Law360 Publishes Olshan Expert Analysis on Regulation Crowdfunding

Law360 (subscription required) published “A Balanced Proposal For Equity-Based Crowdfunding” by Partner Spencer G. Feldman and Associate Nik Talreja that analyzes the SEC’s proposed amendments to the Securities Act of 1933 to implement Regulation Crowdfunding in accordance with Title III of the JOBS Act. Crowdfunding has clearly been one of the most talked about JOBS Act topics over the past few years and final rules are now expected to be adopted by the SEC in the first half of next year. According to the authors, Regulation Crowdfunding reflects a deliberate attempt to balance the need for both a spur to small business capital formation and measures to protect investors from fraud. As with all financing transaction structures, the authors describe how crowdfunding may be ideal for some companies, but not for others. The authors also suggest that companies and their financial advisers may favor making a crowdfunding transaction a component of a larger capital-raising strategy to increase retail participation in companies. Our client alert on Regulation Crowdfunding can be read here.