The day before Halloween the SEC gave entrepreneurs a treat by passing final rules to enact Regulation Crowdfunding. The SEC rules will allow the offer and sale of up to $1 Million of securities through crowdfunding over a 12 month period. Who is eligible? Any company except for the foregoing is eligible to use the…

Based on input from the State Bar of the California, a bill (AB 667) creating an exemption for finders within California is working its ways through the halls of Sacramento. This is a promising development in an area full of uncertainty. The SEC takes the view that stands for the proposition that anyone, person or…

Since the 19th century companies have used third parties, whether individuals or companies, in their fund raising efforts. Today, companies ranging in size from start-ups to private equity funds rely on finders to help them raise money. Overall, this has been positive for capital formation, especially on the lower end of things. Nevertheless, a minority…

The Securities and Exchange Commission released a compliance guide on Regulation A+ for small businesses last week. The guide is only useful for very sophisticated small businesses and their advisors. The compliance guide does provide some context and resources for the securities law practitioner. The guide can be found at: http://www.sec.gov/info/smallbus/secg/regulation-a-amendments-secg.shtml

Overstock.com recently filed a registration statement with the SEC to register its securities for sale to the public. The novel part is the fact that the securities offered will be represented by digital stock certificates. According to the filing these are …”uncertificated securities, the ownership and transfer of which are recorded on a cryptographically-secured distributed…

Recent articles and news coverage have demonstrated that there is a lot of confusion about what crowdfunding is and is not. To shed some light on this topic let’s look at the history of crowdfunding. History Crowdfunding as a concept and practice has been around since the late 19th century. Some might argue that it…

The Los Angeles Business Journal interviewed a few executives and early stage investors to get their reaction. The topic was crowdfunding rules and the new Regulation A+ from the SEC. http://labusinessjournal.com/news/2015/apr/12/capital-gain/?page=1&

Yesterday the SEC announced its adoption of final rules required to be adopted under the JOBS Act for a new and improved Regulation A now known as Regulation A+. The new rules purport to make capital-raising easier while maintaining strong investor protection. Basics The new rule divides offerings into Tier 1 and Tier 2. Tier…

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