Ready Capital: A Look at Equity Crowdfunding via the JOBS Act

In the December 2016 & February 2017 issues of Los Angeles Lawyer Magazine, SBEC mentor and board member Mark Hiraide wrote about the potential impact of the addition of equity crowdfunding to the JOBS Act. He shares it here with SBEC entrepreneurs…

Ready Captital: Mark Hiraide on CrowdfundingWhile the JOBS Act makes it possible for nearly anyone to raise venture capital, it also raises the stakes for business attorneys as gatekeepers. Opening up unprecedented investment opportunities, the JOBS Act’s lack of registration also engenders potential risks…

The final stages of a major shift in federal securities laws took place in May 2016 when entrepreneurs and companies gained unprecedented access to capital. For the first time in the history of federal securities regulation in the United States, businesses may raise capital from the general public without registering a securities offering with the Securities and Exchange Commission and state securities regulators. This expansion of the funding universe is due to the Jumpstart Our Business Startups (JOBS) Act of 2012,1 designed to spur job creation by easing regulations governing “private” securities offerings to help early-stage companies grow. The JOBS Act removed previous restrictions on advertising securities offerings. Under the new law it is significantly easier for entrepreneurial clients to fund their ventures using other people’s money (OPM). However, lawyers must remain vigilant as regulators view lawyers as the gatekeepers who will fill in the regulatory void.


Download Part I
Download Part II
By |2017-05-25T17:47:35+00:00March 9th, 2017|0 Comments