If you are a founder of a startup, you may be excited about the proposed new changes to the SEC general solicitation rules that were part of the JOBS Act for all accredited offerings under Rule 506. Don’t worry, it’s okay to be excited, I am too. But there is a whole lot you need to know before you do anything in regards to these proposed rules, which are not final yet. Continue reading →
All posts tagged solicitation of funds
Everyone is very excited about the new crowdfunding-for-securities law. Crowdfunding is a great idea–in concept. And now we have a new law which is about to make crowdfunding for securities a reality, at least in some sense. The trouble? The law is onerous. It is going to be difficult and expensive to comply with. The burdens of the new law are plenty, but the benefits of the new law are capped. In short, the crowdfunding law as currently written is, in my opinion, needs to be fixed. I don’t mean to be just negative here. Crowdfunding enthusiasts should take their enthusiasm back to Congress to try to get the law fixed. Here are a few of my complaints about the law as it currently stands and recommendations for improvements.
The SEC, Accredited Crowdfunding, And The Art Of Hair Splitting
Summary of Remarks of Joe Wallin to Section 201 of the JOBS Act Given at a Presentation to the Angel Capital Association, Northwest Regional Meeting, held in Seattle, Washington, on May 2, 2012.
Last week I spoke on a panel with Dan Rosen,Tom Alberg, William Carleton and Gary Kocher at the Northwest Regional Meeting of the Angel Capital Association.
I put together these materials as a guide to my remarks. After I prepared them, the Federal Regulation of Securities Committee of the Business Law Section of the American Bar Association (ABA) submitted its comments to the Securities and Exchange Commission (SEC) on Section 201 of the JOBS Act. I have added excerpts from the ABA Committee Letter where helpful to understanding the material.