Fundraising is essential for many startups, but the types of fundraising methods are limited. The traditional methods are bootstrapping, convertible notes, simple agreements for future-equity (SAFEs), and priced equity rounds. We have guided many founders through fundraising. Equity crowdfunding is a newer option. Crowdfunding is meant to allow founders to accept small investments from a […]
UPDATED: The JOBS Act passed Congress and was signed into law by President Obama. Final bill text here. I’ve previously posted (here and here) about the crowdfunding measures that have been working their way through Congress. The House has now passed the JOBS Act (text here, for the truly wonky), which contains these measures, and […]
In my last post, I reviewed the “crowdfunding” legislation that’s before Congress. Since that legislation may be stalled, I’d outline how a company might orchestrate a crowdfunding round in the absence of legislation. For this discussion, a general familiarity with the laws and regulations governing private offerings is helpful. (You can read goodcounsel’s GoodGuide here.) […]
Crowdfunding – the aggregation of small payments from a broad base of funders – has been enabled by the technologies of the Internet, particularly social media and easy electronic payments. Filmmakers have been bootstrapping movies with crowdfunding for some time. It has been widely used in the non-profit arena. Kickstarter operates a popular crowdfunding platform […]