Tag: Raising capital

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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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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Equity Crowdfunding Portals vs. Accredited Investor Portals: What’s the Difference?

By on October 30, 2013 in Crowdfunding with 0 Comments
Equity Crowdfunding Portals vs. Accredited Investor Portals: What’s the Difference?

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, […]

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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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Private Placements under Regulation D: Rules 504, 505 and 506

By on June 26, 2013 in Raising Capital with 0 Comments
Private Placements under Regulation D: Rules 504, 505 and 506

A previous article in this series contained an overview of the private placement exemptions under Regulation D of the Securities and Exchange Commission (SEC), including such key concepts as accredited investors and integration of separate offerings.  It also listed several key factors to consider when deciding which exemption to use: The dollar amount of capital […]

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General Solicitation under the JOBS Act

By on June 25, 2013 in Raising Capital with 0 Comments
General Solicitation under the JOBS Act

Can I set up a website to help market my company’s private placement to prospective investors? Can I send out email blasts? Advertise through Google Adsense or other online advertising? Set up a marketing program based on in-person seminars or on-line videos? What about crowdfunding portals? Traditionally, advertising and “general solicitation,” such as cold calling […]

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Regulation D Private Placements: Overview

By on June 18, 2013 in Raising Capital with 0 Comments
Regulation D Private Placements: Overview

Previous articles in this series contained an overview of private capital raising under U.S. law through private sales of securities (i.e., sales not registered with the Securities and Exchange Commission (SEC)), and the broad definition of the term “securities” under the securities laws.  This article focuses on the requirements of private placements under SEC Regulation […]

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Private Placements: Are General Partnerships and Investment Contracts Securities? (Securities Definition)

By on June 14, 2013 in Raising Capital with 0 Comments
Private Placements: Are General Partnerships and Investment Contracts Securities? (Securities Definition)

In my post Raising Capital for Your Business, I explained how any sale of a security must either be registered with the Securities and Exchange Commission (SEC) or qualify from an exemption from the registration requirements.  Registration is the process used in a public offering, and is expensive and time-consuming, requiring the preparation of a […]

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Raising Capital for Your Business–An Overview

By on June 12, 2013 in Raising Capital with 0 Comments
Raising Capital for Your Business–An Overview

This is the first in a series of articles on raising capital for start-ups or established business seeking to grow their companies. 1. Why do I have to Worry about the Securities Laws if I am just Raising Capital Privately? Many business owners and entrepreneurs are surprised to learn that the law severely regulates their […]

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