Bad Actor, Bad Actor, Whatcha gonna do?

What are we gonna do to screen for you… Sorry, as a child of the 80s I couldn’t resist, but my bad version of the classic “Cops” theme does reflect a serious question: how are issuers and intermediaries going to comply with the new “Bad Actor” disqualification provisions of Rule 506, Regulation A, and Regulation […]

Entrepreneurs: Don’t get burned by the boilerplate

As an entrepreneur you are probably concerned about saving money. Every dollar saved extends your runway just a little bit longer, lets you fight another day, and lessens the need for outside funding. Fortunately, in many ways things are better than ever before for small businesses — computing power is cheap, off-the-shelf or web-enabled software […]

Due Diligence: It doesn’t just protect investors

We often talk about how due diligence can help protect investors from fraudulent investments, but it is important to mention that properly done due diligence can also protect every other party to a sale of securities. An example of this is going on now in Canada. As reported by JD Alois in this excellent article […]

The comment period is open, the crowdfunding period, not so much.

So did you watch the live feed of the SEC meeting discussing the proposed crowdfunding rules? We did. Fascinating stuff. Of course this is just the start; now we wait for the proposals and will analyze them here. In the mean time remember: you can’t seek investment via crowdfunding yet, the rules aren’t final, if […]

506(c): Some Perspective

So, did you wake up this morning to find a pile of investment money, or some new shares in a great company, or a bunch of new job offers falling from the sky? Me neither; bummer eh? In fact, unless you were looking really closely you might not have realized that anything had changed at […]

Getting ready for seeking investment – Part 1: Having the right corporate form

So, you are an entrepreneur considering seeking investment via new Rule 506(c), very exciting! I’m sure you have all types of things running through your mind: pitch decks, projections, and where you will spend that sweet, sweet investment cash (equipment, labor, and marketing I’m sure). However, there are some other, more mundane things you should […]

Ladies and Gentlemen, Start Your Engines (on September 23rd)!

We now have final General Solicitation (pdf) and Bad Actor (pdf) rules in the Federal Registry. We also have an effective date for the rules, September 23rd. This means that on the 23rd you can start soliciting (consistent with all the applicable rules and regulations). What to do before then? Prepare, decide which B/D, if […]

SEC passes rule allowing general solicitation – but don’t do it yet!

Today the SEC passed rules eliminating the ban on solicitation for certain accredited-only investments made pursuant to Section 506(c) of Regulation D. So does this mean you can start email bombing people to invest in your company? Or hire William Shatner to do a pitch on late-night tv? NO! At least not yet. Despite some […]