News & Events - Crowdfunding

  • 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.

  • July 12, 2013

    The FINRA Board of Governors met today and authorized the publication of a Regulatory Notice to solicit comment on proposed rules and related forms governing funding portals pursuant to Title III of the JOBS Act. The proposed rules address among other things the membership application process for funding portals, fraud and manipulation, just and equitable principles of trade, communications with the public, supervision and anti-money laundering. FINRA expects to publish the Notice when the SEC releases its proposed rules pursuant to Title III of the JOBS Act for comment.

  • May 10, 2013

    Douglas S. Ellenoff, a member of the Firm, wrote an article on Crowdfunding that was published in the Vanderbilt Law Review.

  • January 11, 2013

    Sherwood Neiss and Jason Best of Crowdfund Capital Advisors co-authored this crowdfund investing primer to provide guidance to investors interested in this emerging financial marketplace.

  • January 10, 2013

    In response to encouragement from the crowdfunding industry, FINRA has taken the proactive step of creating an Interim Form for Funding Portals to commence the application process ahead of final SEC and FINRA rulemaking. The application will give both FINRA and applicants the ability to develop rules that reflect the funding portal community and its business. FINRA will treat the filed information as confidential. Once the rules are implemented, applicants will have the opportunity to provide additional or different information. This voluntary interim application will not confer FINRA membership and is not a license to conduct business under the JOBS Act.

  • January 08, 2013

    Douglas S. Ellenoff participated in "Crowdfund Texas: Impact of the JOBS Act on Texas Investors and Start-ups" in Austin, Texas on January 8, 2013. It was a premiere industry conference that brought together Texas investors, start-ups, incubators, accelerators, and academic leaders in entrepreneurship for an intensive day of interactive educational sessions from leading thought leaders. Mr. Ellenoff was invited to speak on several panels as well as one exclusively for the media.

  • December 11, 2012

    Today I kick off a special series of conversations with one of our contributing experts on the JOBS Act and the future of crowdfunding for equity in the US and elsewhere.  Douglas Ellenoff, a partner at the firm Ellenoff, Grossman and Schole will help me...

  • December 11, 2012

    What is the five-letter word sure to strike fear into the hearts of investors everywhere? Fraud.  But what I can't understand is why this particular f-word keeps being associated with equity crowdfunding. Sure, the involvement of large crowds statistically does increase the probability of a fraud in any industry. The...

  • December 10, 2012

    RocketHub’s Crowdfunding Whitepaper may prove a little tedious for the typical entrepreneur, but if you’re looking for a deep understanding of crowdfunding’s status in the US it is required reading. COO Jed Cohen and CFO Alon Hillel-Tuch were armed with their enthusiasm and this document at the recent SEC Forum on Small Business Capital Formation.

  • December 05, 2012

    Indiegogo, the crowdfunding platform used to raise millions of dollars for thousands of campaigns around the world, announced several international expansions on Wednesday. The expansions, which include new currencies, languages and localized homepages, aim to provide more customized and efficient experiences for international users.

  • November 27, 2012

    You'd think a vacancy at the top at the Securities and Exchange Commission would cause further delays in new regulations implementing crowdfunding and other provisions of the JOBS Act.  But that may not be the case, according to Karen Kerrigan, who heads the Small Business & Entrepreneurship Council and helped lead the push on Capitol Hill for the JOBS Act.

  • November 27, 2012

    Despite news that the chair of the SEC will step down next month, CFIRA members remain optimistic that the SEC will formulate rules to govern equity crowdfunding under the JOBS Act by the end of 2013. Board members of the Crowdfund Intermediary Regulatory Advocates (CFIRA) made the comments during a webinar sponsored today on BrightTalk entitled “What You Need to Know Regarding Jobs Act Implementation.”

  • November 14, 2012

    When my co-founder and I launched CircleUp, an equity-based crowdfunding site, earlier this year, we knew we needed to accomplish two critical tasks (well, a lot more than two, but these two stood out): 1) nail our business model and 2) raise capital., The best way to ensure a good business fails is to undercapitalize it. While we had the option to try to raise debt or equity capital, we knew debt capital was incredibly...

