Posts
April 03 2012
As I am writing this, a new law called the "Jumpstart Our Business Startups Act" (J.O.B.S. for short) has passed both houses of Congress and is sitting on the president's desk awaiting signature.
Among other things, the law will change the federal securities laws to make it easier for small companies to raise capital from total strangers by "crowdfunding" — soliciting small investments from hundreds (sometimes thousands) of individual…
March 27 2012
The JOBS Act is headed to President Barack Obama’s desk.
The House on Tuesday signed off on the final version of the package, aimed at helping small businesses and startups more easily raise capital by loosening various Securities and Exchange Commission regulations.
March 22 2012
The US Senate has just passed a bill that would legalize "crowdfunding" for small businesses. The CROWDFUND Act, an amendment to the JOBS Act bundle that was approved 73 to 26, lowers barriers for investment in companies that haven't yet gone public. That means that new companies — ideally, the next Google or Facebook — could be funded by small donations from the general public, either through a licensed broker or an accredited portal. In response to concerns that this would make it easier to defraud investors, the Act was amended to include stronger protections and oversight.
March 22 2012
Non-accredited investors interested in investing in young companies and entrepreneurs hoping to use the internet to raise money for their startups are one step closer to their dreams today after the United States Senate passed the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act, also known as the CROWDFUND Act.
March 15 2012
To start or expand a business, you need to raise money—and it can be harder to raise the money than to actually build a business. Banks now balk at lending to small businesses; their balance sheets remain in tatters from the mortgage meltdown. Entrepreneurs, unable to borrow what they need from banks, tap their credit cards, and then they must search elsewhere for the capital they need.
March 15 2012
It's no secret that the economy isn't what it used to be, but a bill introduced in the US House of Representatives last fall by Rep. Patrick McHenry (NC-10), which was passed overwhelmingly, might hold the key to a major jump start for budding entrepreneurs who are currently hampered by SEC rules and other regulatory burdens.
March 12 2012
It has been a whirlwind last few days in the crowd-funding world. For those of you who have not yet tuned in to this, there is legislation afoot, backed by the President and (so far) the House, that would enable, in effect, mini- IPOs as a way to fund startups. Forget everything you know about the rules of equity financing for seed-stage startups.
March 01 2012
Is crowdfunding legislation dead or alive? It depends on your perspective. Yesterday we both repeated the news reported by Reuters on Tuesday that the Senate would finally move on a crowdfunding act that had been passed by the House in November.