June 7, 2016

The New Equity Crowdfunding Law

Hot off the presses, as if they use “presses” to publish online: my article for Entrepreneur.com: “What the New Equity Crowdfunding Rules Mean for Entrepreneurs.” Some highlights, if you don’t have 6 minutes to read the whole thing: “For those who have run out of Ambien, the hundreds of pages of new rules will provide a welcome sleep aid. But for professionals who plan to use these rules to help companies raise new capital, it is required reading. Bring on the Red Bull.” “Despite the hopes of many of us that the SEC would pull a regulatory rabbit out of a hat and raise the ceiling to $5 million, the limit on what a company can raise through Title III equity crowdfunding remains at $1 million.” “The SEC actually tightened up the amounts that can be invested by each individual, which is not good news for entrepreneurs.” “If a company using […]
June 7, 2016

An In Depth Q&A on the SEC’s Equity Crowdfunding Rules With Bankless Times

Bankless Times is one of my favorite online publications. I did an in-depth interview with them on some of the lesser-known provisions from the 686 pages of SEC rules just released for Title III equity crowdfunding. A few highlights, followed by the link: “There are 686 pages of SEC rules for this nine-page law, so you can imagine there are some hidden gems in there. The good news is, the SEC took away the audit requirement for first time users of the law, so now anyone using equity crowdfunding to raise from $100,000 to $1 million only needs “reviewed” financials, which is far less costly.” “For people who think this will be just like pre-selling a new smart watch on Kickstarter, they will have some surprises coming. Equity crowdfunding involves the sale of securities. There are state and federal laws to comply with, and bad things can happen to people who […]
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