Governor Rauner Signs Illinois Crowdfunding Bill

Bill Passed

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.

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SEC Launces Probe of Pre-IPO Tech Stock Sales Transactions

WSEC Investigationhat 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.

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SEC Issues Cease and Desist Order To “EB-5” Investment Companies For Acting As Unregistered Broker-Dealers – Why It Matters To The Crowdfunding Industry

Last week the U.S. Securities and Exchange Commission (SEC) issued  a Cease and Desist Order (the “Order”) against two related companies for acting as unregistered broker-dealers in connection with the sale of securities under the “EB-5” Investor Program (also sometimes referred to as the “EB-5 Visa Program”). The Order is monumental in itself as it represents the first time the SEC has charged any company with acting as an “unregistered broker-dealer” under the EB-5 Visa Program. More importantly for us in the crowdfunding industry however, is the potentially far reaching implications of the SEC’s support for its ruling in this case.

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SEC Advisory Committee Recommends Modernizing Rule 147 To Support Intrastate Crowdfunding

Update 147 2The Securities and Exchange Commission’s (SEC) Advisory Committee on Small and Emerging Companies met in early June to discuss various topics concerning, of course, small businesses. One of the primary topics the Committee addressed was the growing enactment and use of state-based Crowdfunding (i.e. “Intrastate crowdfunding”) and how the SEC can, and should, support those efforts by modernizing Rule 147.

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The “Mini-IPO” Is Here!!! New Regulation A+ Rules Become Effective Today

aplus-secToday the much-anticipated final rules for Title IV of the JOBS Act (commonly referred to as Regulation A+) become effective. With them comes a new way for small and mid-sized companies to more easily raise capital from the public, and a new way for the public to invest, through “Mini-IPOs.”

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