Last Friday, the SEC adopted final rules to allow companies to offer and sell securities through crowdfunding. These new rules are designed to give smaller companies access to additional investment options and, in addition, to provide investors with additional protections. As I discussed in a prior blog post…
The Securities and Exchange Commission (“SEC”) yesterday adopted new rules lifting the ban on general solicitation and/or advertising for funds for certain private offerings of securities. The SEC took this action in order to implement the federal JOBS Act, which was passed by Congress in April 2012. The…
Ever since the passage of the federal JOBS Act earlier this year, entrepreneurs and startups everywhere are talking about “crowdfunding.” But what is crowdfunding, and why is everyone so excited about it now? Basically, crowdfunding describes the collective effort of individual investors who pool their resources, usually via…
Many entrepreneurs (and their lawyers) are eagerly awaiting the new rule from the Securities and Exchange Commission (SEC) that will allow companies to engage in general solicitations, provided that securities are sold only to “accredited investors.” Originally, the SEC was directed to implement these rules by July 4,…