Bennet, Merkley Press SEC to Finalize Crowdfunding Rules

Washington, DC – U.S. Senators Michael Bennet (D-CO) and Jeff Merkley (D-OR) called on the Securities and Exchange Commission (SEC) to finalize its crowdfunding rules that will allow small businesses and start-ups to raise capital online and through social media.

Bennet and Merkley were lead sponsors along with former Republican Massachusetts Senator Scott Brown on the bipartisan CROWDFUND Act, which was passed on April 5, 2012 as part of the JOBS Act, which allows small businesses to raise start-up capital on the internet.

In a letter to SEC Chair Mary Jo White, the senators wrote, “The law directed the SEC to promulgate the necessary rules within 270 days of the enactment of the Act. The proposed rules, however, were not published for public comment until over 500 days later, on October 13, 2013. The comment period for the proposed rules closed on February 14, 2014. Despite the fact that finalizing the rules has been a stated Commission priority for all of 2014, the rules governing this crucial new source of financing have still not been finalized.”

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7 Tips for Businesses to Prepare for Title III

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BY Judd Hollas, Founder & Chief Inventor, EquityNet The  industry is gaining serious momentum, and with the implementation of Title III of the JOBS Act coming up next year, entrepreneurs will soon have many more options when it comes to fundraising. Title III will allow many Americans who are not considered high-net-worth individuals to invest in private small businesses and startups to own a percentage of those companies. This is going to give entrepreneurs a much larger selection of potential investors than ever before. It’s anticipated that Title III won’t come into effect until sometime next spring, but proactive entrepreneurs can take action now to be prepared to leverage this new law when it gets passed. 1. Assess your need to utilize Title III Fundraising needs vary depending on a company’s industry and Title III will put certain rules in place that some entrepreneurs may find cumbersome. Under the Title III exemption, funds raised from all types of investors will not be able to exceed $1 million in a 12-month period. This might be suitable for entrepreneurs looking for capital in the six-figure range, but those seeking larger investments will need to be willing to launch multiple fundraising campaigns. […]

7 Tips for Businesses to Prepare for Title IIICrowdFund Beat.

 

RetireAmerica.com Announces Launch

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2013 /PRNewswire/ — RetireAmerica.com announced today the launch of its web-based capital protected equity crowdfunding portal. The launch is in beta form and is intended to become fully functional by year-end. Empowering Entrepreneurs, Protecting Investors, Creating Jobs. RetireAmerica.com (www.retireamerica.com) announced today the launch of its crowdfunding portal which will offer investors the opportunity to make equity investments in early stage companies through its unique financing structure that combines capital protection with an equity investment. Initially, investments on the platform will be limited to accredited investors, but will be expanded to non-accredited eligible investors following full implementation of Title III of the JOBS Act.

Steve Colmar, RetireAmerica.com’s CEO stated, “Everyone knows that early stage investing is risky. Our mission has been to develop a product that opens up investment opportunities in early stage companies to investors who want to minimize their risk of loss. And now the crowdfunding revolution has arrived, making equity investments in early-stage companies available to countless new investors through groundbreaking social media outlets or portals. But despite its transformational influence on capital markets, crowdfunding hasn’t solved how to reduce the risk of loss of capital in early stage investments. The RetireAmerica.com product addresses this problem through our unique capital protected structure. Our protection feature allows the investor to protect some or all of his or her investment, and, in some cases, to redeploy non-risk capital at the investor’s discretion by converting it into additional equity.”

“We believe our capital protected product, with its unique conversion feature, is advantageous for both parties to the investment equation. For the entrepreneur, it provides a ready pool of capital to further their growth plans. And for the investor, it provides an opportunity to protect capital and to make additional incremental investments if and when it suits their individual risk profile.”

For More information, go to http://www.retireamerica.com

About RetireAmerica.com
RetireAmerica.com is an Austin Texas based company. Developed by Business Ventures Corp. of Austin, TX and Santa Barbara, CA. Accredited investors interested in RetireAmerica.com’s capital protected investments are invited to visit http://www.retireamerica.com and register as users of the site. Registration is free, giving investors access to our investment opportunities and important updates regarding RetireAmerica.com. Entrepreneurs with companies looking for capital are encouraged to submit their company for consideration.

SOURCE RetireAmerica.com

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SEC’s Sunshine Act Meeting

Seal of the U.S. Securities and Exchange Commi...
Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting.

Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold an Open Meeting on Wednesday, October 23, 2013 at 10:00 a.m., in the Auditorium, Room L-002.

The subject matter of the Open Meeting will be:

  • The Commission will consider whether to propose rules and forms related to the offer and sale of securities through crowdfunding pursuant to Section 4(a)(6) of the Securities Act of 1933, as mandated by Title III of the Jumpstart Our Business Startups Act.

The duty officer has determined that no earlier notice was possible.

At times, changes in Commission priorities require alterations in the scheduling of meeting items.

For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact:

The Office of the Secretary at (202) 551-5400.

Elizabeth M. Murphy
Secretary

Dated: October 21, 2013

 

http://www.sec.gov/news/openmeetings/2013/ssamtg102313.htm

 

 

SEC Extends Comment Period for Section 506 Reg D Advertising Rules

Washington, DC – The Securities and Exchange Commission extended the public comment period for proposed, new rules that would govern how businesses can advertise equity offerings to accredited investors under Rule 506 Regulation D.

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On July 10, 2013, the SEC issued rules that would lift the ban against general solicitations for Rule 506 Regulation D offering as mandated by Title II of the Jumpstart Our Business Startups Act.  The new rules lifted the ban effective September 23, 2013; however, the SEC also proposed for public comment additional rules that would regulate general advertising for Rule 506 offerings.

The comment period for the new rules closed on September 23, 2013, but on September 27, 2013, the SEC said it will reopen the public comment period.

Rule 506 exempts business from registering their securities with the SEC if they are offering and selling their equity only to “accredited investors” under Rule 501 of Regulation D. On July 10, 2013, the SEC also proposed, newadditional rules for public comment that would add restrictions to general solicitations.  The SEC’s new proposals would:

1.   Require the filing of a Form D no later than 15 days in advance of a general solicitation followed by a closing Form D amendment 20 days after the Rule 506 offering. The Crowdfund Intermediary Regulatory Advocates (CFIRA) commented to the SEC that the proposal is  ”inconsistent with the principles of the JOBS Act for general solicitation and advertising.”

2.  Require the placement of  a legend — that is, a disclaimer that the advertising is offering a private placement of securities — with any advertising. CFIRA noted that such a proposal would make it impossible to use services such as Twitter to make an offering.

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