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Crowdfunding › Securities and Exchange Commission (SEC) › Venture Capital

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 -
Farrell Fritz, P.C.

(Minimum Investment) Size Matters, When it Comes to Rule 506(c) Verification

Farrell Fritz, P.C. on

Before 2013, issuers were prohibited from using any means of general solicitation or advertising when raising capital in the private markets.  The prohibition was perceived by many to be the single biggest impediment to...more

Mayer Brown Free Writings + Perspectives

Small Business Capital Formation Report: Crowdfunding, Reg A & Private Companies

Mayer Brown Free Writings + Perspectives on

As discussed in our prior post, the Securities and Exchange Commission’s Office of the Advocate for Small Business Capital Formation recently issued its 2024 Annual Report....more

Mayer Brown Free Writings + Perspectives

Crowdfunding Report Shows Increasing Reliance on Regulation CF Deals & Disparities in Participation by Women & Minorities

Mayer Brown Free Writings + Perspectives on

Introduced under Title III of the JOBS Act, Regulation Crowdfunding (“Regulation CF”) was promulgated to allow startups and emerging companies to raise capital from a wider pool of investors through equity crowdfunding...more

Mayer Brown Free Writings + Perspectives

The SEC and Capital Formation

Mayer Brown Free Writings + Perspectives on

Not long ago, the SEC hosted the Annual Small Business Forum.  The Forum provides an opportunity to consider a broad array of issues affecting private companies as well as smaller public companies seeking to raise capital and...more

Akin Gump Strauss Hauer & Feld LLP

Inflation Adjustments to Thresholds for EGC Definition and Regulation Crowdfunding Become Effective

Akin Gump Strauss Hauer & Feld LLP on

Effective September 20, 2022, the Securities and Exchange Commission (SEC) increased the annual gross revenue threshold to qualify for emerging growth company (EGC) status from $1.07 billion to $1.235 billion. ...more

Foley & Lardner LLP

A Critical Look at Equity Crowdfunding

Foley & Lardner LLP on

Traditionally, the world of startup investing was not for “main street”, and was the private preserve of venture capitalists, venture debt lenders, private equity and angel investors (accredited investors), high net worth...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

Farrell Fritz, P.C.

Why Private Capital and Crowdfunding Markets Should be Nervous about President Biden’s Regulatory Freeze

Farrell Fritz, P.C. on

A freeze on government regulation is generally perceived by most people as being a positive development for private enterprise.  Not necessarily so, however, when the regulation being frozen is itself a reform of preexisting...more

Farrell Fritz, P.C.

Strict Traffic Rules for New Crowdfunding Vehicles – Part Three of Exempt Offering Amendments Deeper Dive

Farrell Fritz, P.C. on

You just raised $1 million in your crowdfunding offering under Title III/Regulation CF.  That’s the good news.  The bad news?  You now have over a thousand shareholders on your cap table, making it unwieldy, an administrative...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

Farrell Fritz, P.C.

In my Backyard: Real Estate Developers can Use Equity Crowdfunding both to Fund Projects and Convert Opposition

Farrell Fritz, P.C. on

Real estate developers should seriously consider equity crowdfunding to fund development projects for two major reasons, one of which has little or nothing to do with money. ...more

Farrell Fritz, P.C.

“Three’s A Charm”: House Adopts JOBS Act 3.0 To Fix Earlier Capital Raising Reform Efforts

Farrell Fritz, P.C. on

t’s not often that the House of Representatives votes nearly unanimously on anything noteworthy these days, but that’s exactly what the House did on July 17 in voting 406-4 for the “JOBS and Investor Confidence Act of...more

Wilson Sonsini Goodrich & Rosati

WSGR FinTech Update - June 2017

Wilson Sonsini Goodrich & Rosati on

Wilson Sonsini Goodrich & Rosati is pleased to present the June 2017 issue of the WSGR Fintech Update. This latest edition features an article discussing recent statements by SEC Commissioner Michael Piwowar and the SEC staff...more

McCarter & English, LLP

The State of Venture Capital in 2017

McCarter & English, LLP on

After three years of strong growth, venture capital financing activity slowed noticeably in 2016. According to data published by Pitchbook and the National Venture Capital Association, companies raised $69.1 Billion in 2016...more

WilmerHale

In Case You Missed It: Launch Links - April 2016 #3

WilmerHale on

Some interesting links we found across the web this week: - Postscript: Bill Campbell, 1940-2016 - He may not be the most globally famous person who passed away this week, but Bill Campbell’s quiet influence on...more

WilmerHale

In Case You Missed It: Launch Links - March 2016 #3

WilmerHale on

Some interesting links we found across the web this week: The SEC could change the requirements for investing in startups, and that’s not good - With its new equity crowdfunding rules soon to take effect, the...more

Faegre Drinker Biddle & Reath LLP

A Snapshot of New SEC Crowdfunding Rules

Faegre Drinker Biddle & Reath LLP on

At the end of October 2015, the Securities and Exchange Commission finally passed new federal crowdfunding rules. Crowdfunders will have to wait until April 2016, when the new rules "go live," to raise funds. Here are four...more

Morrison & Foerster LLP - JOBS Act

Advisory Committee on Small and Emerging Companies Makes Three Written Recommendations to SEC

Morrison & Foerster LLP - JOBS Act on

It was a productive morning at the last meeting of its current term for the SEC Advisory Committee on Small and Emerging Companies. The Committee, which has been renewed for two more years, approved three recommendations to...more

Adler Pollock & Sheehan P.C.

Glossary of Important Securities Regulation Terms and Definitions

Adler Pollock & Sheehan P.C. on

This Glossary is designed to provide law students taking Securities Regulation with a tool that will assist them in learning the basic language of securities law and achieve a working knowledge of the fundamental principles...more

Stinson - Corporate & Securities Law Blog

Crowdfunding And JOBS Act News Roundup – October 1, 2013

Stinson - Corporate & Securities Law Blog on

This article talks about how someone “raised $250K in 53 minutes . . . But the server for my site crashed and was exceptionally slow for about 20 minutes … I have no doubt that, for a growth round … I could raise a couple...more

Sands Anderson PC

The JOBS Act: Crowdfunding 1 – Introduction

Sands Anderson PC on

Many small-to-medium sized businesses urgently need equity capital but, because of legal restrictions and the expense of raising private venture capital, these firms often give up on traditional methods of capital raising. ...more

JD Supra Perspectives

Is Crowdfunding Dead On Arrival? A Legal Perspective...

JD Supra Perspectives on

"[Crowdfunding] lays the riskiest investments at the doorstep of those investors that can least afford the risk. And it won’t create jobs except for plaintiff’s lawyers…”...more

Stinson - Corporate & Securities Law Blog

Crowdfunding And JOBS Act News Roundup – May 10, 2013

Stinson - Corporate & Securities Law Blog on

It was another week of speculation as to when the SEC might finalize or propose any JOBS Act rule. Broc Romanek of the TheCorporateCounsel.net pointed to one article which said the current JOBS Act proposal on eliminating...more

Holland & Knight LLP

SEC's Division of Trading and Markets Grants Relief from Broker-Dealer Registration for Online Platform that Permits Investment in...

Holland & Knight LLP on

On March 26, 2013, the SEC's Division of Trading and Markets issued a no-action letter indicating that it would not recommend enforcement action under Section 15(a)(1) of the Exchange Act if a venture capital fund adviser and...more

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