Topic: sec

Is Crowdfunding the Best Way to Raise Money for My Startup? (Spoiler Alert: Probably Not)

Excited about the arrival of crowdfunding? You shouldn’t be, writes Brian Korn of law firm Pepper Hamilton: “When compared to other forms of private placements, crowdfunding is not a feasible option.” He explains: “Crowdfunding began with the concept of small enterprises engaging in online capital-raising through social media and raising funds from people they did… Read more »

Funding Your Startup: You Should Know…

“You’ve even formed a company to develop your concept into a working technology. Now what? You’ll need money to support yourself, recruit a team, rent space, obtain equipment, and build your technology.” (Ervin Cohen & Jessup) Entrepreneurs know that a great business idea doesn’t get very far without funding. But what to know about funding… Read more »

Latest Need-to-Know in Immigration Law

For business owners and HR managers, a quick look at three top stories in immigration law: comprehensive immigration reform, the 2014 H1-B visa season, and SEC fraud charges in the E-B Immigrant Investor Program. For your reference, from immigration and employment lawyers on JD Supra: 1. Immigration reform is poised to become a reality: “The… Read more »

JOBS Act Update: SEC Proposes Rule to End Advertising Ban for Stock Offerings

In late August, the Securities and Exchange Commission proposed a new rule that would lift the long-standing ban on advertising private securities offerings. The rule, the first of a number of planned regulatory changes designed to help small and emerging growth companies raise capital as mandated by the JOBS Act, is open to public comment… Read more »

Crowdfunding & Startup Capital: A Look at Legislative Initiatives to Ease Restrictions

“There has been a lot of talk recently about a phenomenon called crowdfunding, a new type of fundraising that relies on social media and the Internet to raise small amounts of capital from large numbers of individuals. Despite the talk, crowdfunding remains impermissible under the securities laws absent a costly registration with the SEC and… Read more »

Startup Financing: SEC Sending Mixed Signals with ‘Bad Actor’ Rule?

We hate to be the ones to rain on your parade, but after yesterday’s sunny outlook on legislative and regulatory efforts to loosen restrictions on crowdfunding, we couldn’t help but notice an update today highlighting a different signal from the Securities and Exchange Commission: its proposed new “bad actor” rules that appear to contradict the… Read more »

Crowdfunding: The Future of Startup Financing?

“Is [crowdfunding] the future of startup financing? The House of Representatives overwhelmingly passed HR 2930, the McHenry Crowdfunding Bill, in a 407-17 vote. First proposed in September of 2011, the McHenry Crowdfunding Bill went through just one revision in committee and is now in front of the Senate. If the Senate approves, crowdfunding looks to… Read more »