SEC’s Title III Equity Crowdfunding Rules for Non-Accredited Investors Go into Effect May 16, 2016

The new SEC rules and proposed amendments are designed to assist smaller companies with capital formation and provide investors with the necessary protections

Chairman Mary Jo White Keeps Her Promise to Crowdfunding Industry

By Robert Hoskins

Washington D.C. — The Securities and Exchange Commission adopted the final Title III rules to permit companies to offer and sell securities through crowdfunding.  The Commission also voted to propose amendments to existing Securities Act rules to facilitate intrastate and regional securities offerings.  The new rules and proposed amendments are designed to assist smaller companies with capital formation and provide investors with additional protections.

Crowdfunding is an evolving method of raising capital that has been used to raise funds through the Internet for a variety of projects.  Title III of the JOBS Act created a federal exemption under the securities laws so that this type of funding method can be used to offer and sell securities.

“There is a great deal of enthusiasm in the marketplace for crowdfunding, and I believe these rules and proposed amendments provide smaller companies with innovative ways to raise capital and give investors the protections they need,” said SEC Chair Mary Jo White. “With these rules, the Commission has completed all of the major rulemaking mandated under the JOBS Act.”

The final rules, Regulation Crowdfunding, permit individuals to invest in securities-based crowdfunding transactions subject to certain investment limits.  The rules also limit the amount of money an issuer can raise using the crowdfunding exemption, impose disclosure requirements on issuers for certain information about their business and securities offering, and create a regulatory framework for the broker-dealers and funding portals that facilitate the crowdfunding transactions.

The new crowdfunding rules and forms will be effective 180 days after they are published in the Federal Register. The forms enabling funding portals to register with the Commission will be effective Jan. 29, 2016. Final rules become effective May 16, 2016.

The Commission also proposed amendments to existing Securities Act Rule 147 to modernize the rule for intrastate offerings to further facilitate capital formation, including through intrastate crowdfunding provisions.  The proposal also would amend Securities Act Rule 504 to increase the aggregate amount of money that may be offered and sold pursuant to the rule from $1 million to $5 million and apply bad actor disqualifications to Rule 504 offerings to provide additional investor protection.

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NowStreet Brings Wall Street Closer to Crowdfunding and P2P-Lending through Free May Crowdfunding Webinars

Free Crowdfunding webinars to ensure that broker-dealers, investment bankers, financial advisors, issuers and investors of all sizes capitalize on imminent Wall Street transformation.

By Robert Hoskins

NowStreet Media announced its “Capitalizing on Financial Innovation” webinar series, aimed at helping broker-dealers, investment bankers, financial advisors, issuers and investors of all sizes succeed in a financial industry that is in the midst of extraordinary change.

NowStreet Crowdfunding Webinars

“As the popularity for neoteric crowd-financing methods such as P2P lending and crowdfunding continues to mount, we are witnessing the rapid disintermediation of Wall Street. As a result, traditional banking and brokerage revenue models are becoming obsolete, conventional capital raising techniques are no longer viable, and investor demand for alternative assets is escalating. The objective of our webinar channel is to ensure that both the financial community as well as the investing public are properly prepared to capitalize on the imminent market transformation,” stated Dara Albright, NowStreet’s CEO.

NowStreet’s ground-breaking webinar channel features trendsetting discussions and indispensable insight from the very individuals who are shaping tomorrow’s capital markets. As part of an educational outreach program, the webinars are free to all participants.

May 16, 2013, 1pm EST

“Pre-JOBS Act Crowdfunding – The Intrastate Exemption”
Learn how intrastate crowdfunding is on the verge of setting the national crowdfunding precedent, uniting communities and inspiring local economic growth. Presented by Douglas S. Ellenoff, Partner at Ellenoff, Grossman & Schole; *Richard J. Salute, CPA, Consultant with extensive expertise in capital markets and securities regulations; Jeff Bekiares and Megan Johnson, Co-Founders of SparkMarket, the nation’s first bonafide crowdfunding portal allowing unaccredited investors to legally crowdfund via intrastate exemption.

May 30, 2013, 1pm EST

“An Inside Look at the Explosive Growth of P2P & Online Lending”
Recognized P2P thought leader, Peter Renton, Founder of Lend Academy & author of The Lending Club Story, will discuss the rapid growth of P2P & Online Lending as well as the economic implications of Google’s recent investments into Lending Club & On Deck Capital. He will also show participants how to maximize P2P returns and capitalize on the proliferation of the industry.

