Washington State Equity Crowdfunding Update

My colleague Danny Neuman and I testified this morning in support of HB 1593. This bill would improve the Washington State equity crowdfunding law. The bill is sponsored by Representatives Vick and Kirby. HB 1593 Would Do a Number of Helpful Things HB 1593 would do the following: Eliminate the quarterly public disclosure of executive officer … Continue reading Washington State Equity Crowdfunding Update

Recommended Improvements to Washington’s Equity Crowdfunding Law

By Daniel Neuman.  I am a corporate and securities lawyer, working primarily with startups and early-stage companies in Seattle. I testified yesterday before the Washington State House of Representatives Business & Financial Services Committee regarding the state’s Equity Crowdfunding law, and presented a list of recommendations for how to improve the regulations and make the law … Continue reading Recommended Improvements to Washington’s Equity Crowdfunding Law

506(c) Offerings: Let’s Fix the Verification Rules

Section 201(a) of the JOBS Act repealed the ban on generally soliciting or generally advertising private securities offerings, provided certain conditions were met. Many people believed that this change in the law would be one of the most dramatic brought about by the JOBS Act. But things didn’t go as planned. Today, only a small … Continue reading 506(c) Offerings: Let’s Fix the Verification Rules

Washington State Equity Crowdfunding News

Ashley Stewart (@ashannstew) recently wrote a great piece in the Puget Sound Business Journal on Washington State equity crowdfunding titled “Crowdfailure: Not a single company has been able to use Washington’s 2-year-old crowdfunding law.” She also wrote an accompanying blog post. Washington State Equity Crowdfunding The article tells the story of a company frustrated at … Continue reading Washington State Equity Crowdfunding News

The Text of New Section 4(a)(7)

If you are looking for the complete text of new Section 4(a)(7) of the Securities Act of 1933, as amended, I have quoted it in full below. You can also find the entire text of the Fixing America’s Surface Transportation Act or the “FAST Act” at this link. This new law makes it substantially easier … Continue reading The Text of New Section 4(a)(7)

The RAISE Act: Good News for Tech Workers

The RAISE Act would allow holders of stock in private companies to more easily sell their shares. Sales of private company stock are known as “secondary transactions.” Secondary transactions are currently hard to do because of the securities law restrictions on sales of shares in private companies, and also because companies frequently impose a number of … Continue reading The RAISE Act: Good News for Tech Workers

Equity Crowdfunding: The 12(g) Problem

You might be wondering what I am talking about when I say that there is a 12(g) problem with equity crowdfunding. What is Section 12(g), anyway? Section 12(g) is a section of the Securities Exchange Act of 1934 that requires companies to start reporting as a public company if they allow themselves to have too … Continue reading Equity Crowdfunding: The 12(g) Problem

Washington State Equity Crowdfunding

As part of Seattle Startup Week I am giving a talk on equity crowdfunding. The talk will be this Friday. There is a link about the event on the Seattle Startup Week calendar. Washington State was one of the first state’s to have a state-level equity crowdfunding law. In fact, Washington State might have been … Continue reading Washington State Equity Crowdfunding

Finders: Recommendations to the SEC

The SEC’s Advisory Committee on Small and Emerging Companies recently issued recommendations regarding the regulation of finders. If you are not familiar with the rules, the SEC takes a very narrow view of who can help companies find investors without having to register as a broker-dealer. Broker-dealer registration is so onerous that people won’t engage … Continue reading Finders: Recommendations to the SEC

Angel Groups and the SEC

The SEC recently issued guidance on angel groups and the general solicitation and general advertising of private company securities offerings. General solicitation and general advertising of private company securities offerings is a hot area. The JOBS Act allows companies that are raising money solely from accredited investors to generally solicit and generally advertise their offerings. However, … Continue reading Angel Groups and the SEC