What Is Equity Crowdfunding?
Equity crowdfunding is when a private business raises capital through the sale of securities, like shares of common stock of a private business. It’s a common way for entrepreneurs to tap into the additional resources and money they need to get their business off the ground.
There are three types of securities offerings to know about:
- Offerings of securities under Regulation CF (Title III of the JOBS Act)
- Rule 506(c) (Title II of the JOBS Act)
- Regulation A (Title IV of the JOBS Act)
Regulations around equity crowdfunding are constantly developing since it’s a newer form of fundraising. Meeting legal requirements can be complex so it’s imperative to have experienced lawyers guide you through this process the right way. Call us today at (212) 262-9823 or contact us here for an initial conversation with a lawyer that will understand your needs and get you moving faster towards success.