Crowdfunding Now!

As we  forecast , today (10/30/15) the US Securities and Exchange Commission (SEC) voted 3 to 1 to allow small companies to raise up to $1 million online. Small firms and startups can now solicit anyone, regardless of their location, net worth or wealth, thereby giving small investors a chance to own what may be the next Facebook or Google (or not).  More likely, it means the day care center or restaurant down the street can now offer ownership stakes, or shares of stock, to their most supportive customers and clients. This is great news for women and Black-owned firms, which tend to be small and capital starved. The SEC vote approving rules implementing  Title III of the JOBS Act  means greater opportunity for minority, women and veteran firms to obtain equity funding. In addition to allowing firms to raise capital from anyone via a crowdfunding platform (a Financial Industry Regulatory Authority or FINRA registered internet website set up specifically for t...

"Notice is hereby given, pursuant to the provisions of the Government  in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange  Commission will hold an Open Meeting on Friday, October 30, 2015 at  10:00 a.m., in the Auditorium, Room L-002.  The subject matter of the Open Meeting will be: The Commission will consider whether to adopt rules and forms related  to the offer and sale of securities through crowdfunding under Section  4(a)(6) of the Securities Act of 1933, as mandated by Title III of the  Jumpstart Our Business Startups Act.  http://www.sec.gov/news/ openmeetings/2015/ ssamtg103015.htm  " Having said, in March, 2015 that the SEC wasn't going to do Title III,  we changed our minds last week and declared that the SEC was going to  approve Title III after all. https://www.linkedin.com/ pulse/sec-poised-implement- title-iii-jobs-act-cunningham- am-mba?trk=pulse_spock- articles We think they will also announc...

Yesterday, the U.S. Securities and Exchange Commission (SEC) announced "that it will hold its annual Government-Business Forum on Small Business Capital Formation at its Washington D.C. headquarters on Nov. 19, 2015. The morning session of the forum will feature panel discussions on exempt and registered offerings occurring after the passage of the JOBS Act." You can register for the forum  here .  We think the SEC will use this opportunity to release the final Title III crowdfunding rules. As I describe in my  book on the JOBS Act , small businesses and startups will be able to raise up to $1 million in equity (or debt) funding online via what are called Crowdfunding Platforms―online communities and websites. Imagine an eBay-like site that allows you to post your idea for a commercial venture online and then allows investors to purchase equity shares or stakes in it.  Recently,  two state securities regulators (Montana and Massachusetts) brought...

According to Financial Services Committee Staff, Congressman Patrick McHenry has offered to "strike Title III of  the JOBS Act, which was added by the Senate, and replace it with legislation that closely  mirrors the House-passed crowdfunding title and makes additional improvements." The proposed legislation, "entitled  the ' Startup Capital Modernization Act of 2014 ' ,  (H. R. 4565)  is primarily directed towards fixing some of the potentially fatal defects and ambiguities embedded in the original JOBS Act bill...here are some of the highlights: Raises crowdfunding limits from $1 million to up to $5 million. Allows self –certified financials for raises under $500,000 – and independently reviewed financials statements for raises between $500,000 and $3 million – leaving the more onerous audited financials for raises above $3 million. Eliminates the requirement that the SEC promulgate rules requiring detailed, registration statement-like non-financial di...