Sarah Hewitt Presented at Crowdfunding WebcastOn June 17, 2016 by Schnader
On June 17th, Partner Sarah Hewitt took part of The Knowledge Group’s webcast exploring “The Final Federal Crowdfunding Rules: Where Do We Go from Here?”
On Oct. 30, 2015, the Securities and Exchange Commission (SEC) issued its long awaited final rules implementing Title III of Jumpstart Our Business Startups (JOBS) Act of 2012. The federal crowdfunding rules allow eligible businesses to raise up to $1M during a twelve-month period by the issuance of securities offerings to the public. The intent of the statute is to afford start ups and other small businesses the opportunity to raise capital without many of the restrictions and burdens imposed by the registration requirements of Section 5 of the Exchange Act and other federal securities law provisions. A critical aspect of federal crowdfunding is the ability of issuers to reach small retail investors as well as accredited investors. In light of the foregoing, it is not surprising that many small companies and their advisors, who cannot raise capital through more traditional means, look to regulation crowdfunding as a solution to their capital needs.
In this two-hour live webcast, Sarah Hewitt and a panel of distinguished professionals and thought leaders helped investors understand the important aspects of this significant topic. They provided an in-depth discussion of federal crowdfunding under the final rules. The speakers also offered practical suggestions on how eligible companies can successfully navigate the federal crowdfunding rules, including managing the compliance costs and risks associated with entering the world of federal securities regulation.
Key topics included:
Regulation Crowdfunding – Overview
Advantages and Disadvantages – The “Business” Hurdles Small Businesses Face
The Legal Risks
Practical Suggestions on Preparing the Business for A Successful Offering
Trends Outlook – Is Federal Crowdfunding Going to Take Off?