Check out our new video on equity crowdfunding: For more information on equity crowdfunding please visit our sister site, crowdfundinglawyer.us, and our infographic comparing alternatives for raising capital in private transactions, including equity crowdfunding, Reg A+, and Rule 506(c) offerings.
After a long wait, the SEC’s equity crowdfunding rules went in effect today, May 16, 2016. For the first time in the U.S., startups and other businesses can sell stock and other securities by listing on equity crowdfunding websites (known as “portals”). Unlike the popular crowdfunding sites such as Kickstarter and IndieGoGo, which do not allow […]
We are pleased to announce the publication by our sister site, crowdfundinglawyer.us, of a brand-new Infographic on Raising Capital on the Internet. There appears to be much confusion between the four major methods of raising capital for start-ups and growing business on the web: Private positioning web sites, easily accessible only by certified investors, Reg A+ […]
Registration now Open for Crowdfunding Portal Licenses Equity crowdfunding took a step closer to becoming a reality in the U.S. when on January 29, 2016 the Securities and Exchange Commission (SEC) approved the rules of the Financial Industry Regulatory Authority (FINRA) governing crowdfunding portals. Starting that date, companies running equity crowdfunding web platforms may submit applications to the SEC and […]
The SEC’s revamped Regulation A, known informally as Regulation A+, went into effect on June 19, 2015. There have been many reports in the press, including the Los Angeles Times, mistakenly implying that Reg A+ has legalized equity crowdfunding. In fact, equity crowdfunding and Regulation A+ are two entirely separate topics. Regulation A+ loosens the rules for […]
We have published a new article on Raising Capital Over the Internet: Equity Crowdfunding vs. Accredited Investor Offerings. This article contains a detailed discussion of the capital raising for companies wishing to utilize the Internet in the process. Three alternative forms of capital raising are compared: Traditional private placements Private Placements to Accredited Investors Using […]
On October 23, 2013, the SEC issued a press release announcing its long awaited equity crowdfunding rules. The proposed rules were released a few days later, and are now open for a three-month comment period. Assuming revised rules are published after comments are received and analyzed by the SEC staff, revised rules can be expected […]
The Jumpstart Our Business Startups Act (the JOBS ACT) has made it easier for companies to use websites and web portals to raise capital through the sale of stock or other forms of equity over the Internet. Two distinct methods for capital raising are made available by the JOBS Act: equity crowdfunding sites and portals, […]