Smith Anderson Advises the First North Carolina Startup to Launch a Title III Regulation Crowdfunding Campaign
Smith Anderson congratulates client ITFT, an automotive technology startup, as the first North Carolina company to launch an offering under Regulation Crowdfunding. ITFT announced today a public campaign via a crowdfunding portal operated by StartEngine Capital, LLC (StartEngine) that aims to raise development funds for the company’s signature product, the Safe Driving System, that will finance product development and prototype testing, as well as a comprehensive pilot program.
Representing ITFT since October 2016, Smith Anderson attorneys Benji Jones and Alex Bowling have guided ITFT through the Security and Exchange Commission’s (SEC) rules and forms comprising Regulation Crowdfunding. As a consultant on the drafting of the NC PACES Act, passed in July 2016, Benji is especially proficient in the nuances of investment crowdfunding and in guiding companies to reach new, unaccredited investors to grow their business.
“Encapsulated in a nearly 700 page adopting release, the Regulation Crowdfunding rules and regulations can seem quite complex and daunting to an uninitiated small business,” Benji explains. “In addition to assisting ITFT in planning for, and establishing the terms of, its crowdfunding offering, we guided them in designing rule-compliant offering materials to be filed with the SEC and included on the StartEngine platform.”
Effective in May 2016, more than four years after the passage of the JOBS Act, Regulation Crowdfunding allows companies to conduct offerings of up to $1 million from retail investors through an online intermediary such as StartEngine. Companies are allowed to raise capital under Regulation Crowdfunding from all investors, not just “accredited investors” as required under traditional private placement offerings.
“ITFT is the first North Carolina company to launch an offering under Regulation Crowdfunding,” Alex says. “As the first firm to have the opportunity to work on such a deal in this State, we are very excited to help ITFT tap into the ‘crowd’ to raise the capital it needs to achieve its business objectives by issuing securities under Title III of the JOBS Act and Regulation Crowdfunding.”
Interested individuals can find out more about ITFT’s crowdfunding campaign by visiting https://www.startengine.com/startup/itft.
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Founded in 1912, Smith Anderson has grown to become the largest business and litigation law firm headquartered in the world-renowned Research Triangle region and one of the largest in North Carolina. We provide a full range of legal services to a diverse and dynamic group of regional, national and international companies. Over 100 years of practicing law has grounded our firm’s culture, informed our perspective, and provided us the insight necessary to help our clients succeed. Over time, our core principles have remained unchanged. We remain personally dedicated to the success, prosperity and betterment of our clients and the communities we serve. For more information, please visit www.smithlaw.com.