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INSERT INTO `wpsl_posts` VALUES (40,1,'2016-07-05 14:01:22','2016-07-05 14:01:22','','animated_crowd','','inherit','open','closed','','animated_crowd','','','2016-07-05 14:01:22','2016-07-05 14:01:22','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2016/07/animated_crowd.gif',0,'attachment','image/gif',0),(44,1,'2016-07-05 14:21:15','2016-07-05 14:21:15','','Jossey','','inherit','open','closed','','jossey','','','2016-07-05 14:21:15','2016-07-05 14:21:15','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2016/07/Jossey.jpg',0,'attachment','image/jpeg',0),(58,1,'2016-07-05 15:03:54','2016-07-05 15:03:54','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.1\" _module_preset=\"default\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/cryptoheader.png\" background_position=\"top_center\" custom_padding=\"100px||100px||false|false\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.3\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#ffffff\" header_2_text_color=\"#ffffff\" header_3_text_color=\"#ffffff\" header_text_shadow_style=\"preset1\" header_text_shadow_color=\"rgba(0,0,0,0.9)\" header_2_text_shadow_style=\"preset1\" header_2_text_shadow_color=\"rgba(0,0,0,0.75)\"]<h1>Contact Jossey PLLC</h1>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"3.22.3\"][et_pb_row column_structure=\"3_5,2_5\" _builder_version=\"3.25\"][et_pb_column type=\"3_5\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/crowdfunding.png\" alt=\"The Crowdfunding Lawyers\" title_text=\"The Crowdfunding Lawyers\" _builder_version=\"4.6.5\" width=\"80%\"][/et_pb_image][et_pb_text _builder_version=\"4.6.3\" _module_preset=\"default\"]<p>1220 L Street, NW<br />STE 100-475<br />Washington, DC 20005</p>\n<p><a href=\"mailto:info@thecrowdfundinglawyers.com\">info@thecrowdfundinglawyers.com</a></p>[/et_pb_text][/et_pb_column][et_pb_column type=\"2_5\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"4.6.5\" custom_button=\"on\" button_text_size=\"24px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" animation_style=\"zoom\" hover_enabled=\"0\" button_text_size_tablet=\"18px\" button_text_size_phone=\"18px\" button_text_size_last_edited=\"on|tablet\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" sticky_enabled=\"0\"][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" disabled_on=\"off|off|off\" _builder_version=\"4.6.5\" background_color=\"#003563\" width=\"100%\" global_module=\"5041\" saved_tabs=\"all\"][et_pb_row column_structure=\"1_4,1_4,1_4,1_4\" use_custom_gutter=\"on\" make_equal=\"on\" disabled_on=\"off|off|off\" _builder_version=\"4.6.5\" width=\"100%\" max_width=\"98%\" custom_margin=\"|||\" custom_padding=\"|41px||\"][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|phone\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" module_alignment=\"left\" min_height_tablet=\"\" min_height_phone=\"\" min_height_last_edited=\"on|phone\" custom_margin_tablet=\"\" custom_margin_phone=\"\" custom_margin_last_edited=\"on|desktop\" custom_padding_tablet=\"\" custom_padding_phone=\"\" custom_padding_last_edited=\"on|desktop\" module_alignment_tablet=\"center\" module_alignment_phone=\"center\" module_alignment_last_edited=\"on|desktop\"]<p>[custom-twitter-feeds]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds hashtag=\"#crowdfunding\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds hashtag=\"#crypto\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds screenname=\"SEC_News\"]</p>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]','Contact Us','','publish','closed','closed','','contact-us','','','2020-09-28 20:59:18','2020-09-28 20:59:18','',0,'http://www.thecrowdfundinglawyers.com/?page_id=58',0,'page','',0),(63,1,'2016-07-05 15:11:50','2016-07-05 15:11:50','','cfglobe','','inherit','open','closed','','cfglobe','','','2016-07-05 15:11:50','2016-07-05 15:11:50','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2016/07/cfglobe.jpg',0,'attachment','image/jpeg',0),(114,1,'2017-03-09 00:56:04','2017-03-09 00:56:04','<p>Equity crowdfunding’s first six months ended in December, the numbers are in and the outlook is promising. So far, the crowd has given entrepreneurs and business startups millions in funding, filling a crucial market gap.  As the kinks are worked out crowdfunding will continue to expand and become a viable option for thousands more new and growing American businesses. But in just a half year the industry’s dynamism is already apparent.