With President Obama set to sign the Jumpstart Our Business Startups Act on Thursday, it seems the race is on to create a crowdfunding portal and to start making money. Crowdfunding has been around for a long time and the use of a crowdfunding portal dates back several years. Now there is a crowdfunding accreditation … Read more »
Tag: Jumpstart Our Business Startups Act
Steps to Determine if an Investor is Accredited
Private funds will be able to advertise and solicit for investor, provided all of the investors are “accredited investors.” The Jumpstart Our Business Startups Act will dramatically change the way capital raising for private funds operates. The drawback is the loss of 35 non-accredited investors in the fund. That exception has been eliminated. Funds will … Read more »
Compliance Bits and Pieces – JOBS Act Edition
The Jumpstart Our Business Startups Act is soon to be law. Here is a smattering of post that caught my attention. In spite of what you may heave heard, the Senate just effectively killed crowdfunding by Alexander J. Davie The replacement crowdfunding bill is significantly more complex and fraught with liability for issuers. While even … Read more »
Accredited Investors and the JOBS Act
The Jumpstart Our Business Startups Act repeals the SEC’s ban on general solicitation and advertising under Rule 506. That is the exemption from registration used by most private fund managers. Is this a good thing? I didn’t like the ban, mostly because it was so broad. The SEC gave little guidance as to what was … Read more »
Next Steps for the JOBS Act
The Jumpstart Our Business Startups Act, as amended by the Senate, was voted on by the House of Representatives yesterday and passed 380 to 41. That makes it a very bi-partisan bill, even though all 41 “Nays” were Democrats. If I remember my Schoolhouse Rocks song correctly, it’s up to the President to sign it … Read more »
Lifting the Ban on General Solicitation and General Advertising
On Thursday afternoon, the US Senate passed the Jumpstart Our Business Startups Act, a bill designed to make it easier for small companies to raise capital. The centerpiece of the legislation is the crowdfunding provision. However, the Senate passed an amendment to that section of the legislation. That means the Senate version and the House … Read more »