Crowdsourced Workers: Are They Employees or Independent Contractors?
What happens when modern innovations in the workforce (made possible by the advent of the internet) collide with traditional concepts of employment? Full Story
Crowdfunding
Crowdfunding Now and What Was Supposed to Be
BREAKING NEWS: Crowdfunding is legal. Sort of. Before you start soliciting for investors on Facebook, you need to know that general solicitations to sell equity to your company not listed on the stock exchange or otherwise registered is still illegal. Full Story
Concerns About Crowdfunding
Among the more noteworthy aspects of the recently enacted Jumpstart Our Business Startups (JOBS) Act are the legislation’s crowdfunding provisions. These provisions are intended to allow small businesses a new means of raising funds directly from investors using the Internet. But many commentators are concerned about these provisions. Among other things, some have noted that the transaction costs that the Act required fund-raising companies to incur may deter start-ups from using crowdfunding. Full Story
U.S. Adopts JOBS Act, Containing Crowdfunding Provisions and Benefits for FPIs
On April 5, U.S. President Obama signed the Jumpstart Our Business Startups (JOBS) Act, a law intended to help small businesses and startups raise capital. As we discussed in a post earlier this year, the legislation provides a “crowdfunding” registration exemption for transactions involving individual investments not exceeding certain thresholds based on an investor’s income and net worth. Full Story
Top 10 Reasons to Avoid Crowdfunding
In today’s age of social media success stories, there is something superficially interesting about crowdfunding as a high-level idea. There has certainly been no shortage of attention to crowdfunding in the press and from business people. But in looking at the new JOBS Act exemption for crowdfunding, I see lots of reasons why many companies will avoid it. While this list could be expanded – and will need to be revised as the SEC adopts rules to implement the new exemption – to get things started I offer up these ten reasons Full Story
Crowdfunding: Who Will (and Who Won’t) Be Doing It
Among the features of the recently enacted JOBS Act that has attracted the most attention are the legislation’s provisions for “crowdfunding.” Under these provisions, a company is permitted to raise up to $1 million during any 12-month period through an SEC-registered crowdfunding portal. While these provisions have attracted a great deal of discussion and even controversy, a more basic question is – who will actually be taking advantage of this new fundraising procedure? Full Story
JOBS Act Becomes Law
The President recently signed into law legislation that aims to make it easier for small companies to raise capital through “crowdfunding”. Crowdfunding will permit private companies to raise up to $1.0 million in a 12 month period through a registered broker or a registered funding portal. Full Story
Crowdfunding Under the JOBS Act – Key Points for Startups.
Financing is the most important and most frustrating thing a startup faces. The most well known ways startups raise capital are through Venture capitalists, Angel Investors and now Crowdfunding. If your startup is considering crowdfunding as a way to raise capital, there are a few keys to keep in mind. A company can raise a maximum of $1 million per year from individual investors.
You Cannot ‘Crowdfund’ A Fund (in Case You Were Wondering)
Crowdfunding may provide an interesting way for some companies to raise capital. It’s definitely getting a lot of the hype since passage of the Jumpstart Our Business Startups (JOBS) Act earlier this month. I’ve read articles talking about how crowdfunding is going to disrupt funding for small businesses (in a good way). Personally, I don’t see it…certainly not in the short-term. Full Story
LXBN TV: What is Crowdfunding, Who Will Use It, is It Worth the Hype?—Fox Rothschild’s James Saksa
When you think of crowdfunding, you think of Kickstarter—or at least many people do. The popular project-funding portal is the current face of crowdfunding and, while it gives people an easy picture of the über-hyped trend, we’re about to see a different and much more grown-up version of crowdfunding with the passing of the JOBS Act. To explain what crowdfunding will look like under the new Act, who will use it and whether or not it’s truly worth the hype it’s receiving, we bring in James Saksa of Fox Rothschild. Saksa wrote an excellent series on crowdfunding for the Securities Compliance Sentinel. Full Story