</p>\n<p>Crowdfunding in all forms <a href=\"http://www.crowdsourcing.org/editorial/global-crowdfunding-market-to-reach-344b-in-2015-predicts-massolutions-2015cf-industry-report/45376\">topped</a> venture capital in 2016. The crowdfunding industry is doubling or more every year. As stated in a recent <a href=\"https://www.forbes.com/sites/chancebarnett/2015/06/09/trends-show-crowdfunding-to-surpass-vc-in-2016/#214356024547\">article</a>, equity crowdfunding alone will surpass venture capital as the leading source of startup money by 2020 if it stays on the same trajectory.</p>\n<p>During the first six months businesses could take advantage of equity crowdfunding, 187 issuers made offerings, 24 were pulled leaving 163 asking for a total of $18 million. As of January 15, 33 offerings with year-end deadlines had closed receiving $10 million. Each month in 2016 brought an average of 22 new offerings over a variety of industries and through multiple portals.</p>\n<p><a href=\"https://www.sec.gov/dera/staff-papers/white-papers/RegCF_WhitePaper.pdf\">According to the SEC</a>, the average offering was targeting $110,000; the average scale of new offering activity on a monthly basis was approximately $2.4 million. Among those that reported non-zero total assets or sales in the prior fiscal year, the median asset growth was 15% and median sales growth 80% for the most recent fiscal year.</p>\n<p>Early adopters were mostly small companies needing quick infusions of cash. About 40% of issuers reported non-zero revenue and 9% of issuers reported a net profit in the most recent fiscal year. Among issuers that reported non-zero assets in the prior fiscal year, the median growth rate was 15%. Thus crowdfunding is providing funds to new businesses that current markets weren’t servicing: startups and young businesses with relatively modest financial needs and lacking the sophistication or need for bigger offerings. Most issuers, 36%, opted for common or preferred equity. Debt accounted for 20%, and there were various other security types, such as units, convertibles, “simple agreements for future equity,” and others (including revenue sharing and membership / limited liability company (LLC) interests).</p>\n<p>So what is exactly is equity crowdfunding?</p>\n<p>It is part of the Jumpstart of Our Business Startups (JOBS) Act. Congress enacted this law on April 5, 2012. Title III of the JOBS Act amended Section 4 of the Securities Act of 1933 (Securities Act) and created a new exemption from registration for Internet-based securities offerings of up to $1 million over a 12- month period.</p>\n<p>Here are the basics:</p>\n\n<ul>\n 	<li>A given issuer is able to raise up to $1 million across all crowdfunding offerings in a 12- month period. An issuer must raise at least the target amount to receive funds. Crowdfunding securities are generally subject to resale limitations for one year.</li>\n</ul>\n<ul>\n 	<li>The rules imposed limits on the amount that an investor can invest in all Title III crowdfunding offerings over a 12-month period. Investors with both an annual income and net worth of at least $100,000 can invest up to 10% of the lesser of annual income or net worth, but an investor’s total investment across all Title III offerings may not exceed $100,000 in a 12-month period. Other investors can invest the greater of $2,000 and 5% of the lesser of annual income or net worth;</li>\n</ul>\n<ul>\n 	<li>Crowdfunding issuers are subject to disclosure requirements at the time of the offering (on Form C), during the offering’s progress and on completion of the offering (on Form C-U) and annually in the form of annual reporting requirements (on Form C-AR).</li>\n</ul>\n<ul>\n 	<li>Issuers in larger offerings face additional financial statement requirements – in offerings of over $100,000 in a 12-month period, financial statements must be reviewed by an independent accountant, and in offerings of over $500,000 in a 12-month period (except the issuer’s first offering), financial statements must be audited.</li>\n</ul>\n<ul>\n 	<li>Crowdfunding securities must be offered through a registered broker-dealer or a registered funding portal, a new intermediary type established by the 2015 rules. These intermediaries are mandated to take measures to reduce the risk of fraud, make required disclosures about issuers available to the public, provide communication channels to permit discussion of offerings on the platform, disclose the compensation received by an intermediary, provide educational materials to investors, and comply with additional requirements related to investor commitments, notices to investors, and maintenance and transmission of funds. Registered funding portals that participate in crowdfunding offerings may engage in a narrower set of activities than broker-dealers.