Crowdfunding is for everyone.
One thing I will never get tired of working in this space is the variety of companies that have been able to effectively utilize offerings under Regulation CF and Regulation A. These exemptions are versatile, and allow for companies to raise funds whether they have no interest in being more than a neighborhood restaurant, or […]
Lesson of the month: following the money
Here’s the latest instalment of the I’m-not-calling-it-fraud-of-the-month series. This lesson actually derives from two separate exempt offerings where financials that looked legit at the outset turned out to reflect a different reality. Company A presented financials that showed substantive revenues. However, those revenues were derived from related companies (a fact that was not disclosed) and […]
Beware of Overhyping AI: The SEC Is Watching
Powered by CrowdCheck human intelligence* Companies hyping their AI capabilities should tread carefully—especially when investors are involved. The SEC recently charged Presto Automation Inc. for misleading claims about its AI-powered drive-thru ordering system. The company touted fully automated voice ordering, but in reality, human intervention was often required. This kind of “AI washing” can lead […]