Check out http://www.whatcrowdfunding.com for more.
"Crowdfunding, crowd financing, equity crowdfunding, or crowd sourced capital..describes a collective effort by people who..pool their money and resources together via the Internet, to support efforts initiated by other people or organizations."
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The law targets emerging growth companies and defines them as an issuer with “total annual gross revenues of less than $1,000,000,000 (one billion dollars)..during its most recently completed fiscal year.” These firms are now exempt from certain reporting requirements. Firms that issued stock on or before a certain date are still covered by the 34 Act, however.
Emerging growth companies do not need to file certain information or comply with certain financial accounting standards.
Broker/Dealers are exempt from certain restrictions concerning research. The “Quiet Period” for these issuers has changed.
The SEC is limited in several important aspects.
By providing a platform for the sale of emerging company securities, one does not need to register as a Broker/Dealer, provided you meet the qualifications to receive an exemption.
1. $1,000,000 in funding in a 12 month period.
2. Any individual investors are limited in the amount of securities they can purchase depending on investor net worth
Issuers (Emerging Growth Companies) have 5 requirements, and are liable for any untrue statements of material facts.
There are four trading restrictions and three exemptions.
In addition, the SEC must make a special effort to reach out to women, veteran and minority firms.
We will discuss the new law and the Crowdfunding market in detail. We will describe new financing options and tools.