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Improving Legal Documents in Crowdfunding: Get Rid of the State Legends!

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By Mark Roderick CrowdFunding Beat  Sr. contributing editor and crowdfunding attorney with Flaster/Greenberg PC. I see lots of offering documents like this, with pages of state “legends.” The good news is that in Crowdfunding offerings – Title II (Rule 506(c)), Title III (Regulation Crowdfunding), and Title IV (Regulation A) – you can and should get rid of them.               The legal case is pretty simple: Before 1996, states were allowed to regulate private offerings. Every state allowed exemptions, but these exemptions often required legends, differing from state to state. The National Securities Market Improvement Act of 1996 added section 18 to the Securities…

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Commonwealth Capital Adds New Crowdfunding Chapter to Its Premier E-Book,

Secrets of Wall Street E-Book (PRNewsFoto/Commonwealth Capital LLC)

CHICAGO, July 28, 2016 /PRNewswire/ — Commonwealth Capital LLC, a pioneering provider of Corporate Finance Advisory and Regulation Crowdfunding services, announced today that it has updated its popular e-book with a new Chapter Two dedicated entirely to crowdfunding. The definition of the term “crowdfunding” has evolved in recent years. The term was originally used for donation-based crowdfunding only, but is now used to define capital-based crowdfunding — also known as Regulation Crowdfunding — under Title II (2) and then under Title III (3) of the Jumpstart Our Business Startups (JOBS) Act of 2012. The JOBS Act has significantly leveled the investment playing field, encouraging a growing…

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iDisclose Partners With Republic on Its Title III Crowdfunding

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Crowdfund Beat News, iDisclose Provides Republic Users With a Low Cost Legal Solution to Comply With Title III Crowdfunding Regulations NEW YORK, NY–(Marketwired – July 18, 2016) – iDisclose announced today that it is proud to be a part of Republic’s Title III crowdfunding launch. The AngelList spinoff and funding portal officially launched today with iDisclose as its exclusive Form C service provider. Each Republic issuer is provided with access to the iDisclose application to prepare their Form C at a fraction of the time and cost of using a traditional lawyer or law firm. Using a series of adaptive questions, similar to TurboTax TM,…

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A Reflection of Online Money Lending

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By Steve Cinelli , CrowdFund Beat Sr. Editor, @stevecinelli Some many months back, in fact prior to their listings, I wrote a piece questioning the lofty valuations of the marketplace lending platforms (LC and ONDK) as they entered the public markets.  The basic thesis was recognizing the fundamental business these platforms engaged, i.e., money lending, and how others in the same space, albeit not as “technology positioned”, delivered the same product and/or service, and I thus intimated that the newbies should be valued with similar metrics to the incumbent financial institutions. In observing the platforms’ performances over the last year, as well as evolving market conditions,…

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Unregistered broker-dealer services can be illegal…and costly.

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By Tim Boykin Corporate Counsel at WealthForge, Crowdfund Beat Guest Contributor, Last month, in our blog post “Unregistered? You might be breaking the law… and the SEC is watching.,” we discussed the importance of the registration requirement of Section 15(a)(1) of the ’34 Act. We suggested that Section 15(a)(1) requires registration as a broker-dealer when a person effects or induces the purchase or sale of securities. Recent SEC action suggests that the SEC is construing the registration requirement broadly and is bringing related enforcement actions. The previous post discussed a specific SEC enforcement action involving an unregistered online platform. This post dives a bit deeper into the…

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A CEO’s Perspective Crowdfunding with “REG CF Title III”

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By Terry White is the Founder/CEO of athletic apparel company WOLACO. Crowdfund Beat Gust Post Since Title III of the Jobs Act just recently went into effect we decide to get a closer look at how CEOs actually view the new legislation in respect to their future financing needs. We had an opportunity for a Q&A with Terry White the Founder/CEO of athletic apparel companyWOLACO.  He was able to share with us the company’s history as well as their first crowdfunding experience with Kickstarter and his perspective on Title III. CT: What does WOLACO mean? TW: WOLACO is an acronym for Way of Life Athletic Co. I thought…

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REPORT: Is Marketplace lending A temporary phenomenon?

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Crowdfund Beat Data Center: Deloitte Report MPLs are online platforms that enable investors to lend to retail and commercial borrowers. Unlike banks, MPLs do not take deposits or lend themselves; as such they do not take any risk onto their balance sheets. They make money from fees and commissions received from borrowers and lenders. The rise of Marketplace lending has urged many commentators to highlight the potential disruption that such new business models may bring to traditional banking. Our research presents a different opinion and instead concludes that MPLs do not currently have the competitive advantage needed to threaten this traditional banking model. However, while…

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SEC’s Guidance On Advertising By “REG CF Title III”Issuers

SEC’s Guidance On Advertising By “REG CF Title III”Issuers

By Mark Roderick Shareholder, Flaster/Greenberg P.C. CrowdFund Beat ‘s  Sr.Guest Editor. The SEC just provided guidance for Title III issuers in the form of Compliance and Disclosure Interpretations. You can read the CD&I’s themselves here. Before Filing Before filing Form C (the disclosure document used in Title III) and being listed on a Funding Portal, a Title III issuer may not take any action that would “condition the public mind or arouse public interest in the issuer or in its securities.” That means: No Demo Days No email blasts or social media posts about the offering No meetings with possible investors After Filing Once a Title III…

