In a recent post on the inVigor Law Group blog, we discussed some of the early data about the use of Rule 506(C), which is a type of “crowdfunding” available to accredited investors. The data that was released by the SEC provided evidence that companies are using the new rule to raise funds, and the offerings utilizing Rule 506(c) are smaller than traditional private placements under Rule 506(b). What the numbers don’t convey is how accessible this new rule can be for small businesses.

What is Rule 506(c)?
For nearly a century, companies looking to raise investments under Rule 506 were not allowed to publicly advertise the securities offering to investors. Since the JOBS Act was passed, this has all changed. As…

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In the wake of the recent passage of the JOBS Act, a group of top debt and equity crowdfunding platform experts launched the Crowdfunding Professional Association (CfPA). Yesterday in New York City, an excited, growing community of crowdfunding proponents gathered with the goal of uniting the many voices powering this “historic breakthrough in capital creation.”

Crowdfunding, in very simple terms, allows startups and other businesses to raise up to $1 million per year from investors through online funding portals (websites). Check out this article for a comprehensive rundown of crowdfunding in plain English terms.

Berkeley Geddes, chair of the CfPA executive committee, recently told Street Fight that “crowdfunding gives a chance to the entrepreneur who was not born into privilege to create…

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