</li>\n</ul>\n<p><a href=\"https://www.sec.gov/dera/staff-papers/white-papers/RegCF_WhitePaper.pdf\">According to the SEC</a>, As of December 31, 2016, 13 funding portals have facilitated equity crowdfunding offerings. FINRA has approved an additional 8 portals and many more will arrive in 2017. The five largest portals based on the number of offerings accounted for 71% of initiated offerings. Hence, the majority of offering activity is limited to only a quarter of the active intermediaries in the crowdfunding market. The results are more skewed towards the five largest intermediaries when considering only completed offerings; they accounted for more than 90% of market share.</p>\n<p>The future of equity crowdfunding is bright but could be even brighter. Some Congressional fixes could make it explode. In the next post, I will discuss how Congress could help even more entrepreneurs and small businesses with some fixes.</p>\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC </a></p>','Equity Crowdfunding, the first six months','','publish','closed','closed','','equity-crowdfunding-the-first-six-months','','','2019-08-15 19:30:18','2019-08-15 19:30:18','',0,'http://www.thecrowdfundinglawyers.com/?p=114',0,'post','',0),(117,1,'2017-05-23 16:04:20','2017-05-23 16:04:20','Equity crowdfunding celebrated its first birthday last week. The innovative securities law democratizes business capitalization and allows anyone to potentially make a bundle on a young company. Although Congress must tweak the law to realize its potential the future looks bright.\n\nThe <a href=\"https://www.toptal.com/finance/fundraising/us-equity-crowdfunding-market\">naysayers</a> fretted equity crowdfunding wouldn’t work. They said scandal and fraud would taint the process. Thus far they are wrong; the system of checks and balances between accountants and lawyers representing companies and due diligence by funding portals has combined to root out fraud while educating investors about the risks.\n\nAccording to Catherine Yushina, COO &amp; Co-Founder of Startwise, so far <a href=\"https://www.crowdfundinsider.com/2017/05/100442-regulation-crowdfunding-one-year-force/\">265 companies</a> have entered the equity crowdfunding market aggregating an impressive <a href=\"https://www.crowdfundinsider.com/2017/05/100633-nextgen-crowdfunding-title-iii-reg-cf-crowdfunding-exceeds-37-million-investements/\">$37 million</a> in investment. Around <a href=\"https://www.crowdfundinsider.com/2017/05/100436-doug-ellenoff-shares-perspective-anniversary-regulation-crowdfunding-launch/\">half</a> have successfully completed a fundraising round.\n\nBut this is just the beginning. There are approximately <a href=\"https://www.crowdfundinsider.com/2017/05/100442-regulation-crowdfunding-one-year-force/\">100 million</a> startups opening each year and only 798 venture capital funds in the U.S. And of existing small businesses, <a href=\"https://www.crowdfundinsider.com/2017/05/100442-regulation-crowdfunding-one-year-force/\">80%</a> have never considered alternative funding options. That is changing rapidly. In the next few years the alternative funding market will grow to <a href=\"#fullscreen&amp;from_embed\">20%</a> of small business capitalization.\n\nEarly adopters represent a wide-range of industries including tech, real estate, fashion, sports, and entertainment. Food &amp; Beverage and Wine &amp; Spirits lead taking a combined almost <a href=\"https://www.crowdfundinsider.com/2017/05/100442-regulation-crowdfunding-one-year-force/\">$11 million</a>.\n\nBut it’s not just about the boon to new businesses needing capital. On the giving end, millions of people now have the opportunity to invest in newest companies at a fraction of previous amounts.&nbsp; Before Title III of the JOBS Act the SEC only allowed “accredited investors” to participate in crowdfunding. This represented about 8 million people. Now around 240 million people can invest in potentially lucrative ventures at their beginning stages.\n\nMore exciting is that confidence is growing in the new markets. According to <a href=\"https://wefunder.com/stats\">We-Funder</a>, the average early investment was under $250, by the end 2016 it had jumped to $833 per person.\n\nSeeing the success rewards based crowdfunding platforms have started offering securities. Crowdfunding platform giant <a href=\"https://www.crowdfundinsider.com/2017/05/100592-indiegogo-founder-slava-rubin-talks-equity-crowdfunding-reg-cf-anniversary/\">Indiegogo</a> is an impressive 12 for 12 in successful startup funding.\n\nThe future looks bright but Congress still has a role. When the SEC finalized the <a href=\"https://www.sec.gov/rules/final/2015/33-9974.pdf\">rules</a>, it determined limits from the statute. Instead of taking the higher of annual income and net worth as the operative number to base the limit it went with the lower.