Tagged: general solicitation

PUT OUT THE “FOR SALE” SIGN – New Version of C&DI 141.05: Allows General Advertising By Issuer In An Intrastate Offering

Invest Today Billboard Advertisement

In a prior post “SEC Releases New Guidance On Intrastate Offerings,” I briefly reviewed Compliance and Disclosure Interpretations (“CDIs”)  numbers 141.03, 141.04 and 141.05 released by the SEC in April relating to securities offerings made pursuant to Rule 147 and Section 3(a)(11) of the Securities Act of 1933 (a/k/a the “intrastate offering exemption”). While C&DI… Read More

SEC: Intrastate Crowdfunders Need To Be Careful When Advertising Via Social Media, Web


Intrastate crowdfunding exemptions are on the rise as legislators continue to exhibit interest in allowing small businesses to raise money online. However, several questions remain regarding how to effectively advertise these offerings without running afoul of securities regulations. According to an article in the National Law Review, the SEC has now clarified how small businesses… Read More

SEC Commissioner Stein Talks Blue Sky, JOBS Act in Speech to NASAA

Commissioner Kara M. Stein BW

In a double header day, SEC Commissioner Kara M. Stein also addressed the North American Securities Administrators Association (NASAA) at their 2014 Public Policy conference in Washington, DC. Introduced by NASAA President Andrea Seidt from Ohio, Commissioner Stein dove right in to addressing the pressing concerns of the NASAA. Blue Sky Review finds it origins… Read More

Keith Higgins Talks JOBS Act in Speech to Angel Capital Association

Keith Higgins Director SEC Division of Coporation Finance

The Director, Division of Corporation Finance at the Securities and Exchange Commission, Keith Higgins, gave the keynote address at the Angel Capital Association Summit in Washington, DC today. Higgins, who has been in the thick of rulemaking with the JOBS Act and correspondingly all types of crowdfunding, comments on the legislation and specifically addresses, general solicitation… Read More

SEC Director of Corporate Finance Talks JOBS Act in Speech

Keith Higgins Director SEC Division of Coporation Finance

In the keynote address delivered today in London to the Annual Institute on Securities Regulation in Europe, Keith Higgins, Director, Division of Corporate Finance at the SEC, talked JOBS Act and crowdfunding. The speech titled The New World of Capital Formation jumped right into the discussion of various portions of the JOBS Act that impact… Read More

WATCH: A Five Minute Rule 506(c) JOBS Act Primer From Bill Carleton

william carleton counselor@law

angelMD shared this video with us featuring Counselor@Law blogger Bill Carleton. In the clip, Carleton explains Rule 506(c) and general solicitation. It’s a good overview of changes brought on by Title II of the JOBS Act. In particular, Carleton does a great job of laying out the consequences of blowing the exemption. In short, don’t…. Read More

Advertising, Social Media and the New World of Crowdfunding

Social Media

Dos and Don’ts of General Solicitation and the Use of Social Media in Debt/Equity-Based Crowdfunding Online crowdfunding used to raise capital through the sale of debt and equity interests in companies has opened a new and much needed financing method for small and startup businesses. Online capital raising is also arguably at its core a… Read More

Crowdnetic, CrowdWatch Release Stats On 506(c) Marketplace


Last updated Sunday, January 26 at 11:52 AM Crowdnetic‘s umbrella of crowdfunding-related companies includes CrowdWatch, a deal aggregator for the nascent Rule 506(c) marketplace. It’s comprised of issuers Crowdnetic is calling PIPR’s, or Private Issuers Publicly Raising. As part of the JOBS Act under Title II, Rule 506(c) of Regulation D was implemented in September… Read More

FINRA Makes Crowdfunding A Priority For 2014

As they do every year, FINRA has released a letter outlining their priorities for the forthcoming year. Regulatory changes prompted by the passage and implementation of the JOBS Act are featured heavily in the letter as risks that mandate diligence on behalf of FINRA. Issues raised include… General Solicitation General solicitation, which before the amendments… Read More

