Jobs Act and Crowdfunding for Startups and Early Stage Ventures

 

Jobs Act and Crowdfunding

The JOBS Act, which was signed into law on April 5, 2012, seems to offer a great way to capitalize startups, early stage, or even more mature ventures through crowdfundingAttorney for N2VATE, Eric Alspaugh, spent four hours researching the Act to gain some insights.  Here’s a brief review of his findings, below:

  •  According to the LAW, the SEC must issue regulations by  January 1, 2013 (270 days from passing the law).  None of the crowd source portals can begin operations before that.
  • The main issue will be the registration with SEC. The law makes it sound like the site must still have a broker dealer from a national association- which would make this difficult for most potential beneficiaries.
  • A big issue which everyone is missing, except for the lawyers, is that the Officers of the company will be personally liable – no corporate shield!
  • Another important issue is whether VC or other investors will be deterred from follow-on investment.
  • It appears that there is a million dollar limit.

Please post your own insights and knowledge.

Download a copy of the Jobs Act here: JOBS Act 2012

Download a copy of the Jobs Act Summary here: JOBS ACT Summary (2)1

For more information contact legal@N2VATE.com.

Below is a list of crowd funding resources from http://coolintl.com/  April, 2012:

Debt Funding via Crowdfunding

Variety & Creative Projects

Books: www.authr.com

 

Music

Film

Share Expenses

Charitable

Marketing, Communications, Media, Public Messages

App Software Development

Businesses / Ventures / Start ups

White Label Crowdfunding, Developer API, Crowdfunding Development Partners