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…

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…

On December 4, 2015, President Obama signed into law the Fixing America’s Surface Transportation Act, known as the FAST Act. Although aimed principally at authorizing spending on highway and transit projects, the FAST Act includes several amendments to the Jumpstart Our Business Startups Act (“JOBS Act”) and other securities law provisions. The aspects of the…

The SEC prepared a release with highlights of the recommended final Regulation Crowdfunding rules  The recommended rules would, among other things, enable individuals to purchase securities in crowdfunding offerings subject to certain limits, require companies to disclose certain information about their business and securities offering, and create a regulatory framework for the intermediaries facilitating crowdfunding…

The Jumpstart Our Business Startups Act (“JOBS Act”) was passed by Congress in April 2012 has been implemented in stages through a contentious standoff between the SEC and Congress.  This sweeping reform was passed by Congress and the SEC was not given sufficient resources to implement the JOBS Act. Timeline for JOBS Act Implementation Title…

SEC reporting requirements as the house attempts to ease the process. In January 2015, the House of Representatives passed H.R. 37 named the Promoting Job Creation and Reducing Small Business Burden Act. The bill, among other things, proposes to ease reporting obligations for emerging growth companies (“EGCs”) and small issuers generally. Emerging Growth Company status…

A proposed portion of the Jumpstart Our Business Startups Act, or JOBS Act, has many people buzzing about a whole new opportunity. This new section in Title III of the Act will make it possible for the sale of crowdfunded equity securities through a medium called Funding Portals. People have been comparing these proposed Funding…

The Jumpstart Our Business Startups Act (“JOBS Act”) has created what is known as the Confidential Initial Public Offering (“IPO”), also referred to as the “quiet” or “silent” IPO. As part of the JOBS Act, this option is available only to smaller companies called Emerging Growth Companies (“EGCs”). EGCs are companies that have annual revenues of…

Dropbox and Box are two rival cloud-storage companies that are raising large amounts of capital lately, but they are doing it in different ways under the securities laws.  Dropbox.com is raising private capital through a private placement of securities while Box.com is raising public capital through an initial public offering.  Success and failure in an…

In the last of its major rulemaking proposals under the JOBS Act, on December 18, 2013, the U.S. Securities and Exchange Commission (SEC) voted to publish proposed rules to modify and develop Regulation A, the so-called (and little-used) “small offering exemption.”  The proposed rules would modify and expand Regulation A, which currently exempts from SEC…

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