We have a law, so why should I wait?
We know, we know — it’s all so exciting! We’ve been waiting and watching as the first crowdfunding bill passed the House in November with an astounding 407 votes. Then we tried to sit tight through the holidays while everyone, including Congress, was on vacation (but sitting tight was difficult now that crowdfunding was so […]
Let’s (NOT) make that video!
Hello, entrepreneurs! Are you busily working on that killer video you’re going to use to raise funds once crowdfunding is legal? Have you recruited top film talent to really sell your company and your terrific business plan? Will it be a tribute to your company’s stellar qualities? I hope not. I really hope not. Yes, […]
What due diligence looks like – Part 2: Checking the corporate form
The first installment of our Due Diligence Series addressed a fundamental issue in crowdfunding due diligence: making sure that the offered shares have been properly issued. This installment concerns an equally basic and essential issue: making sure that the company whose shares you are buying has been properly incorporated. There are many corporate forms a company can use, such […]
New crowdfunding police not simply a concern for shady operators
Massachusetts has a new securities department devoted entirely to monitoring the investment crowdfunding industry. This is an important milestone for an industry that depends on a high level of public trust in order to thrive. The Internet Crowdfunding and Offering Watch Department, or I-CROWD, will initially focus on new Reg. D Rule 506(c) offerings. Effective […]
Preparing for an A+ grade: Are you eligible for Reg A?
Sure, there has been a lot of talk of Regulation A. Under Tier 2 of Regulation A, you can raise up to $50 million from the crowd – everyday folks (under Regulation A, investors do not need to be accredited investors). As a company you might be thinking, great, sign me up and how quickly can I […]
An Intern’s Thoughts on Crowdfunding and Compliance
*Our summer intern, Diana Leung, who will be heading to Georgetown University in the fall, weighs in on disclosure compliance. The brilliant start-up companies that define crowdfunding are transforming the meaning of the American Dream. Citizens not only have an equal opportunity to achieve prosperity through the traditional conduits of society but can now do […]
Filing a Form C – Who is signing?
You are almost at the home stretch in your Regulation CF offering; however, there are still a few more formalities that need to occur. First, you will need to identify who will be signing on your Form C. The SEC requires the following individuals to sign: Individual who will sign on behalf of the company […]
Preparing for Reg CF: When do your financials go “stale”?
If you are about to launch a crowdfunding offering under Regulation CF, you should make sure you know when your financial statements will go “stale” (i.e., become too old). Under the disclosure requirements of Regulation CF, to “conduct” an offering (meaning to have an offering open and able to take investments) you must be using financials that are […]
Buyer beware: securities are not always what they seem…
We love crowdfunding here at CrowdCheck, and we really believe it is a great opportunity to invest in some interesting, novel and amazing companies. And you may have sorted through the companies to discover what you believe will be the next Facebook or Google. And you may be right and may have found your pink […]
Preparing for an A+ grade: State antifraud authority and your notice filings
In an earlier blog post, we mentioned that while Regulation A preempts state review of offerings under Tier 2 of Regulation A, states are still given the authority under Section 18 of the Securities Act to require issuers selling securities under Regulation A to make notice filings and pay filing fees before they can offer […]