New Article: Crowdfunding Changes Hope to Jump-Start Investments
By Sasha Bau, Esq., Sabari Bagchi, Esq., and Adam Valko

The Jumpstart Our Business Startups (“JOBS”) Act was signed into law in early 2012 with bipartisan support, designed to encourage funding of small businesses and ease various securities regulations. Title III, which deals with equity crowdfunding in the startup community, received a lot of attention because it was the first time the government developed a specific avenue for business to raise money through crowdfunding. Prior to these crowdfunding rules, businesses and other issuers could raise funds through the private placement exemption in the Securities Act of 1933. However, this exemption permitted general solicitation only to accredited investors, or those who possessed significant wealth.  Continue Reading
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