Nine months after the end of the SEC’s comment period for proposed crowdfunding rules, the gestation period for these eagerly awaited regulations remains a mystery.
So you’d like to take advantage of the new Texas intrastate crowdfunding rules, when they’re effective in late November, to raise money for your business.
As you probably read, the Texas Securities Board approved intrastate crowdfunding yesterday without limiting it to accredited investors. You can read the rules here.
Ask anyone who follows innovation what topics are hot and it is likely most of them will say “crowdfunding.” By now, sites like Kickstarter and IndieGoGo have created thousands of loyal followers. In recent months even the real estate industry has entered the scene.
The SEC has recently issued interpretations regarding Rule 147. This rule provides a safe harbor under Section 3(a)(11) of the Securities Act of 1933, as amended, which exempts from federal registration securities offered and sold only to persons resident within a single state or territory, in which the issuer is also resident.
Solar and distributed generation (DG) offer asset attributes and capital investment profiles that are well suited to crowdfunding.
Wisconsin’s equity crowdfunding law, which was unanimously passed by the legislature and signed by Gov. Walker last November, officially took effect on June 1, 2014. Wisconsin is one of 11 states that has “taken matters into its own hands” by passing its own crowdfunding laws while the federal rules are still pending.
Many unsigned or independent music artists struggle to finance studio time, recording an album, touring the country or even promoting their music locally. The struggle can push some artists to treat their talents like a hobby or even give up the dream of performing professionally. Others work full- or part-time jobs to raise the money themselves while playing small gigs for little pay. Some industrious artists use crowdfunding websites to raise the capital necessary to fund their talent.
The advent of crowdfunding has led to some incredible feats of entrepreneurism—the realization of products, restaurants and services that may have never seen the light of day. It’s also led to one man raising more than $50,000 just to make some potato salad. The thing is, non-serious campaigns—or even serious ones that fail to make good on promises—could face repercussions.
It has been more than two years since the JOBS Act was passed and almost nine months since the SEC proposed crowdfunding rules — but still no final rules.