IS IT OKAY TO HATE MY LAWYER SERIES REVIVES!
We are again faced with the aggravated uncertainties of an uncertain economy. You may have found your self in a position where you want to raise capital.
Institutional lenders (you know, banks and credit unions and so forth) are likely to again start tightening the belt.
WHAT ABOUT the Internet?
We have all heard about CROWD FUNDING, haven’t we? Should be easy. What could possibly go wrong?? After all, the Securities Act of 1933 was enacted and developed before the Internet, so can the government touch my Crowd Funding efforts? The answer is of course.
YET, the advent (not sure I even know what that word means, although I am still better than Paula at English and Math) of Crowd Funding can broaden your options. You will want to thoroughly research sites such as Kickstarter and Indiegogo. (Registered trademark insignias can be read after these names.)
Any effort to raise capital other than loans from institutional lenders requires consideration and consultation with your hated lawyer and your accountant about at least the following concepts:
1. Federal law regarding offering investments;
2. State law regarding offering investments;
3. Options to “offering a security;”
4. Options for offerings to only “accredited investors;”
5. Options that may fall under crowdfunding exceptions under some of the more recent “rules” promulgated (okay, fancy word for published and now force of law stuff) by the Security Exchanges Commission;
6. Small Company Offering Registration (“SCOR”) exceptions;
7. Other crowdfunding exemptions.
THUS, there is hope for you that you may not have had in prior to our last recession.
REGARDLESS… any consideration to raising capital still requires you to consult with your . . . Hated lawyer.
Good Luck and be Careful out there!