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...

As one article notes, "The Texas  State Securities Board, led by Commissioner John Morgan, is scheduled to meet August 27, 2014 to pass the new (crowdfunding) rules slated to go into effect the first of September." Another article states that "Texas as is now the 13th state to create its own equity crowdfunding rules and by-pass the JOBS Act. The U. S. SEC has not released or finalized the federal rules and some states see the billion dollar opportunity equity crowdfunding presents and they have decided to take the bull by the horn and jumpstart small business and economic development in their state. Section 3(a)(11) of the 33 Act exempts from registration any security that is part of an offering sold only to persons residing within a single state if the company is also doing business in that state. So, as long as a company complies with the federal intrastate exemption, it only needs to be concerned with the state’s crowdfunding rules when conducting a crowdfundin...

In this short video, I discuss crowdfunding alongside Advisory Board Member Tony Cord. http://levick.com/blog/2014/07/24/william-cunningham-and-tony-cord-equity-crowdfunding

As I noted in the Washington Post, in about six to nine months, the Securities and Exchange Commission will put forward rules that will govern how companies can raise equity capital using crowdfunding. See:  http://www.washingtonpost.com/business/capitalbusiness/commentary-the-quest-for-crowdfunding-enters-a-complicated-but-critical-phase/2012/12/23/d15ef280-4939-11e2-ad54-580638ede391_story.html My sources tell me that the SEC will lean heavily toward registered broker/dealers to take the lead, as evidenced by the fact that FINRA issued the first official regulatory paperwork related to Crowdfunding.  http://crowdfundingnow.blogspot.com/2013/01/first-regulatory-paperwork-related-to.html This has the added benefit that the JOBS Act gives several preferences to broker/dealers, as I note in my book:  http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X Related articles First Regulatory Paperwork Related to Crowdfunding Released Commentary: The...