Crowdfunding has been the buzzword in the start-up world for years. But for most entrepreneurs, crowdfunding was almost as mythological as the unicorn or sasquatch. While it was possible to fund a business or artistic venture through donations by attracting numerous potential investors, there was no real way to reach out to a wide audience. Then came Kickstarter, GoFundeMe, IndieGoGo and a slew of other crowdfunding websites.
Kickstarter alone has raised over $2 billion for over 250,00 creative business projects since its inception.
While crowdfunding has exploded with the growth of Kickstarter and GoFundMe, new rules that seek to protect small investors from unscrupulous operators may dampen crowdfunding by limiting fundraising & advertising while adding new disclosure burdens. In this CLE program, Crowdcheck CEO Sara Hanks explores the recent revisions to the crowdfunding laws and discusses the potential impacts on both companies and investors. Sara also provides numerous practical points for attorneys when counseling their clients on the positives and negatives of crowdfunding. To access this course please click here: Securities Crowdfunding in the Age of Kickstarter.
Among the key issues addressed:
- Kickstarter & online funding portals
- Title III of the JOBS Act
- What’s changed
- Investor limits
- Safe harbors
- 4(a)(6) intermediary requirements
- Prohibitions on funding portals
- Filing requirements & information
- Financial disclosures
- Publicity & advertising
- Bad actor checks
- Liability under 4(a)(6)
- Resale restrictions on securities
Sara Hanks is the co-founder and CEO of CrowdCheck. With over 30 years of experience in the corporate and securities field, Sara brings a wealth of legal expertise in securities law and start-ups to the emerging marketplace for crowdfunding and online capital formation. Her position prior to founding CrowdCheck was General Counsel of the bipartisan Congressional Oversight Panel, the overseer of the Troubled Asset Relief Program (TARP), chaired by now-Senator Elizabeth Warren. CrowdCheck provides due diligence, disclosure and compliance services for online capital formation, helping investors get the information they need to avoid fraud and make informed investment decisions, and helping entrepreneurs and intermediaries avoid liability.
This CLE course is offered in the following states:
- Alaska (AK)
- Arizona (AZ)
- California (CA)
- Connecticut (CT)
- District of Columbia (DC)
- Illinois (IL)
- Maryland (MD)
- Massachusetts (MA)
- Michigan (MI)
- Missouri (MO)
- New Hampshire (NH)
- New Jersey (NJ)
- New York (NY)
- North Dakota (ND)
- Pennsylvania (PA)
- South Dakota (SD)
Attorney Credits offers CLE for attorneys in New York and around the country. For more information about CLE in New York please click the following link: NY CLE.