As the author, and biggest proponent, of the recently signed Illinois Intrastate Crowdfunding bill (HB 3429) I have been doing my best to get the word out about it and the potential it holds for Illinois business and investors. As part of that effort, I recently did a presentation at 1871 herein Chicago entitled “The Illinois Crowdfunding Exemption and How To Use It To Raise Capital.” I thought it would be beneficial to post that presentation here for those that were unable to attend and might be interested.
August 26, 2015
Tagged 1871, attorney, crowdfunding, Debt Crowdfunding, Equity Crowdfunding, Illinois crowdfunding, Illinois crowdfunding exemption, Illinois residents, Investment, Real Estate, Recfund, RECfunds, SEC
Last week the Securities and Exchange Commission (SEC) responded to a “no-action” letter (RE: Citizen VC, Inc.) concerning the establishment of “substantive relationships” with previously unknown potential investors and what constitutes “general solicitation” in the context of a private securities offering. The SEC also issued several new Compliance and Disclosure Interpretations (C&DIs) last week centered around the same topic. While the majority of this guidance is more applicable to traditional 506(b) offerings (i.e. non-crowdfunded offerings), the new guidance is still applicable to many current offerings (particularly those done by private investment/VC/PE funds).
Posted in Gen Crowdfunding
Tagged C&DI, crowdfunding, Debt Crowdfunding, Equity Crowdfunding, general solicitation, JOBS Act, legal, No Action, private placements, Regulation D, Rule 506, SEC, Title II
The awareness and popularity of real estate based equity crowdfunding (i.e. “RECfunds”) continues to grow exponentially. As do the number of real estate crowdfunding portals. RECFunds offer substantial benefits to today’s investors including access to multiple types of projects, smaller barriers to investment, and portfolio diversification. RECfunds carry some significant risks as well however. One of the lesser known risks to some investors is the risk that the project is not being “underwritten” properly.
July 29, 2015 marks a landmark day for Illinois entrepreneurs and investors as Governor Bruce Rauner signed and approved the Illinois Intrastate Crowdfunding Bill (HB 3429). The bill was passed unanimously by the Illinois House of Representatives and Senate back in late May but with the Governor’s signature it has officially become law.
What started as an action against a single company in late June has evolved into a probe of an entire industry. As reported by the Wall Street Journal late last week, the Securities and Exchange Commission (SEC) has launched a new probe spurred by the recent meteoric uptick in the number and amount of sales of pre-IPO tech-startup shares and related derivative instruments. The SEC is particularly concerned with the fact that many of these transactions are currently being conducted through “private” transactions in violation of applicable securities laws.