Raising Capital

Equity Crowdfunding: The Video

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.  

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California Legalizes Payment of Finders Fees

By on May 16, 2016 in Raising Capital with 0 Comments
California Legalizes Payment of Finders Fees

Payment of finders fees has long been a grey area of the law.  Because the receipt of a fee or commission on the sale of property is a key element in the definition of a broker, the widespread practice of paying finder’s fees to unlicensed persons has always had a whiff of  illegitimacy.  In the context of […]

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Equity Crowdfunding Goes Live!

Equity Crowdfunding Goes Live!

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 […]

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Is Regulation A+ Really Crowdfunding?

Is Regulation A+ Really Crowdfunding?

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 […]

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SEC adopts Final Regulation A+ Rules

By on March 30, 2015 in Raising Capital with 0 Comments
SEC adopts Final Regulation A+ Rules

On March 25, 2015, the Securities and Exchange Commission (SEC) adopted its long-awaited final rules overhauling its Regulation A+.  The full text of the rules can be found at this link to the SEC’s website. The final Rules implement Section 401 of the JOBS Act, which Congress enacted in January 2012 to ease the process of […]

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SEC Announces Proposed Regulation A+ Rules

By on December 23, 2013 in Raising Capital with 0 Comments
SEC Announces Proposed Regulation A+ Rules

On December 18, 2013, the Securities and Exchange Commission (SEC) announced its proposed Regulation A+ Rules.  These Rules will implement Section 401 of the JOBS Act, which Congress enacted in January 2012 to ease the process of capital raising by start-ups and other growing companies.  Other provisions of the JOBS Act enable equity crowdfunding and […]

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A Venture Capital Attorney Explains how Entrepreneurs can get Funding for Start-Ups and Early-Stage Companies

By on December 11, 2013 in Raising Capital with 0 Comments
A Venture Capital Attorney Explains how Entrepreneurs can get Funding for Start-Ups and Early-Stage Companies

We have just published a comprehensive article entitled: A Venture Capital Attorney Explains how Entrepreneurs can get Funding for Start-Ups and Early-Stage Companies. The article discusses: What types of companies are candidates for venture capital, angel capital and other institutional capital The different types of investors (friends and family, venture capital, angel capital, incubators, strategic investors) […]

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Equity Crowdfunding vs. Accredited Investor Offerings: New Comprehensive Article

By on November 11, 2013 in Crowdfunding, Raising Capital with 0 Comments
Equity Crowdfunding vs. Accredited Investor Offerings: New Comprehensive Article

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 […]

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SEC Adopts Final Rules Permitting General Solicitation in Rule 506 Offerings to Accredited Investors

By on July 22, 2013 in Raising Capital with 0 Comments
SEC Adopts Final Rules Permitting General Solicitation in Rule 506 Offerings to Accredited Investors

On July 10, 2013, the Securities and Exchange Commission (SEC) adopted final rules amending Rule 506 of Regulation D under the Securities Act of 1933 (Securities Act) permitting issuers to engage in general advertising and general solicitation in Rule 506 offerings made solely to accredited investors.  The amendments to Rule 506 are contained in Securities […]

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General Solicitation of Accredited Investors in Regulation D Private Placements : SEC to hold Open Meeting on New Rules

By on July 5, 2013 in Raising Capital with 0 Comments
General Solicitation of Accredited Investors in Regulation D Private Placements : SEC to hold Open Meeting on New Rules

In a previous article on General Solicitation under the JOBS Act, I discussed the groundbreaking changes mandated by Section 201 of the Jumpstart Our Business Startups (JOBS) Act, passed by Congress and signed by President Obama in April 2012.  Traditionally, a key requirement of private placements of securities was a prohibition on all forms of […]

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