More than three years after its adoption was mandated by the JOBS Act, the SEC recently adopted Regulation Crowdfunding. This regulation is intended to provide a mechanism whereby businesses seeking capital can use the internet to raise small amounts of money from a large group of investors by selling an ownership stake in the business. There are many details in the SEC adopting release, which is 686 pages long, but below is a brief summary of some of the key provisions:
Of course, there are many other rules that apply to issuers and to funding portals in connection with Regulation Crowdfunding. The securities and entrepreneurial services teams at Gray Plant Mooty are glad to answer any questions you may have.
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