Ever-changing federal regulations and proposed statewide legislation can be confusing for companies exploring crowdfunding as a means of obtaining capital. Smith Anderson Partner Benji Jones has deep experience on the issue and shared her thoughts on new SEC regulations with WRAL TechWire Editor Rick Smith in an article titled “As crowdfunding kicks in, 'proceed with caution,' attorney says.”
Title III of the JOBS Act, which includes crowdfunding, was passed by Congress and signed by President Obama in 2012. The SEC recently released specific rules governing crowdfunding. Benji shares that Title III “lets companies raise up to $1 million every 12 months through the use of the internet. This is an historical event in the democratization of capital markets and for those of us interested in crowdfunding.”
Benji went on to say that companies and investors should proceed with caution and fully understand the SEC’s strict rules. For instance, companies must go through a crowdfunding intermediary, and investors should be cautious of fraud. North Carolinians are also waiting to see if the legislature will pass a bill governing crowdfunding in the state.
Benji’s practice focuses on providing advice to public and private companies on a broad spectrum of legal issues affecting businesses, including public equity and debt offerings, domestic private placements, crowdfunding, and other non-traditional private offerings and repurchase programs.