December 05, 2016
Doug Ellenoff & Richard Baumann of EGS Explain Unique Structure of Fig Reg A+ Crowdfunding Offer
Utilization of the updated securities exemption colloquially called Reg A+ continues to gain traction. A form on crowdfunding that has been described as a Mini-IPO type offering due to the scaled disclosure, reduced cost and the option to immediately trade shares, Reg A+ is an emerging step in the capital ladder for smaller firms.
June 29, 2016
Understand the Crowdfunding Shift That Could Transform How Startups are Funded
To most people, crowdfunding means that someone invented a thermos that sings “Yankee Doodle,” and it just raised $750,000 on Kickstarter. But that’s about to change. In May, a regulation called Title III, a part of the Jumpstart Our Business Startups Act, clicked into effect, and it has the potential to alter the way many startups are funded -- and how people use the word crowdfunding.
June 02, 2016
Is This the Proposal That Could Save Crowdfunding?
Proposed fixes to Title III could ease the way for more equity crowdfunding. They run the gamut, from a company that makes customizable condoms, to another that sells moonshine-based liqueurs, to yet another that bills itself as a social network for gamers.
May 03, 2016
Perspective on Crowdfunding: This New Industry Will Flourish
Two years after Title II of the JOBS Act, known as 506(c), went into effect well over one billion dollars of financings have been closed through online funding portals under this provision and 506(b). The year over year growth has been substantial. Entrepreneurs and real estate professionals have benefited and so have investors.
December 22, 2015
Douglas Ellenoff, a member of the Firm, was interviewd by Crowdfund Insider on his thoughts on 2015 and his expectations for the coming year.
Click here to read the interview.
October 30, 2015
S.E.C. Gives Small Investors Access to Equity Crowdfunding
Entrepreneurs raising money through crowdfunding campaigns have typically rewarded their backers with early access to products and with tchotchkes like T-shirts and coffee mugs. But under new rules adopted Friday by the
n, they will be able to offer a prize that could be more lucrative: an equity stake in their business.
The New York Times, Oct. 30, 2015
October 29, 2015
With SEC poised to expand crowdfunding rules, it's time for advisers to get up to speed
Investment crowdfunding is coming to the retail-investor marketplace and financial advisers who are not up to speed could be missing an opportunity to provide valuable guidance to their clients. “I think it's a really big thing,” said Doug Ellenoff, a securities lawyer at Ellenoff Grossman and Schole. “I have every belief that in five years if we do this responsibly, we'll be looking back at this like we looked back at the start of online trading.”
Investment News; Oct. 29, 2015
October 28, 2015
SEC Crowdfunding Changes to Bring in New CRE Investors
For more than three years since the passage of the JOBS Act, the commercial real estate industry has been waiting for the U.S. Securities and Exchange Commission to approve final rules that would make it easier for more investors to participate in crowdfunding. They shouldn’t have to wait much longer.
Commercial Property Executive; Oct. 28, 2015
October 18, 2015
iDisclose addresses two biggest equity crowdfunding problems
Considering how many alt-fi companies have seized on an area ripe for disruption, it is not surprising someone has seen opportunity in providing a comprehensive yet inexpensive solution for companies wishing to raise capital. With the legal implications, it is comforting to know this solution was developed by two people well-versed in both crowdfunding and capital formation.
Bankless Times; October 18, 2015
September 23, 2015
Securities Disclosure Documents Cost Too Much? iDisclose Will Save You Thousands
“iDisclose is not a replacement for an attorney, stated Quinn. But it is an application that can save many hours, if not days, of legal work. As we know, with attorneys, time is money, this helps both entrepreneurs and law firms keep costs low.”
www.crowdfundinsider.com; Sept. 22, 2015
September 21, 2015
It was bittersweet walking into Commissioner Daniel Gallagher’s office for the first and last time. He has been a true champion for small business and access to capital and we all owe him a debt of gratitude. It was also wholly appropriate that the amazing infographic that he and his staff put together demarking all the regulations governin...
www.crowdfundinsider.com; Sept. 21, 2015
October 17, 2014
Crowdfunding with Doug Ellenoff
Join in online from 2-3:30 p.m. Thursday, Nov. 6 to learn from the 2014 recipient of the “Crowdfunding Visionary” award, Doug Ellenoff, attorney-at-law. Ellenoff is an international expert on crowdfunding. He and his firm, Ellenoff Grossman & Schole LLP, have been meaningfully involved in crowdfunding since inception, sponsoring events, working with the SE...
Casper Journal October 17, 2014
October 16, 2014
Two Years Later, JOBS Act Promises Fall Short, Though Not for Everyone
More than two years ago, President Obama signed the JOBS Act into law. Among its provisions were several significant changes to the way small private companies could find potential shareholders. In a nutshell, the act did two major things. First, it allowed private companies to openly solicit investors, on the Web and elsewhere.
Inc. October 16, 2014
September 11, 2014
Douglas S. Ellenoff, a member of the Firm, will receive the "Crowdfunding Visionary Award" at the 3rd Annual Global Crowdfunding Convention and Bootcamp this October in Las Vegas.
Click here for more details
September 09, 2014
Doug Ellenoff to Receive “Crowdfunding Visionary Award” at Annual Convention
Attorney and crowdfunding trailblazer Doug Ellenoff, from law firm Ellenoff Grossman & Schole, will be receiving the 2014 Crowdfunding Visionary Award to be presented at the 3rd Annual Global Crowdfunding Convention and Bootcamp taking place in Las Vegas this October.
