Crowdfunding has become a common way for entrepreneurs to secure financing. In 2015, total global crowdfunding raised an estimated $34 billion in financing, compared to $2.7 billion in 2012. 1 With such a large impact on the economy, it was only a matter of time before industry regulation was enacted. On May 16, 2016, Regulation Crowdfunding…
Tag: Crowdfunding
Anti-Money Laundering in Crowdfunding: Update Pursuant to Final Rule
This blog post is written as an update to a Note previously published in the Michigan Business and Entrepreneurial Law Review on anti-money laundering (“AML”) regulation in crowdfunding.1 The Original Note analyzed proposed crowdfunding rules published on November 5, 2013 by the Securities and Exchange Commission (SEC).2 This update is based on the final rule,…
WARNING: The Federal Exchange Act May Limit the Utility of State Crowdfunding Exemptions
Posted by Jeff Thomas and Malika Simmons Historically, federal and state securities laws have made equity crowdfunding extremely difficult in the United States.1 However, equity crowdfunding laws that create new exemptions from costly registration requirements have recently been passed in several states including Michigan, Kansas, Indiana, and Wisconsin.2 Several other states have similar legislation pending.3…
Alternate Methods of Paying for College Tuition and Dealing with Our Nation’s Debt
The college graduation class of 2014 graduated with the highest average debt of any college class in the history of our country.1 College student’s student loan debt now amounts to $1.2 trillion dollars, and economists and business leaders are beginning to worry that student loan debt, which amounts to 6% of the total national debt,…
Fundrise for Everyone
Rise Companies Corporation, also known as Fundrise, acts as a crowdfunding and real estate investment platform based out of Washington, D.C. to promote local investment in real estate developments nationwide.1 Officially founded in 2012 –five years after the collapse of America’s financial and housing markets – Fundrise has put real estate crowdfunding on the charts.2…
Two Ways to Corner the Market: The Battle of Beer
There is a battle being played out in Ann Arbor and throughout the rest of Michigan. No, it has nothing to do with the Michigan Wolverines lackluster start to the football season. This battle is about beer! To be more specific, this battle is about the rapid growth of the craft beer industry in North…
(Jump)start Our Business Startups: The JOBS Act 500+ Days Later (Part 2)
Two years, one month, and three days have passed since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. A product of rare bipartisanship, the JOBS Act was praised on both sides of the aisle as improving access to capital for US small business, which would in turn drive economic growth.1 While…
Crowdfunding’s Intermediaries’ Obligation to Educate
When President Barack Obama signed the JOBS Act into law on April 5, 2012, Section 3(a) of the Securities Exchange Act of 1934 was amended to include a new definition for “funding portal.”1 Funding portals, along with brokers, are the lucky players through which all crowdfunding transactions must be conducted.2 But just how lucky are…
Tech in 2014: Bring out the Bubbly or Pop goes the Bubble?
Giants like Facebook and Twitter have entered the public markets with huge valuations, and more tech companies are expected to follow in 2014. However, this is only stirring the debate on whether those popping champagne bottles are the precursor of a popping tech bubble. Some say that we are seeing the dot-com bubble all over…
(Jump)start Our Business Startups: The JOBS Act 500+ Days Later (Part 1)
One year, 7 months, and 6 days have passed since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. The product of rare bipartisanship, the JOBS Act was praised on both sides of the aisle as improving access to capital for US small business, which could in turn drive economic growth.1 While…