The 2018 "case of the 50 ETH doge" was just the beginning. Now DAOs are trying to decentralize legal disputes—but it isn't so easy to cut out humans.

One drawback of private companies is they’re not liquid, meaning you can’t sell your shares easily. That’s why lots of people are spending lots of time and money creating secondary markets for private companies. These secondary markets typically take the form of an “alternative trading system,” or ATS, owned and operated by a broker-dealer. More …

Continue reading Publicly-Traded Partnerships: The Trap for LLCs Traded on ATS

An issuer raising capital under Rule 506(c) must take “reasonable steps” to verify that investors are accredited. Rule 506(c)(2)(ii) specifies several steps that will be deemed reasonable, like getting a letter from the investor’s accountant. Looking to save money, some issuers are tempted to verify investors themselves rather than using a third-party service like VerifyInvestor. …

Continue reading USE A THIRD PARTY TO VERIFY INVESTORS UNDER RULE 506(c)

In this blog post I summarized the potential legal liability of issuers raising capital using Title II Crowdfunding (aka Rule 506(c)), Title III Crowdfunding (aka Reg CF), and Title IV Crowdfunding (aka Regulation A). Here, I’ll summarize the potential legal liability of a registered Title III funding portal. To start, let’s distinguish between two kinds …

Continue reading The Legal Liability of A TITLE III Funding Portal

On October 21, 2020, the United States District Court for the Southern District of New York (SDNY) entered a final judgment on consent against Kik Interactive Inc. (Kik) after the Court previously determined that Kik failed to comply with the registration requirements of the Securities Act of 1933[1] (Securities Act) as previously alleged by the...… Continue Reading

Each year, Inc. Magazine’s 500 and 5000 lists feature the most successful, up-and-coming companies in the United States. In 2018, the Inc. 500...

Not too long ago, the Securities and Exchange Commission (SEC) concluded the comments phase of a proposal to update, and hopefully improve, rules...

David Odusanya is the Co-Founder & Chief Creative Officer at Solace, the digital first, consumer-centric, modern funeral solution, which is currently fundraising on...

On Jun 11, 2020 Private companies raising money in private offerings of securities often rely upon an exemption under Rule 506...

Micha Magid is the Co-CEO & Co-Founder of Mighty Quinn’s Barbeque, an award-winning, fast casual group serving up authentic, slow-smoked barbeque, which is...

The SEC just proposed major changes to every kind of online offering:  Rule 504, Rule 506(b), Rule 506(c), Regulation A, and Regulation CF. The proposals and the reasoning behind them take up 351 pages. An SEC summary is here, while the full text is here. The proposals are likely to become effective in more or less their …

Continue reading SEC PROPOSES MAJOR UPGRADES TO CROWDFUNDING RULES

Lindsay Van Leer is the Co-Founder & COO of Padlist, an online real estate database platform for renters and landlords, which she started...