Crowdfund Insider September 9, 2014
August 19, 2014
Venture firm tries telling others how to invest in private companies
A Washington, D.C.-area company that invests in startup companies is moving into a new line of business: advising others on how they too can invest in startups.Disruption Corp., which runs the Crystal Tech Fund in Crystal City, Virginia, said Tuesday that regulators had licensed it to provide investment guidance.
Reuters August 19, 2014
April 28, 2014
Equity crowdfunding platform OurCrowd rakes in $25M Series B round
Israel’s OurCrowd has just pulled in $25 million in Series B funding, on top of the $5.5 million Series A it took in February 2013. According to the company, this is the biggest round yet for an equity crowdfunding outfit anywhere — only a million more than AngelList’s $24 million haul last September, but the point stands.
Gigaom April 28, 2014
March 27, 2014
Realty Mogul Raises $9M as Real Estate Crowdsourcing Turns Into Hot Property
Crowdfunding, which has influenced the making of movies, consumer electronics and various types of loans, is now spreading to real estate. Realty Mogul Chief Executive Jilliene Helman Realty Mogul
In the second such funding of a real estate startup this week, Realty Mogul Co. raised $9 million in Series A funding led by Canaan Partners, bringing its total funding to $10 million. Valuation is not disclosed.
Crowdfund Beat March 27, 2014
March 26, 2014
Tough love as crowdfunding grows up
The main benefactor of this rule change has been the real estate industry. Douglas Ellenoff, a securities lawyer who specializes in crowdfunding, estimates that more than half of the $160 million raised by online crowdfunding platforms in the U.S. since September went into real estate projects. The amount raised offline, for example by developers raising money from neighbors, could be significantly higher.
Real Estate Weekly March 26, 2014
March 11, 2014
Bills Authorizing Intrastate “Crowdfinancing” Filed in Florida House and Senate
The Florida Crowd Finance Association held its inaugural meeting March 5 at the law firm of Becker & Poliakoff in Coral Gables in support of a bipartisan initiative filed in the Florida House and Senate authorizing certain forms of “Crowdfinancing” between Florida-based entities.
PR Web March 11, 2014
January 22, 2014
The top 30 influential leaders in the crowdfunding industry (infographic)
Israeli equity crowdfunding platform OurCrowd worked with marketing firm Evolve Inc. to handpick a list of 800 influential members of the crowdfunding community.
The multibillion dollar crowdfunding industry wouldn't be where it is today without the people on this list.
They are entrepreneurs, investors, regulators, politicians, analysts, legal professionals, and journalists. Together, their actions and commentary have driven the nascent industry forward.
Venture Beat January 22, 2014
January 22, 2014
The New Era of Investor Relations
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it's critical that the new rules are followed to a T, eliminating the chance for exemption rescission. Panel speakers include veteran securities attorney Doug Ellenoff...
SXSW January 22, 2014
January 04, 2014
FOR IMMEDIATE RELEASE
Worldwide Stock Transfer Offers Investor Accreditation Services to Private Companies
New product offers first-of-its-kind stock transfer option for private companies
HACKENSACK, N.J. (Jan. 7, 2014) – Worldwide Stock Transfer, LLC (WST), a nation’s leading
stock transfer agent, announced today the launch of a first of its kind platform that facilitates
the investor accreditation process by connecting private companies and investors with their
verifiers without requiring private documents.
Worldwide Stock Transfer provides private companies who are utilizing crowd funding as a
method to raise capital, the ability to secure investor accreditation. An individual investor must
document an annual income of more than $200,000 individually, $300,000 as a couple or have a
net worth of more than $1,000,000 excluding the value of a primary household.
"Worldwide Stock has developed the stock transfer industry’s first one stop shopping
platform,” said Jonathan Gellis, president of Worldwide Stock Transfer. “We have put together
a platform that handles all the major back office components for private companies. A private
company can utilize Worldwide for shareholder services, receive escrow and investor
accreditation services all under one roof at a cost competitive rate."
Worldwide’s automated verification software streamlines the accreditation process while also
ensuring that customers comply with the safe harbor provision outlined by Title II of the JOBS
About Worldwide Stock Transfer, LLC
Worldwide Stock Transfer, LLC is a premier stock transfer firm specializing in an array of transfer
services including DRS and DWAC, accurate record keeping and account maintenance, investor
relations and restricted stock. WST offers escrow lockbox capabilities and unlimited online
services to clients and shareholders. Founded in 2005 at the request of numerous micro-cap
and small to mid-level size companies searching for a higher level of service and individual
attention, WST strongly believes in personalized, low cost professional service when it comes to
the stock transfer industry. WST has assembled a highly experienced team consisting of
professionals with extensive years of financial service skills in a variety of areas. For more
information on WST, please visit www.wwstr.com.
Click here for more information.
December 06, 2013
The Business Law Section and the International Section of the New York State Bar Association (NYSBA) is hosting a live program and webcast in New York City on December 11, 2013, to review crowdfunding. The event is titled, “The SEC’s Crowdfunding Proposal – A Preliminary Look”, and it is open to anyone who registers on the NYSBA site. The webcast is free of charge.
July 25, 2013
JOBS Act Title II Rulemaking Update
The final rules adopted by the SEC on July 10th to eliminate the ban on general solicitation and advertising and define bad actor disqualifications for Rule 506 offerings have been published in the Federal Register. These rules go into effect on September 23, 2013.
We will be working with our clients and friends to develop compliance protocols for these new rules.