States Take the Lead On Crowdfunding

States Take the Lead On Crowdfunding

The JOBS Act’s crowdfunding provisions were once one of the most eagerly anticipated items contained in that Act. Many companies and their advisors had high hopes that these crowdfunding provisions would open up new arenas for financing smaller companies while easing the costs and challenges associated with securities regulatory compliance.

Guest Post: Some States Have Sidestepped the JOBS Act’s Burdensome Crowdfunding Rules

By | The D&O Diary | May 15, 2014
Guest Post: Some States Have Sidestepped the JOBS Act’s Burdensome Crowdfunding Rules

The new crowdfunding provisions in the “Jumpstart Our Business Startups Act of 2012” have received a lot of attention, including a piece on this blog earlier this month:  Title III of the Act exempts certain crowdfundings from the registration requirements of the federal securities laws (the “Federal CF Exemption”), and the U. S. Securities and Exchange Commission issued proposed regulations in October 2013 to implement the exemption (the “Proposed CF Regulations”).

Ontario’s Proposed Prospectus Exemptions: Crowdfunding Exemption

Ontario’s Proposed Prospectus Exemptions: Crowdfunding Exemption

In its March 20, 2014 proposals for four new prospectus exemptions intended to facilitate capital raising for businesses in Ontario, the Ontario Securities Commission (OSC) proposed a crowdfunding prospectus exemption (the “Crowdfunding Exemption”) aimed at facilitating greater access to capital through the exempt market, particularly for start-ups and small and medium-sized enterprises.