Search results for: securities act

Last Thursday the SEC issued guidance on what constitutes general solicitation. This guidance is helpful to companies trying to conduct Rule 506 offerings. Thanks to the JOBS Act, we now have two types of Rule 506 offerings. Those that cannot be generally solicited and those that can. This might sound harmless but if you generallyContinue reading “New SEC Guidance on General Solicitation”

The idea that you can “test in” to accredited investor status is gaining momentum. Rep. Schweikert (R-Ariz.) has introduced a bill that would do just that. His bill has passed out of the House Financial Services Committee and is apparently headed to the floor of the House. You can track the progress of the billContinue reading “Accredited Investor: Let’s Let People Test In”

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 tooContinue reading “Equity Crowdfunding: The 12(g) Problem”

If you are in the process of awarding stock options to employees or service providers, do not forget that you need (among other things) board approval of all stock option grants. This is required by the corporate law of Delaware, Washington, and I imagine almost every state corporate law in the country. (In this post, IContinue reading “Stock Options: Don’t Forget Board Approval”

Startups raising money need to know how to do so in compliance with federal and state securities laws. The trouble is–it is not always easy to know what the rules are. To make it more difficult, the rules keep changing. Congress passes new laws. The SEC issues new regulations. All of it becomes difficult andContinue reading “Pitching Folks You Just Met”

Pitching your company to investors and trying to raise money involves meeting a lot of people you have never met before. This is true regardless of the depth of your network. To raise money for a startup, you have to work hard and meet a lot of new people. The SEC has issued rules underContinue reading “Pitching to the Unknown”

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”