The Crowdfunding movement has moved from an internet e-commerce buzz word to an actual viable way for everyone from the smallest of artists to high profile actors to get funding for a project that otherwise wouldn’t happen.
“Crowdfunding” is a relatively new word. You may have heard of the concept, but may not yet know the word. Crowdfunding is a method by which money is raised to put capital into a business.
Crowdfunding portals are “websites that enable large numbers of individuals to support financially a project or company…” however not all investors are happy since much of the capital goes to inexperienced inventors and project managers.
Crowdfunding refers to people or organizations obtaining funds for their cause by asking a large audience for money, allowing them to bypass the banks and large investors such as venture capitalists.
The Securities Exchange Commission on October 23 issued its long overdue proposed rules on equity crowdfunding to implement the statutory crowdfunding exemption set forth in Title III of the JOBS Act. As proposed, Regulation Crowdfunding implements and further clarifies the statutory requirements for securities crowdfunding, and in some instances imposes conditions that exceed those in the JOBS Act.
Monday Morning Regulatory Review Part I, Regulations: Crowdfunding, Mental Health Parity, Injury Reporting
Agencies charged new rules and proposed new charges to the American economy last week with renewed vigor, including the…
On October 23, The Securities and Exchange Commission voted to propose rules under the JOBS Act to permit companies to offer and sell securities through crowdfunding.
Even if you have no interest in crowdfunding, there are a number of interesting elements in the SEC’s crowdfunding proposal that may have broader applicability.
On October 24, 2013, in accordance with Title III of the Jumpstart Our Business Startups Act (the “JOBS Act”), the Securities and Exchange Commission (the “SEC”) issued a press release and published long-awaited proposed rules (Release Nos. 33-9470; 34-70741) (the “Proposed Rules”) to permit companies to offer and sell securities through crowdfunding (“Regulation Crowdfunding”).
On November 15, 2013 at 1:00 pm, Morrison & Foerster partners David Lynn and Anna Pinedo will participate in a PLI webcast on crowdfunding.