News & Analysis as of

Crowdfunding › Rule 506 Offerings

Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including,... more +
Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -
Whitman Legal Solutions, LLC

Rule 506 Offerings Continue to be Popular with Real Estate Companies

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Like an accordionist, real estate sponsors often seek to be innovative. Cutting-edge opportunities like crowdfunding and online selling platforms call to them. However, based on statistics from the Securities and Exchange...more

Whitman Legal Solutions, LLC

Real Estate Continued to Favor Rule 506(b) Offerings During the Pandemic

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Under the Securities Act of 1933 (1933 Act), all securities offerings must be registered with the SEC unless there is an exemption. Registering securities is a costly and time-consuming process requiring SEC review and...more

Whitman Legal Solutions, LLC

Pros and Cons of Equity Crowdfunding for Real Estate Investments

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Popular crowdfunding platforms, like Kickstarter and IndieGoGo operate backer-based platforms similar to noisenights. In backer-based crowdfunding, backers who contribute a minimum amount usually receive the product or...more

Farrell Fritz, P.C.

Securities Safety Check for New TV Series “Unicorn Hunters”

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A new reality streaming television series called Unicorn Hunters debuted last week in which startups will pitch to a panel that includes Apple co-founder Steve Wozniak, and the panelists after some grilling of the...more

Rosenberg Martin Greenberg LLP

While you were Quarantining – the Private Offering Regulatory Framework Gets a Makeover – What’s New and What you Need to Know.

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On March 15, 2021, at long last, the Securities and Exchange Commission (“SEC”)’s proposed amendments to the private offering rules (a process which began in June 2019 via a concept release) are anticipated to go into effect....more

Farrell Fritz, P.C.

Relief for Pre-Verified Accredited Investors May Encourage Rule 506(c) Offerings

Farrell Fritz, P.C. on

It’s pretty common for issuers in follow-on offerings to solicit investors from previous rounds first.  Indeed, doing so is often mandatory when early investors have preemptive rights. ...more

McGuireWoods LLP

SEC Simplifies the Exempt Offering Framework

McGuireWoods LLP on

On Nov. 2, 2020, the U.S. Securities and Exchange Commission (SEC) adopted final rules to “simplify, harmonize, and improve” the current exempt offering framework for the benefit of investors, emerging companies and more...more

Pillsbury Winthrop Shaw Pittman LLP

SEC Adopts Amendments to Exempt Offering Rules

Pillsbury Winthrop Shaw Pittman LLP on

On November 2, 2020, the Securities and Exchange Commission (SEC) adopted amendments to its exempt offering rules, including Regulation D and Regulation A (Amendments). Many of the Amendments largely harmonize the existing...more

BCLP

SEC Modernizes Framework for Exempt Offerings

BCLP on

In another 3-2 vote, on November 2, 2020 the SEC approved significant amendments to the framework for exempt offerings intended to harmonize and simplify the framework for exempt offerings under the Securities Act of 1933. ...more

Mayer Brown Free Writings + Perspectives

Exempt Offering Framework Amendments

Mayer Brown Free Writings + Perspectives on

On November 2, 2020, the U.S. Securities and Exchange Commission (SEC) voted to adopt amendments proposed in March 2020 that harmonize and modernize the exempt offering framework (referred to as the Amendments). As with...more

Manatt, Phelps & Phillips, LLP

Raising Capital Through Private Placements: Rule 506(b) vs. Rule 506(c) Offerings

Manatt, Phelps & Phillips, LLP on

Startups, and particularly first-time founders, typically find that raising funds is a significant, challenging and time-consuming process. There are many ways a founder can secure funding, including crowdfunding,...more

Farrell Fritz, P.C.

