Title III Equity Crowdfunding: The Final Rules

The final Title III Equity Crowdfunding rules contain a number of changes from the proposed rules. Some of the changes are good, and some are arguably not so good. On the good side: First time issuers raising more than $500,000 and up to $1 million will not have to have their financial statements audited. Instead, … Continue reading Title III Equity Crowdfunding: The Final Rules

Equity Crowdfunding: “Communication Channels”

Perhaps one of the most interesting aspects of the new Title III Equity Crowdfunding Rules is Rule 303(c). Rule 303(c) of Regulation Crowdfunding requires an intermediary to provide, on its platform: Channels through which investors can communicate with one another and with representatives of the issuer about offerings made available on the intermediary‚Äôs platform. An … Continue reading Equity Crowdfunding: “Communication Channels”

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

Equity Crowdfunding: SEC To Vote This Friday

The SEC has scheduled a meeting for this coming Friday to vote on the final equity crowdfunding rules under the JOBS Act. The SEC’s notice of the meeting says: Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold … Continue reading Equity Crowdfunding: SEC To Vote This Friday

How to Make the Washington Crowdfunding Law Better

Washington State passed one of the first state-level equity crowdfunding laws in the nation in 2014, to great fanfare. The regulations implementing the law went into effect November 1, 2014. You can find a good summary of the rules at this link: http://www.dfi.wa.gov/small-business/crowdfunding The trouble is–despite the rules being in effect now for almost a … Continue reading How to Make the Washington Crowdfunding Law Better

Rule 147: Comments to SEC Due Monday

If you want to comment on the SEC’s proposed amendments to Rule 147, the deadline is Monday. Rule 147: What Has The SEC Proposed In general, what the SEC has proposed are good improvements to the law. For example: a company using the newly proposed Rule 147 would not have to be incorporated in the … Continue reading Rule 147: Comments to SEC Due Monday

Title III, Rule 506 & Reg A

The SEC has finalized the Title III crowdfunding rules. Now it is time to see how people will use the new rules. One thing that I think might have been overlooked in all of the excitement over the final rules is the possibility of doing a Title III equity crowdfunding at the same time as … Continue reading Title III, Rule 506 & Reg A

Rule 147: Good News

The SEC has proposed changes to Rule 147. You can find the proposed amendments here. Rule 147 is one of the federal securities law rules that makes state-level equity crowdfunding more difficult. The reason? Rule 147 is the rule issued pursuant to Section 3(a)(11) of the Securities Act of 1933. Section 3(a)(11) is the statutory basis … Continue reading Rule 147: Good News