General Solicitation: How SecondMarket Avoids The Ire Of The SEC


Annemarie Tierney is General Counsel for SecondMarket, an online marketplace for buying and selling illiquid assets in the United States. SecondMarket burst onto the scene during the run-up to the Facebook IPO by facilitating transactions in Facebook shares sold by Facebook employees to members of the public. For anyone interested in more information on SecondMarket’s… Read More

Howard Leonhardt Crowdfunding $15M From Accreds For Cal-X Stars Accelerator Portfolio

cal-x stars

Howard Leonhardt and his venture firm Leonhardt Ventures are making use of a new exemption under Rule 506(c) of Regulation D to solicit funding from accredited investors. The money will go towards funding a cadre of businesses participating in his Cal-X Stars accelerator. Leonhardt explains how Cal-X Stars is different from other accelerators. “Other leading… Read More

AHPInvest.com Ruffles Feathers With Private Placement Advertisement


The advertisement at the right was run by a Chicago-based company called American Homeowner Preservation (AHP). The crowdfunding site allows accredited investors to purchase shares of distressed mortgage pools. The irony came when the ad at the right ran on Bankrate.com, a site that specializes in finding the best CD rates among other things. Of… Read More

Crowdfunding News Roundup: October 28, 2013


Taylor English | Analysis of Crowdfunding Rules Relating to issuers This week we expect many interests in the world of securities to publish their breakdowns of the proposed rules for equity crowdfunding in the United States. We’ll be collecting them throughout the week. Here, law firm Taylor English posts a breakdown of how the proposed… Read More

Mary Jo White: JOBS Act “Facilitates Greater Transparency And Openness”


SEC Chair Mary Jo White addressed a crowd at today’s Managed Funds Association Outlook 2013 Conference in New York City. She spoke at length about the JOBS Act and specifically about Rule 506(c) and general solicitation. It may come as a bit of lip service for some industry professionals frustrated with the elongated implementation timeline of… Read More

Bohemian Guitars: “First In The United States” Equity Crowdfunding Campaign On SparkMarket


Offer Ongoing As Minimum is Reached. Georgia-based SparkMarket has announced the success of the first crowdfunding campaign on their equity platform. Bohemian Guitars has hit their goal of crowdfunding $100,000, raising money to grow their budding guitar-making business. SparkMarket is calling it a first in the United States. This campaign is the first in the… Read More

John Frankel of FF Venture Capital Talks About Advertising Under Jobs Act (Video)

John Frankel FF Ventures

Recently on CNBC, Venture Capitalist John Frankel commented on how the Jobs  Act allowed General Solicitation, or advertising, for accredited investors.  Frankel did not go into detail as to how his firm would determine if applicants were accredited but acknowledged they would incorporate a process for doing so.   ________________________   Visit NBCNews.com for breaking… Read More

The JOBS Act: Misreporting & Setting The Record Straight


In the wake of legalized general solicitation under Rule 506(c), some media outlets, individuals and pundits have shared information that is not accurate. See this infographic as an example, which appeared on Forbes. That isn’t to pick on Forbes or the creators of that infographic. Small blogs, historic newspapers… various sources at all levels fall… Read More

InvestedIn Announces Invite Only Investment Platform

InvestedIn Alpha

White label crowdfunding platform InvestedIn has announced a new platform targeting investment crowdfunding industry.  InvestedIn Alpha will launch an investment platform for introducing alternative investment firms to more than 70,000 accredited investors. A conduit for proven hedge funds and fund-of-funds managers and firms, InvestedIn Alpha connects investors, financial advisors and wealth managers directly with general partners at… Read More

Comment Period for JOBS Act Rule 506 Extended, Is the SEC About to Pivot?

Barack Obama Joe Biden John Boehner

September 23, 2013 kicked off an historic period in federal securities laws.  For the first time in 80 years companies would be allowed to publicly solicit investors in unregistered private placements so long as all of the investors were accredited.  The SEC did so under orders from Congress pursuant to what is known as Title… Read More


Knock Out Punch

Still Time to Comment on SEC’s Proposed Regulation D General Solicitation Rules? On July 10, 2013, the SEC issued its final rules allowing general solicitation and advertising in unregistered private placements, provided all of the investors were accredited, effective September 23, 2013.  However, on the same day the SEC took many observers by surprise when… Read More