August 6, 2015 was a productive day for the Staff of the Securities and Exchange Commission’s Division of Corporation Finance on the issue of the prohibition on general solicitation in the context of online private offerings under Rule 506(b). My last blog post, entitled “It’s Complicated”: Establishing “Preexisting Relationships” with Prospective Investors, analyzed the
general solicitation
“It’s Complicated”: Establishing “Preexisting Relationships” with Prospective Investors
In my last post, I blogged about online funding platforms. In that post, I described the typical model of indirect investing through a special purpose vehicle (“SPV”) with the platform sponsor taking a carried interest in the SPV’s profits from the portfolio company and no transaction fee, as a means of avoiding broker-dealer regulation.…
What’s the Deal with Online Funding Platforms?

By Alon Y. Kapen on
Posted in Capital Raising, Crowdfunding, equity, funding platform, general solicitation, JOBS Act, Rule 506
Lately I’ve been approached by current and prospective clients about online funding platforms, either by folks interested in forming and operating them or those interested in raising capital through them. There seems to be a lot of confusion surrounding how they work and what the legal issues are, so here’s my attempt to bring some…
Will Your Demo Day Presentation Violate the Securities Laws?

By Alon Y. Kapen on