Business Success & Solutions Seminar - Crowdfunding

Description

Co-sponsored by ECI SCORE and presented by Alan Singleton of Singleton Law Firm.

Crowdfunding is an evolving method of raising capital through the Internet, typically from a large number of people in relatively small amounts. Common crowdfunding sites include GoFundMe, Kickstarter, and Indiegogo. Crowdfunding has been used extensively in recent years to solicit donations or conduct a presale of a product – it can be a great way to validate customer interest in the product and raise modest amounts of capital. The rules have now been finalized to also allow companies to sell stock in a company through a crowdfunding site. This presentation will cover the different types of crowdfunding and how they might be used to raise capital for a business.

Here is additional (optional) information on equity based crowdfunding:

With respect to equity based crowdfunding, Title III of the JOBS Act created a federal exemption under the securities laws allowing crowdfunding to be used as a vehicle for offering and selling securities, without the registration requirements applicable to traditional IPOs. Nevertheless, and per the final rules adopted by Securities and Exchange Commission on October 30, 2015 (and which went into effect in May of 2016), companies seeking to sell securities through crowdfunding must make a host of financial decisions and navigate a maze of governmental regulations. The final rules impose certain investment limits, such as the amount of money an issuer can raise and an investor can invest, as well requiring certain disclosures by issuers regarding their business and securities offering. In addition, the final rules create a regulatory framework within which intermediaries (the broker-dealers and/or funding portals) facilitate these crowdfunding transactions.

This presentation examines the statutory changes in the federal securities laws brought about in the JOBS Act, the rules and regulations enacted by the Securities and Exchanges Commission effectuating these changes, and the SEC crowdfunding final rules. Topics covered include the following:

• “Crowdfunding” and how it has changed over the years;
• “Crowdfunding” as defined in the JOBS Act;
• The crowdfunding federal exemption under the securities laws;
• The restrictions placed on securities offered through crowdfunding;
• The monetary limits placed on crowdfunding offerings;
• How the recent changes affect capital raises;
• Whether the new crowdfunding laws and regulations will result in a boom or a bust;
• And more!


The cost to attend this seminar is $19 for Chamber members and $29 for non-members.

To register, please email Caryn Isenhower or call 217.359.1791. Registration deadline is November 16, 2016.