The new federal crowdfunding program leads to many reasons why start-ups need to be cautious.
Now, the federal framework for equity crowdfunding to non-accredited investors lets startups sell stock to the public. It is sold through Securities and Exchange Commission [SEC]-registered funding portals or broker-dealers. The SEC’s rules implementing the crowdfunding provisions in Title III of the JOBS Act goes into effect on May 16, limiting startups to raising $1 million through this type of crowdfunding every 12 months.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
