Monthly Archives: December 2012

It’s Not Funny When It Happens To You

With all the excitement surrounding crowd funding, it’s easy to forget that the failure to provide full and fair disclosure to potential investors, even if they are “friends and family,” could result in a nasty legal battle. Witness former SNL … Continue reading

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The Good, The Bad and The Ugly

If nothing else, the SEC will have to be prepared for the good, the bad and the ugly that will come with crowd funding. Since federal securities laws are disclosure oriented and not “merit regulation,” there are going to be … Continue reading

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It’s Not (Always) About The Money

Film makers need to think about what motivates people to “invest” in their projects. Currently, where the only return is a “reward,” many are merely pre-buying the finished product. But there are other motivations that are relevant, and will be … Continue reading

Posted in Charity, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, Funding Portals, Investments, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

SEC Scorecard

Countdown to 2013: SEC Crowd Funding Scorecard: 161 comment letters and 31 meetings to date. Regulations required to be published by January 2, 2013 per Sec. 302(c) of the JOBS Act. Any bets on whether we will see regs by … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Jobs, Legislative Intent, SEC, Small Business | Tagged , , , , , , , , , , , , , , , , , , , | Leave a comment

Singing in the Rain

Every silver lining has a cloud and so will crowd funding. We are already seeing strike suit lawyer advertisements on the internet and coming soon to TV: “Have you suffered losses in a fraudulent or misleading sale of unregistered securities? … Continue reading

Posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Funding Portals, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , | Leave a comment

Immortality Beats Equity

If you can’t get equity yet, at least you can get cinematic immortality. Bill Johnson, the producer of such Hollywood films as “I Love You Man,” has a new crowd funding perq that puts your photo on screen at the … Continue reading

Posted in Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Film, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

No SIPC If the Funding Portal Crashes

The Securities Investor Protection Corporation works to return customers’ cash, stock and other customer property when a brokerage is closed due to bankruptcy or other financial difficulties and customer assets are missing. However, since SIPC members are registered brokers or … Continue reading

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The “Goldman Effect”

When the Crowd Fund Act becomes effective, expect the firms that have positioned themselves as the quality market leaders to attract the bigger deals with the better issuers. Call it the “Goldman Effect.” It is reported  that Angel List and … Continue reading

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FINRA Is The Crowd Funding SRO

After months of trying to elicit a response from FINRA as to whether it will agree to be the self regulatory organization for funding portals under the JOBS Act, FINRA has quietly said “yes” by issuing new guidance.  On December … Continue reading

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FINRA Exempts Filing Requirement for Crowd Funding Deal

On Dec. 3 the SEC approved new FINRA Rule 5123 to require each FINRA member firm that sells an issuer’s securities in a private placement, subject to certain exemptions, to file with FINRA a copy of any private placement memorandum, … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding Platforms, FINRA, Funding Portals, Legislative Intent, SEC, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , | Leave a comment