- 4 years ago
Part of the Legacy Series. Although REG CF is now legal, it is imprtante to know the when you can 'crowdfund" for equity and not just rewards.
Entrepreneur beware - Equity Crowd Funding under Title III of the 2012 Jobs Act is has recently approved raising capital for equity under the REG CF aspect of the JOBS Act. .
However, we see companies claiming to be conducting a "crowd funding campaign" all over the place. This is very dangerous. They do not think they are breaking securities regulations or conducting fraud, but without the proper legal guidance and communication with the SEC, they very well may be. Ignorance, unfortunately, is not an excuse the SEC accepts when they decide to pursue legal action against a company or a CEO. Simply taking money from Accredited Investors to obtain start up financing is not enough if you do not have the proper paperwork in place.... wasn't the case before the Jobs Act and isn't the case now.
Tune in for this half hour segment to hear