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This spring, the SEC adopted final rules required by the JOBS Act, which some hoped would increase smaller companies’ access to capital. Note, this wasn’t the long-awaited crowdfunding rules, it was the expansion of...more

Akerman LLP

The Florida Crowdfunding Act - An Attempt to Facilitate Capital Raising by Small Businesses in Florida

Akerman LLP on

"Crowdfunding" is the collection of small amounts of money from a large number of people to fund innovative projects, artistic endeavors, and non-profit political and charitable causes through the Internet. Over the past...more

K&L Gates LLP

HALOS in the Making: Helping Angels Lead our Startups Act

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On July 10, 2013, the Securities and Exchange Commission (“SEC”) adopted new rules to eliminate the prohibition against general solicitation and general advertising in certain securities offerings under Rule 506(c) of...more

Smith Anderson

Recent Developments for Intrastate Crowdfunding and Social Media Use

Smith Anderson on

In June 2013, the N.C. House of Representatives approved HB 680, the Jumpstart Our Business Startups Act (NC JOBS Act) by an overwhelming bipartisan vote of 103-1. Designed to utilize the “intrastate offering” exemption found...more

K&L Gates LLP

SEC Issues Rule Proposals to Amend Regulation A

K&L Gates LLP on

On December 18, 2013, the U.S. Securities and Exchange Commission (“SEC”) issued rule proposals to amend Regulation A, implementing an important part of Title IV of the Jumpstart Our Business Startups Act of 2012 (the “JOBS...more

Morgan Lewis

SEC Proposes Rules to Facilitate Small Business Financing

Morgan Lewis on

Introduction - On December 18, 2013, the Securities and Exchange Commission (SEC) proposed rules to enhance access to capital by smaller companies pursuant to its rulemaking mandate under Title IV of the Jumpstart...more

Baker Donelson

Small Business Securities Bulletin: By Popular Demand - SEC Proposes Crowdfunding Rules

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By way of background, pursuant to Section 5 of the Securities Act of 1933 (Securities Act) and state securities laws, any offer and sale of a security must be registered with the Securities and Exchange Commission (SEC) and...more

Dentons

Securities Implications Involved In Raising Money for Your Business

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Securities regulation in the United States followed several centuries of regulation in England. Brokers were licensed in England as early as 1285. All such regulation was aimed at the curtailment of dubious money-raising...more

Sands Anderson PC

The JOBS Act: Crowdfunding 1 – Introduction

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Many small-to-medium sized businesses urgently need equity capital but, because of legal restrictions and the expense of raising private venture capital, these firms often give up on traditional methods of capital raising. ...more

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