Crowdfunding has officially been launched in Ontario as of January 28, 2016, enabling Canadian businesses to raise capital at a low cost by reaching out to a large number of investors over the Internet.
One of the key investor protections of Regulation Crowdfunding under JOBS Act Title III is the requirement that offerings must be conducted exclusively through a single platform operated by a registered broker-dealer or a new type of SEC registrant, a funding portal.
Have you ever been depressed when a Kickstarter project to make potato salad proceeded to rake in more than your annual salary?
The U.S. regulators have long been considering ways to make it easier for early-stage startup companies to raise capital in a more flexible and less cumbersome method.
On October 30th, the SEC adopted their Crowdfunding rules and the adopting release became available on October 31st, commonly referred to as Halloween.
Monday Morning Regulatory Review: Obamacare Contraceptive Non-Profit Sequel; Crowdfunding Uncrowded; & Electric Water Effluents
The United States Supreme Court (SCOTUS) granted certiorari in seven Obamacare contraceptive coverage cases signaling the return of an agency regulatory compliance issue, not a constitutional or “rights” issue.
Prior to the “crowdfunding” era, entrepreneurs would typically seek capital by tapping their personal bank accounts or 401Ks, or by asking their network of family, friends and professional contacts for loans or an equity investment in their product or startup.
In the current hype about venture capital and crowdfunding, it is easy to forget that there are other options to starting a business and reasons not to take these routes too early.