Tuesday, March 27, 2012

Going with the Flow -- Crowdfunding Rules for Issuers

The Crowdfund Act of 2012 is soon to be signed by the President, and questions are swirling about.  How long till transactions can take place?  How much can be raised?  Is it a platform or a portal?  What are the basic rules for issuers (those seeking money), etc.

Well, first, we are going with the term portal, as that is what the platforms are called in the Crowdfunding Act.

As for issuers:  here is a basic flowchart for how it will work.  Sara Hanks (the leading DC attorney extraordinare on this subject, www.CrowdCheck.biz ) has agreed with me on this, though the lawyers in us are itching to load it up with asterisks and caveats, as there are certainly many details not here.  But this gives you the fundamental flow.  See it also at www.CrowdFundSecurities.com/CrowdFundSecurities/CrowdFund_Resources.html.

Next I will look at it from the crowdfunding portal's point of view.  Stay tuned.

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