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Crowdfunding and the JOBS Act; Regulation D Rule 506(c)

Rewards based crowdfunding has proven to be a tremendous success in creating jobs, wealth, and bringing innovative and exciting products to market. However, for years companies were left in a lurch on the question of whether they could offer debt or equity based securities to “The Crowd.”

In April 2012, Congress passed the Jumpstart Our Business Startups Act (JOBS Act). Title III of the Jumpstart Our Business Startups (JOBS) Act contains key provisions relating to securities offered or sold through crowdfunding.

There are two exciting aspects to crowdfunding.  The more traditional venue is the offer of debt or equity based securities through crowdfunding portals.  The other is the opportunity to become a crowdfunding portal, helping to introduce crowd investors to company innovators, and process micro-investments.

We help companies that want to raise capital through crowdfunding, structure their offerings. Under new rules, the general public can invest in capital raising by start-up companies through crowdfunding, which generally refers to the use of the Internet by small businesses to raise capital through limited investments from a large number of investors.

Our South Florida based Business Law Attorneys serve clients in Palm Beach County, Broward County, Miami Dade County, and throughout Florida.

We can guide you through how debt and equity based crowdfunding works, including the income and net-worth requirements prospective investors need to meet, and the information that must be available from issuers, broker-dealers and funding portals.

We also help individuals and companies that want to help others engage in debt and equity based crowdfunding register as a crowdfunding portal.

These regulations can sound daunting, especially in light of the fact that you’ll have to jump through all these hoops while launching and managing your business.  We understand, because our Florida crowdfunding lawyers have been in your shoes, not only as Florida crowdfunding attorneys, but as business people.

If you’re interest in learning more about raising money for your company, please contact us.

We want to hear your story and share ours.