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Crowdfunding Expo Opens First Event Trade Show Floor for Crowdfunding Exhibitors

By Robert Hoskins

The 2nd Annual Global Crowdfunding Convention and Bootcamp invites leading-edge Crowdfunding technology companies, Crowdfunding platforms and Crowdfunding campaign managers (Crowdfunders) to participate in the first ever Crowdfunding Expo Showcase to be held on October 14-16, 2013 at the  M Resort and SPA in Las Vegas, Nevada.

The trade show offers entrepreneurs the perfect opportunity to purchase an exhibit booth and begin to pitching their Crowdfunding business models to everyone in attendance as well as a virtual trade show booth for those that cannot attend in person.

2nd Annual Global Crowdfunding Exhibit Convention and Bootcamp

“The show will stream exhibitor’s campaign videos as a part of a continuous news loop to the entire convention over the course of three days as well as the show’s website that will be a focal point for hundreds of thousands of Crowdfunders that cannot attend the show in person,” commented Ruth Hedges, Funding Roadmap’s CEO.  “As the producer of the largest Crowdfunding event in the world in 2012, we continue to ramp up our marketing and business development activities attract the best and brightest decision makers and influencers from other successful industries to become investors, donors, fans, and followers of the Crowdfunding industry, which is poised to reinvent the entire American financial system.”

This is a must-attend event for all entrepreneurs, small business owners, investors, Crowdfunding professionals and advocates, enthusiasts, funding portals, investment bankers, financial advisers, venture capitalists, angel investors, incubators, business coaches, mentors, secondary stock specialists, equity financial analysts, and journalists.

Attendees will be immersed in one of the most advanced Crowdfunding education systems on the planet that will include personalized hands-on access to Crowdfunding subject matter experts including  legal, regulatory, financial, tax and technology experts.

The 3-day event will also feature a one of a kind Crowdfunding portal pavilion as well as the industry’s first “Crowdfunding Expo Showcase” and “Crowdfunding Expo Marketplace” – where the industry’s experts will come together to exhibit some of the most advanced technology platforms, ancillary Crowdfunding Service Providers (CSPs) and some of the most innovative new Crowdfunding financial solutions in existence.

This event is the Crowdfunding industry’s premier event and space is limited.  If you can only attend one Crowdfunding event this year do not pass this one up.  Click here to register.

Las Vegas to host 2nd Annual Global Crowdfunding Convention and Bootcamp

By Robert Hoskins

Crowdfundingroadmap and NowStreet Media have teamed up to host the 2nd Annual Global Crowdfunding Convention and Bootcamp that will be held on October 14-16 at the M Resort and SPA in Las Vegas, NV.  Sign up before February 2, 2013 and receive a $200 early bird discount.

Because conventional forms of financing, such as venture capital and small business loans, are no longer viable options for earlier stage companies, many have been desperately seeking alternative capital raising methods, such as Crowdfunding. Crowdfunding has already matured into nearly a $3 billion  industry, and with the implementation of the Jobs Act, it is forecasted to grow exponentially as more and more entrepreneurs, investors and members of the financial community propagate the marketplace. Comprised of the largest gathering of industry professionals, this year’s convention is designed to provide participants with an unparalleled informational and networking experience.

This is the must-attend event for entrepreneurs and small business owners, investors, crowdfunding professionals and enthusiasts, funding portals, investment bankers, financial advisers, venture capitalist, angel investors, incubators, business coaches, mentors, secondary stock specialists, equity analysts, journalists as well as tax, legal and regulatory experts. Attendees can expect to be immersed in the best in education that will include personalized hands-on access to renowned industry leaders.

Highlights of this year’s conference will feature a very special keynote by the legendary entrepreneurial mentor/advisor, Jay Abraham – founder and CEO of The Abraham Group, Inc. Jay has been acknowledged as a unique and distinctive authority in the field of business performance enhancement – and the maximizing and multiplying of revenue and business assets.

The 3-day event will also feature a one of a kind “Funding Portal Pavilion”™ as well as a new “Crowdfunding Expo Showcase” and “Crowdfunding Expo Marketplace” – where the best in the industry come together to exhibit game-changing platforms, products and new funding solutions. Also being introduced is a diverse series of workshops for Entrepreneurs, Investors, Financial Advisers, Funding Portals, Broker Dealers, The International Community as well as Legal and Tax Professionals. All workshops will be spearheaded by an impressive list of prominent speakers from around the world.