Regulation D has multiple exemptions but in a typical 506(b) private placement, by far the most common type of offering, there is no clear path to allowing family and friends to invest. Since Rule 504 and 505 do not allow for unaccredited investors
Can Companies Use Both 506(c) and Title III Crowdfunding Simultaneously to Raise Capital? Yes! Companies Can Use Both 506(c) and Title III Crowdfunding to Raise Capital! Simultaneously even. Crowdfunding has been used in many contexts to raise money via the internet, one of which is the sale of securities. Prior to May 16, 2016 crowdfunding of securities was…
There have been recent rules adopted by the Securities and Exchange Commission. Â The Bradshaw Law Group focuses on federal securities laws, such as private placement offerings, initial public offerings and other securities offerings. Â We represent clients from across the United States. Â While the Bradshaw Law Group has been in business, the securities and exchange commission…
Bernie Sanders’ campaign was fueled by crowdfunding. Bernie Sanders successfully launched himself as a legitimate party contender while largely being funded by small-time contributions by millions of people. He knows how to leverage the crowd and shows that the crowd and the internet can successfully leverage knowledge and financing to allow millions of people to…
With the very recent advent of equity crowdfunding, start-up businesses now have the opportunity to receive funding by offering and selling securities to the general public. In order to govern this new method of a securities transaction, the SEC issued Regulation CF (for CrowdFunding). In a bulletin published by the SEC concerning the advertisement of…
Since its enactment, issuers—from the smallest start-ups to the largest investments and hedge funds—have used Rule 506 under the Securities Act of 1933 in the sale of securities. The Rule, which is the most widely used exemption from the registration requirements of the Act, generally allows issuers to sell an unlimited amount of securities to…
May 16, 2016 is the day many of us have been waiting for!  Regulation Crowdfunding goes live.  Hopefully everything goes smoothly for my clients listing on portals. On Friday, May 13, 2016, the SEC released new Compliance and Disclosure Interpretations (“C&DIs”) regarding Regulation Crowdfunding. Rule 100: Crowdfunding exemption and requirements Question 100.01 Question: What information can…
A presentation on crowdfunding I gave at a networking conference. This Crowdfunding Presentation Highlights of the Recommended Final Regulation Rules The SEC prepared a release with highlights of the recommended final regulation crowdfunding rules. What is Crowdfunding? The Rules Would Permit a company to raise a maximum aggregate amount of $1 million through crowdfunding offerings…
North Carolina’s Patrick McHenry is at it again folks.  For those of you who don’t know, McHenry’s bill the “Entrepreneur Access to Capital Act” was the pioneer of the JOBS Act and largely integrated into the JOBS Act.  Hats off to Representative McHenry. On March 23, 2016, Representative McHenry introduced H.R. 4855 dubbed the “Fix Crowdfunding…
Ascenergy first crowdfunding investment fraud complaint. News broke today through Crowdfund Insider, about the SEC’s crowdfunding investment fraud complaint against Ascenergy, an oil and gas company that raised $5 million through 90 crowdfund investors. In late October, the SEC accused Ascenergy of crowdfunding investment fraud, specifically that: “Ascenergy has raised at least approximately $5 million…