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New CrowdFunding Rules are a Game Changer

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By Joel Block CEO at Bullseye Capital MarketPlace Partners, LLC , CrowdFund Beat Guest Post, This was an historic week in the securities industry. Rules that have been in place for more than 80 years were smashed and replaced with new, modern rules that allow citizens from every walk of life to invest in start-up companies right on the Internet. In the past, private placements had to be kept private which effectively meant that you had to be a millionaire to get into a private placement and make any money. Nothing seems more un-American than having to be a millionaire to make money in the United States…

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CrowdEngine First to Offer Regulation CF Crowdfunding Software

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Crowdfund Beat News Wire,  Washington, D.C. – May 16, 2016 – CrowdEngine to demo it’s Compliance Engine™ features for the new Regulation Crowdfunding rules today at the Capital Washington D.C. for Members of the House, Senators, and 300 other well respected guests.  CrowdEngine’s compliance automation solution and white-label crowdfunding software allows entrepreneurs to launch funding portals in a fraction of the time than building from scratch to achieve lower costs, and better investor experiences. “We are proud to be the first to offer a solution for funding portals to offer securities under the new Regulation Crowdfunding rules.   Our secure, cloud-based compliance automation platform is trusted…

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Understanding Securities Law to Start Your Business?

Understanding Securities Law to Start Your Business?

By Samuel E. Whitley,  Whitley LLP Attorneys at Law. CrowdFund Beat Guest post, The following is a guest post written by Samuel E. Whitley, a valued WealthForge partner and managing partner at Whitley LLP Attorneys at Law. YES. Or you need to hire someone who does. While some small businesses may not deal with public or private offerings, many companies do. Often a company will want to raise capital through a public offering, or via the Internet (crowdfunding) for instance. Because of this, all business owners should have a working knowledge of securities law.       What are Securities? Essentially, a “security” is defined as…

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Better Safe Than Sorry: A Quick Guide to Due Diligence

Better Safe Than Sorry: A Quick Guide to Due Diligence

By Maria Jones | Partnership Manager @ investors angel  Crowdfund Beat Guest Editor, Better Safe Than Sorry: A Quick Guide to Due Diligence “Carefully and diligently conduct your Due Diligence”, “Do not spare any expense when conducting Due Diligence” – these phrases are said by practically any guide for investors, concentrated on equity crowdfunding. However, not all of these guides and resources go into depth on what exactly due-diligence presents in and of itself. This process has been in business practice for quite awhile now, as such they did not see much sense in telling everyone about something that is so well-known. However with the emergence…

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HEADLINE NEWS

ForbesTitle III Crowdfunding For Real, Part IIForbesTitle III of the JOBS Act went into effect last year, and many entrepreneurs and small businesses are curious about if it works and how. I had the pleasure of interviewing several companies that have gone through “equity crowdfunding [...]

Crowdfund InsiderIllinois Crowdfunding Starting Strong in 2017 - Crowdfund InsiderCrowdfund InsiderWhile it took longer than expected to get here, Crowdfunding for Illinois businesses is now officially up and running and its full steam ahead. To mark the.and more » [...]

Crain's Cleveland Business (blog)Cleveland Whiskey founder raises a glass to the crowdfunding processCrain's Cleveland Business (blog)Tom Lix, the founder and chairman of Cleveland Whiskey LLC, is part of a Forbes roundtable that looks at how the introduction of so-called [...]

EntrepreneurThis Crowdfunding Category Will Blow Up in 2017, Says the CEO of ...EntrepreneurDavid Mandelbrot believes these kinds of products will be big on the crowdfunding platform this year. He also shares his tips for successful fundraising.and more » [...]

Triple Pundit (registration) (blog)Will Equity Crowdfunding Accelerate Impact Investing in 2017?Triple Pundit (registration) (blog)This past May, a new world of possibilities opened up for social entrepreneurs around the country. The Securities & Exchange Commission (SEC) approved [...]

Science DailyCrowdfunding expands innovation financing to underserved regionsScience Daily"But crowdfunding has opened up funding to everyone else." The article was published in a recent edition of the journal Science. For the study, researchers analyzed data from 2009 to 20 [...]

Crowdfund InsiderReal Estate Crowdfunding Marketplace, Sharestates, Hits $275 Million in Loan VolumeYahoo Finance18, 2017 /PRNewswire/ -- Sharestates, a real estate investment marketplace, has originated $275 million in loans since the platform launched in 2015, making it one of the l [...]

EntrepreneurCan Equity Crowdfunding Be Fixed? - EntrepreneurEntrepreneurWith the adoption last year of the Regulation Crowdfunding (Reg CF) exemptions by the Securities and Exchange Commissionprivate companies can now raise ...and more » [...]

KFDXWhat the Tech: Downfalls of Crowdfunding WebsitesKFDXSupporters of an IndieGoGo project learned this week the company they invested in, has closed shop. Its page on IndieGoGo says it is now under review by the IndieGoGo company. Developers of "The Lily Drone" promised an [...]

The News InternationalSingaporean strangers save Pakistani boy's life via crowdfundingThe News InternationalSINGAPORE: A group of strangers pooled together the funding required for a 10-year-old Pakistani boy's treatment, who has registered a strong recovery after almost suc [...]

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