Category Archives

EQUITY CROWDFUNDING 2.0

On October 30, the SEC took another shot at legalizing equity crowdfunding, by passing final regulations that are much more streamlined and simpler than the original regulations. The new regulations will take effect sometime next spring or summer, at the earliest. Under the new regulations, a company can raise a Read More

The Risks of Crowdfunding

Crowdfunding is a relatively new method for companies to raise money for various projects. Companies solicit donations for a project from a wide cross-section of the public, in exchange for some kind of reward. For example, a company might offer t-shirts, or bandanas, or even allow pre-orders of its product, Read More

Is Crowdfunding a NonStarter or a Kickstarter?

In 2012, Congress passed the JOBS Act, which among other things, created a new exemption under federal securities laws for crowdfunding. Under the law, companies will be able to raise funds through crowdfunding in exchange for equity, without complying with the full registration requirements that apply to IPO’s. The question Read More