CrowdCheck Blog

One of the great benefits to issuers under the SEC’s rules for offerings under Tier 2 of Regulation A, effectively created by the JOBS Act, is the preemption of state requirements for registration of the offer and sale of securities. Known as “Blue Sky Laws”, these state specific rules added considerable cost to qualifying an offering under Regulation A. The SEC determined it was appropriate to preempt state qualification rules by deeming securities offered and sold under Tier 2 of Regulation A…

One of the great benefits to issuers under the SEC’s rules for offerings under Tier 2 of Regulation A, effectively created by the JOBS Act, is the preemption of state requirements for registration of the offer and sale of securities. Known as “Blue Sky Laws”, these state specific rules added considerable cost to qualifying an offering under Regulation A. The SEC determined it was appropriate to preempt state qualification rules by deeming securities offered and sold under Tier 2 of Regulation A…

One of the great benefits to issuers under the SEC’s rules for offerings under Tier 2 of Regulation A, effectively created by the JOBS Act, is the preemption of state requirements for registration of the offer and sale of securities. Known as “Blue Sky Laws”, these state specific rules added considerable cost to qualifying an offering under Regulation A. The SEC determined it was appropriate to preempt state qualification rules by deeming securities offered and sold under Tier 2 of Regulation A…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to some state regulators, it may be sooner than companies expect.   In a recent settlement, an issuer was found liable for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of fraudulent behavior against their CEO even though there had not been a conviction. Further, the criminal proceedings at issue were…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to some state regulators, it may be sooner than companies expect.   In a recent settlement, an issuer was found liable for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of fraudulent behavior against their CEO even though there had not been a conviction. Further, the criminal proceedings at issue were…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to some state regulators, it may be sooner than companies expect.   In a recent settlement, an issuer was found liable for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of fraudulent behavior against their CEO even though there had not been a conviction. Further, the criminal proceedings at issue were…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to some state regulators, it may be sooner than companies expect.   In a recent settlement, an issuer was found liable for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of fraudulent behavior against their CEO even though there had not been a conviction. Further, the criminal proceedings at issue were…

Startup investors all hope for a great “exit.” Most startups, of course, will never get to that point, but for the successful ones, the principal ways that investors get repaid for their faith in a high-growth early stage company is an eventual IPO, hopefully at a price much higher than the price they paid, or through the acquisition of the startup by another company. It can take a very, very long time for a startup to get to the point of an IPO. We aren’t aware of a company crowdfunded under…

Startup investors all hope for a great “exit.” Most startups, of course, will never get to that point, but for the successful ones, the principal ways that investors get repaid for their faith in a high-growth early stage company is an eventual IPO, hopefully at a price much higher than the price they paid, or through the acquisition of the startup by another company. It can take a very, very long time for a startup to get to the point of an IPO. We aren’t aware of a company crowdfunded under…

Startup investors all hope for a great “exit.” Most startups, of course, will never get to that point, but for the successful ones, the principal ways that investors get repaid for their faith in a high-growth early stage company is an eventual IPO, hopefully at a price much higher than the price they paid, or through the acquisition of the startup by another company. It can take a very, very long time for a startup to get to the point of an IPO. We aren’t aware of a company crowdfunded under…