Crowdcheck Blog

Today the SEC passed rules eliminating the ban on solicitation for certain accredited-only investments made pursuant to Section 506(c) of Regulation D.  So does this mean you can start email bombing people to invest in your company? Or hire William Shatner to do a pitch on late-night tv?  NO! At least not yet.  Despite some news reports to the contrary general solicitation is not legal right now.  I can hear some of you ask “didn’t you just say the SEC passed the rule?”  Yes, but just because the rule is passed that doesn’t mean it is currently effective.  The rule isn’t effective until its effectiveness date which we hear (though this may change) will be 60…

This week has been a good week for the SEC, mostly in the sense that they aren’t the IRS (please don’t audit me). But it hasn’t been a good week for the millions of entrepreneurs and investors still waiting for the SEC to finalize the rules for the securities-based crowdfunding established by last year’s JOBS act.  Every day that goes by without rules means more businesses without needed funding, more investors without meaningful investment opportunities, and greater uncertainty about whether crowdfunding as controlled by the SEC’s regulations will be viable.  This uncertainty, more than anything else, is killer for small businesses. Skeptics have accused the…

Last month we were fortunate enough to get a bunch of really smart people together to talk about how investment crowdfunding should be regulated...without it being overregulated.  Many of you were there, but if you couldn't make it, or just want to relive the memories we have a treat: the conference videos.  Enjoy!  

The CrowdFundCast went to South by Southwest interactive festival to spread the joy…err…calm feeling of properly done due diligence.  It was a great but time devouring experience, which we talk about here.

After a long holiday break the CrowdFundCast is Back! This time we get to interview Mr. Sang Lee of Return On Change about crowdfunding and high impact investment. The discussion was fascinating, the skype…a little wonky, but Sang graciously put up with the technical hurdles to talk about why he thinks crowdfunding will help both companies and investors be the change they want to see in the world. Sang Lee is the founder and CEO of Return on Change (www.returnonchange.com), the next generation’s equity crowdfunding platform aiming to connect investors with innovative and socially conscious startups. As a board member of CFIRA (Crowdfund Intermediary…

Gamers donate record amount of money to help create new game http://www.myfoxaustin.com/story/20161263/gamers-donate-record-amount-of-money-to-help-create-new-game

The lack of regulations is not the only big question make hanging over crowd investing. The merits of crowdfund investing in the US are also hotly debated. While many people are predicting a positive sea change for companies and common citizens, there is also no shortage of skeptics worried that investors will be ripped off, or at best invest in nothing but junk. With this controversy raging, it behooves everyone involved in crowd investing: companies seeking money, platforms, the politicians and regulators, and yes, the investors themselves, to sit down and think about how success should be defined. One option, and the one most likely to be put forward by…

In this episode we talk about the SEC Small Business Forum, whether portals will be able to charge transaction based fees, and finally getting to park in the UVA Darden school parking deck (a dream of mine). If you would like to read more about just what a Broker-Dealer is there is an excellent (though long) resource here (pdf) from Robert Colby and Lanny Schwartz. As a side note: while getting a regular production schedule is top of my list of new year’s resolutions, but things will be spotty until then.

On November 15th the SEC will be hosting a forum on small business capital formation, including a breakout session on crowdfunding with our own Sara Hanks on the panel. Deadline to register is November 12th. Hope to see you there.

At times it is folly to hasten at other times, to delay. The wise do everything in its proper time. - Ovid A milestone was quietly missed Wednesday when the SEC didn’t announce a meeting to release proposed regulations for investment crowdfunding. By failing to announce a meeting by Wednesday the SEC is unlikely to be able to meet the statutory deadline for having a final rule in place by the end of the year. This is due to the various steps the SEC is legally required to follow, each of which require a certain amount of time (for a brief primer on the process the SEC has to go through see this post). While there are some ways the SEC could possibly shorten…