  • November 06, 2012

    In the spring of 2012, President Obama passed an act that will drastically alter the landscape of crowdfunding platforms. Until April 5, 2012, a small pool of existing crowdfunding sites were only permitted to operate on a reward or donation basis, essentially offering a product, discount, or enticement in exchange for monetary funding. With the launch of the JOBS Act, short for Jumpstart Our Business Startups, the ability for the general public to receive company equity in exchange for funding is now a possibility.

  • October 25, 2012

    To probe the legal intricacies revolving around the JOBS Act and how these new laws impact the crowdfunding scene in the next months leading to and right after its much-anticipated full implementation, spoke with Douglas Ellenoff of Ellenoff, Grossman & Scholle LLP. Ellenoff has represented public companies in connection with their initial public offerings, secondary public offerings, regulatory compliance as well as general corporate governance matters. During his career, he has represented numerous broker-dealers, venture capital investor groups and many corporations involved in the capital formation process.

  • October 15, 2012

    The world of entrepreneurial finance is changing rapidly; we are at a tipping point that will make what seems like a vibrant part of our global economy today seem small in one year’s hindsight.  Whether you are a service provider, social entrepreneur, angel investor, venture capitalist, or one of the millions of people ready to become a small-scale start up financier, it is time to pay attention.

  • October 01, 2012

    IPO Village, the first of its kind crowdfunding platform to host initial public offerings, announced today that they have received over $1 million in pledges for their first crowdfunded IPO set to go live in the coming weeks. IPO Village is an organization that uses crowdfunding to bring exclusive pre-IPOs to the everyday retail investor, allowing "Main Street" investors to access stock that was once only reserved for the Wall Street elite.

  • September 25, 2012

    Start-up game developers have a new place to look for funding.  Gambitious, an Amsterdam-based crowdfunding platform exclusive to the gaming industry, opened for business Tuesday, allowing users in Europe and the U.S. to launch (and donate to) projects with funding goals of up to 2.5 million euros.

  • September 25, 2012

    I was still arranging my papers as my cab pulled up to the Rayburn office building on Independence Avenue. Turns out, when you are asked to testify before Congress, you are responsible for bringing copies of your statement for each Member.

  • September 21, 2012

    Kickstarter, the darling of the crowdfunding movement, is tightening up its requirements for the creators who ask for funding on the site, after a rash of criticism that funded projects are running behind schedule.

  • September 21, 2012

    The global edition of our Internet Statistics Compendium saw further expansion this month as the e-commerce chapter grew to accommodate fresh data looking at the rise of crowdfunding.  Crowdfunding platforms (CFPs) such as KickStarter, Indiegogo and Sponsume are providing another option for musicians, social enterprises, writers, artists and start-ups to raise capital for their projects.

  • September 21, 2012

    Since the passing of the JOBS Act, we’ve seen an increase in the usage of crowdfunding platforms such as Kickstarter, Indiegogo, and Fundable. These crowdfunding platforms have helped fund everything from startups, film and music projects, non-profits, and all types of small businesses in between. While the jury is still out on the long-term viability of these endeavors, crowdfunding is a major catalyst in shifting the way small businesses operate and source capital.

  • September 04, 2012

    In response to FINRA’s proposed guidelines, Ellenoff Grossman & Schole LLP has submitted the attached comment letter.

  • August 20, 2012

    On Friday, August 17, 2012, the Securities and Exchange Commission announced further delays in adopting the new regulations to Rule 506 of Regulation D mandated by the Jumpstart Our Business Startups Act of 2012. Section 201(a) of the Act requires the SEC to adopt new regulations that would eliminate the current prohibition against general solicitation and general advertising of private securities offerings conducted pursuant to Rule 506 of Regulation D under the Securities Act of 1933.

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  • August 03, 2012

    Equity-based crowdfunding platform EarlyShares has raised $1.15 million in its first round of funding, so other businesses can raise funding too.  Ever since the JOBS Act passed in April, crowdfunding has been the cool kid on the block. Startups that provide opportunities for people to make micro-investments in small businesses are bum-rushing the field and each has a distinct angle.