Crowdfunding Now!

AGENDA 9:30 a.m. Co-Chairs Stephen Graham and Sara Hanks call meeting to order Introductory Remarks by Chair Mary Jo White and Commissioner Kara Stein 10:00 a.m. Consider “Accredited Investor” Definition Recommendation as discussed at May 18th Meeting 10:30 a.m. Regulation A+ Update and Review Update from SEC Division of Corporation Finance staff on the usage of Regulation A+ in its first year Presentation from Paul Elio, CEO and Chairman of Elio Motors Inc., a company that conducted a Regulation A+ offering Discussion by Committee Members 12:00 p.m. Lunch Break 1:30 p.m. Regulation A + (Continued) Presentation by Daniel Zinn, General Counsel, OTC Markets Group regarding secondary trading of Regulation A+ shares 2:30 p.m. SEC Proposal to Amend the “Smaller Reporting Company” Definition Briefing from SEC Division of Corporation Finance staff regarding the Commission’s proposal issued June 27, 2016 to amend the “Smaller Reporting Company” Definitio...

The summary below was written by the Congressional Research Service, a nonpartisan division of the Library of Congress. Fix Crowdfunding Act This bill amends the Securities Act of 1933 (Act) to increase from $1 million to $5 million the aggregate amount of securities sold to all investors by an issuer that qualify for the crowdfunding exemption from certain prohibitions relating to interstate commerce and the mails. The bill amends the Jumpstart Our Business Startups Act (JOBS Act) to declare that a crowdfunding portal shall have a reasonable basis for disqualifying issuers from offering securities through the portal if through a background check it has found that an issuer has made an untrue statement of a material fact, omitted to state a material fact necessary to avoid making misleading statements, or engaged in fraud or deceit. No intermediary (crowdfunding portal) shall be liable for an issuer's material misstatements and omissions unless, in connection with the offer ...

https://youtu.be/1aM-IKPPJeg ‪#‎ crowdfunding‬  session at @WallStreetProj  #‎ WSPES2016  ‬ https://youtu.be/1aM-IKPPJeg  via @YouTube

We note with interest a recent study from the University at Buffalo School of Management that shows "high quality photos and video, previous crowdfunding success and positive comments from backers are the keys to a successful campaign." This syncs with what we uncovered in our two books, " The JOBS Act: Crowdfunding for Small Businesses and Startups " and in " Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns ." According to news reports, the University at Buffalo School of Management study "found that by receiving these signals, potential investors..gain valuable information that motivates them to participate and increases the likelihood of a project achieving its funding goal." One part of the analysis we found in error, however. One of the authors of the study was quoted as saying that "These sources are important because backers of crowdfunded projects have less access to information than typical priv...

I attended the Government-Business Forum on Small Business Capital Formation held at the US Securities and Exchange Commission on November 19th.  According to the SEC, one of the Forum's goals "is to .. highlight perceived unnecessary impediments to small business capital formation and address whether they can be eliminated or reduced. Each forum seeks to develop recommendations for government and private action to improve the environment for small business capital formation, consistent with other public policy goals, including investor protection. Participants in the Forum typically have included small business executives, venture capitalists, government officials, trade association representatives, lawyers, accountants, academics and small business advocates..the format of the Forum typically has emphasized small interactive breakout groups developing recommendations for governmental action."  Let me just say that the Forum was a  confirmation of some ...

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...