SEC proposes a new type of exempt offering under Regulation D
After months of delay and some drama, the Securities and Exchange Commission voted today to propose for public comment rules establishing a new type of offering that is not required to be registered with the SEC. New Rule 506(c) would permit any size of offering to be made using any form of “general solicitation or […]
US companies crowdfunding abroad: you might want to pack a securities lawyer alongside your umbrella!
It’s frustrating. We are all so ready to do crowdfunding. But we have to wait till the SEC and FINRA come up with their rules. Some US companies can’t wait and they have gone off to seek their fortunes (or at least funding) on foreign crowdfunding portals. Companies thinking of following them should make sure they have […]
The CrowdFunding Olympics
I’m a proud Brit and a proud Virginian (version 1.0) and I see no contradiction there. But it’s as a Brit I’m blogging today. I watched the Olympic Opening Ceremony on Friday night with some Indian and English friends (also Americans 1.0) and a couple of token Americans and I loved the CROWDFUNDING GAMES. The […]
Three things the SEC would like you to know right now
As we all know, the SEC is in the process of putting together its crowdfunding rules. Various people have been in to chat with the Staff about life, the Nats and oh by the way would you mind not regulating this thing I’m planning to do? In the course of those discussions, the SEC has been reminding folks of […]
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 […]
Hold your horses, oxen, other draft animals
Whoa, says the SEC. Crowdfunding is going to be legal but it ain’t legal yet. Remember what I said about all investment crowdfunding having to be done through registered portals, and because there ARE no registered portals yet, there IS no investment crowdfunding? The SEC has just reminded us of that. So let’s reprise. Any kind of “market […]
The SEC rulemaking process begins
The SEC today announced that it would start accepting comments from the public on the rulemaking it has to undertake under the JOBS Act, even before it proposes any rules. When it does propose rules, you’ll get a chance to comment on them, but this is an opportunity to help shape the rules before they are proposed. […]
Getting upset about bad stuff that the JOBS Act doesn’t do
Yesterday on his Rolling Stone blog, Matt Taibbi took a swing at the JOBS Act, but missed and missed hard. Mr. Taibbi asks “how does a law exempting a Silicon Valley startup from independent accounting actually encourage investment?” Well, it wouldn’t help encourage investment if that’s what it did. It doesn’t. No-one is being exempted from independent […]
Are we legal yet?
The President has just (like, a minute ago) signed the JOBS Act of 2012, which includes the authorization for crowdfunding. So when can we actually start crowdfunding? NOT YET, and please folks, let’s be careful out there. Some cautionary lawyer-talk after the jump. Two things need to happen before Crowdfunding Launch Date. First, the SEC has to adopt its […]
The top seven tips for crowdfund investors
1. Know what you are buying Startups can offer equity or debt, or different classes of shares with different rights. Understand what you are buying and what rights you have. In an equity investment, the investor becomes a shareholder, and owns a small part of the business. Whether the shareholder has a vote or not depends on what sort […]