Proposed Expansion of “Accredited Investor” Definition Would Benefit Issuers and Investors

Farrell Fritz, P.C. on

The Securities and Exchange Commission is proposing to expand the definition of “accredited investor” to include additional entities that could bear the economic risks of investment and certain financially sophisticated...more

Mayer Brown Free Writings + Perspectives

Annual Report of the Advocate for Small Business Capital Formation

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The Office of the Advocate for Small Business Capital Formation published its annual report to the Committee on Banking, Housing and Urban Affairs of the U.S. Senate and the Committee on Financial Services of the US House of...more

Mayer Brown Free Writings + Perspectives

SEC Issues Concept Release on Harmonization of Securities Offering Exemptions

Mayer Brown Free Writings + Perspectives on

On June 18, 2019, the US Securities and Exchange Commission (SEC) issued a concept release soliciting “comment on possible ways to simplify, harmonize, and improve the exempt offering framework to promote capital formation...more

Mayer Brown Free Writings + Perspectives

Heritage Foundation Hosts Discussion on the JOBS Act

Mayer Brown Free Writings + Perspectives on

On October 23, 2018, the Heritage Foundation hosted a discussion entitled, “Problems with the JOBS Act and How They Can Be Fixed” that featured University of Kentucky College of Law Professor Rutherford B. Campbell....more

Mayer Brown Free Writings + Perspectives

Social Media Compliance Guide For Issuers, Broker-Dealers, And Advisers

Mayer Brown Free Writings + Perspectives on

[author: Trevor Starer] The use of social media raises many securities law and compliance challenges for issuers, broker-dealers, and investment advisers. This Compliance Guide summarizes briefly some key principles. ...more

Ward and Smith, P.A.

FAQ: What Businesses Need to Know About Investment Crowdfunding

Ward and Smith, P.A. on

What is Crowdfunding? Crowdfunding is a marketing tool that businesses use to obtain capital from a large number of individuals, typically over the Internet....more

Ward and Smith, P.A.

Initial Results Validate Crowdfunding Reforms

Ward and Smith, P.A. on

Beginning in 2012 America started a bold experiment to prove that: Less is more; and, Addition by subtraction works. The experiment tested whether reducing government regulation would produce better...more

Morrison & Foerster LLP - JOBS Act

Capital Formation Legislative Update

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On March 22, 2016, Congressman French Hill introduced a bill, HR 4831, that would amend the 100-holder restriction on S corporations in the limited case of shares acquired through crowdfunded offerings or Regulation A...more

Morrison & Foerster LLP - JOBS Act

SEC Government-Business Forum on Small Business Capital Formation

Morrison & Foerster LLP - JOBS Act on

Last week, the SEC held its annual Government-Business Forum, which included a number of presentations on exempt offering alternatives. Anya Coverman, Deputy Director of Policy of NASAA, presented on intrastate crowdfunding....more

Troutman Pepper

Crowdfunding Regulations

Troutman Pepper on

On October 30, 2015, the Securities and Exchange Commission (SEC) adopted final crowdfunding rules. More than two years after the publication of the proposed crowdfunding rules, the SEC approved regulations that permit...more

Stinson - Corporate & Securities Law Blog

SEC Proposes to Increase Rule 504 Offering Limits to Create Another Crowdfunding Exemption

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The SEC has issued a rule proposal that would increase the aggregate amount of securities that may be offered and sold in any twelve-month period pursuant to Rule 504 from $1 million to $5 million and to disqualify certain...more

Buchalter

Using the Internet to Raise Money: Securities Laws and Crowdfunding

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There are many services available to emerging companies to raise money through crowdfunding. As an entrepreneur or leader of a company evaluating these options, it is important to understand the basic legal foundations of...more

Seyfarth Shaw LLP

SEC Advisory Committee Recommends Additional Clarity Regarding So-Called “Finders”

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The Securities and Exchange Commission ("SEC") Advisory Committee on Small and Emerging Companies ("Advisory Committee") announced new recommendations to make it easier for small and emerging companies to raise capital using...more

Sands Anderson PC

Crowdfunding and Real Estate Development

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The real estate development market continues to open up to crowdfunding, and the changes to capital raising for real estate projects could be significant if only a small portion of the potential of these new methods take...more

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