New crowdfunding police not simply a concern for shady operators
Massachusetts has a new securities department devoted entirely to monitoring the investment crowdfunding industry. This is an important milestone for an industry that depends on a high level of public trust in order to thrive. The Internet Crowdfunding and Offering Watch Department, or I-CROWD, will initially focus on new Reg. D Rule 506(c) offerings. Effective […]
What due diligence looks like – Part 2: Checking the corporate form
The first installment of our Due Diligence Series addressed a fundamental issue in crowdfunding due diligence: making sure that the offered shares have been properly issued. This installment concerns an equally basic and essential issue: making sure that the company whose shares you are buying has been properly incorporated. There are many corporate forms a company can use, such […]
Let’s (NOT) make that video!
Hello, entrepreneurs! Are you busily working on that killer video you’re going to use to raise funds once crowdfunding is legal? Have you recruited top film talent to really sell your company and your terrific business plan? Will it be a tribute to your company’s stellar qualities? I hope not. I really hope not. Yes, […]
We have a law, so why should I wait?
We know, we know — it’s all so exciting! We’ve been waiting and watching as the first crowdfunding bill passed the House in November with an astounding 407 votes. Then we tried to sit tight through the holidays while everyone, including Congress, was on vacation (but sitting tight was difficult now that crowdfunding was so […]