2016

Working the Crowd: A Primer for Funding Portals

By Alon Y. Kapen on February 9, 2016

Posted in Capital Markets Reform, Capital Raising, Crowdfunding, equity, funding platform, JOBS Act

One of the key investor protections of Regulation Crowdfunding under JOBS Act Title III is the requirement that offerings must be conducted exclusively through a single platform operated by a registered broker-dealer or a new type of SEC registrant, a funding portal. Although SEC registration for funding portals began January 29, 2016, intermediaries (funding portals …

New Investor Exit Strategy Buried in Highway Bill

By Alon Y. Kapen on January 18, 2016

Posted in 4(a)(1-1/2), Capital Markets Reform, equity, exit strategy, exit strategy; resale exemption; 4(a)(1-1/2), FAST Act

Buried in the recently enacted Highway Bill, officially the Fixing America’s Surface Transportation Act or FAST Act, is a new exemption for the resale of securities. The new resale exemption appears in the form of a new Section 4(a)(7) of the Securities Act of 1933 and essentially codifies the so-called 4(a)(1-1/2) exemption. New…