\n\nThis can be big a difference. For instance under this approach, an investor with annual income of $50,000 a year and $105,000 in net worth would be subject to an investment limit of $2,500, in contrast to the proposed rules in which that same investor would have been eligible for an investment limit of $10,500. Using this lower limit hampers a startup’s most fervent supporters from pushing a potential issue over the top. Moreover, the overall limit of a little over $1 million per year is <a href=\"https://www.crowdfundinsider.com/2017/05/100592-indiegogo-founder-slava-rubin-talks-equity-crowdfunding-reg-cf-anniversary/\">too low</a> for many crowdfunded projects and harms market fluidity and dynamism. Another current proposal calls for tax credits for equity crowdfund investors.\n\nWhile Congress hashes out improvements, the future of equity crowdfunding is bright. Given the number small businesses and startups in the US and the number of potential investors analysts could be discussing future birthdays in terms of billions, not millions.\n\nBy <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>\n\n&nbsp;\n\n&nbsp;','Happy Birthday Equity Crowdfunding!','','publish','open','open','','happy-birthday-equity-crowdfunding','','','2019-06-04 02:21:47','2019-06-04 02:21:47','',0,'http://www.thecrowdfundinglawyers.com/?p=117',0,'post','',0),(120,1,'2017-06-18 16:04:47','2017-06-18 16:04:47','<p><span style=\"font-size: 12pt;\">Few issues in Washington get prodigious bipartisan support, but the 2012 JOBS Act’s equity crowdfunding title was one. After a long delay, <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> finally <a href=\"http://www.thecrowdfundinglawyers.com/2017/05/23/happy-birthday-equity-crowdfunding/\">went live</a> in last May. Now Congress should deregulate it. </span></p>\n<p><span style=\"font-size: 12pt;\">But a year on some are asking, ‘<a href=\"https://www.crowdfundinsider.com/2017/06/102094-where-is-the-crowd/\">Where is the Crowd</a>?’ The crowdfunding total is approaching $40 million but it should be billions. A recalcitrant SEC and onerous regulations are two possible answers to why equity crowdfunding has steady but unspectacular growth in year one.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>House starts Congressional deregulation </strong></h3>\n<p><span style=\"font-size: 12pt;\">To solve this, the House <a href=\"https://financialservices.house.gov/uploadedfiles/2017-04-24_financial_choice_act_of_2017_comprehensive_summary_final.pdf\">passed</a> the Financial CHOICE Act. Although mostly a remedy to Dodd Frank, the Act includes a complete overhaul of equity crowdfunding. In fact, it includes a complete deregulation. According to <a href=\"https://www.crowdfundinsider.com/2017/06/101700-house-approves-financial-choice-act-dodd-frank-replacement/\">CrowdfundInsider.com</a>, gone are: </span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">limits on how much a company can raise;</span></li>\n 	<li><span style=\"font-size: 12pt;\">requirements for financial statements or, for that matter, any other type of disclosure;</span></li>\n 	<li><span style=\"font-size: 12pt;\">requirements to file annual reports after completing a raise;</span></li>\n 	<li><span style=\"font-size: 12pt;\">the risk of inadvertently becoming a fully reporting company, as purchasers of these securities are not counted towards the 500 non-accredited shareholder limit;</span></li>\n 	<li><span style=\"font-size: 12pt;\">the requirement to conduct the offering on an SEC and FINRA registered portal;</span></li>\n 	<li><span style=\"font-size: 12pt;\">restrictions on “off portal” solicitation and advertising; and</span></li>\n 	<li><span style=\"font-size: 12pt;\">restrictions on how much an investor can invest.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\">The chances Congress will completely deregulate are slim. First, the bill has yet to face the Senate where some or all of it could be tossed in reconciliation. Second, the SEC must implement what survives. Some have accused the agency as being openly hostile to the very idea of crowdfunding. As Edward Knight, Executive Vice President and General Counsel of NASDAQ, stated in a March JOBS Act <a href=\"https://www.youtube.com/watch?v=ZK7vePar4WI\">hearing</a> for the House Committee on Financial Services:</span></p>\n\n<blockquote>\n<p><span style=\"font-size: 12pt;\">From the outset the SEC’s view of [equity crowdfunding] was they were not for this they and made it shall I say needlessly complicated and did not approach it except as this this was something where the public is going to get harmed and we need to narrow it as much as possible.</span></p>\n</blockquote>\n<p><span style=\"font-size: 12pt;\">At the very least, the SEC doesn’t seem to react well to change. Acting SEC Chairman Michael Piwowar described the changes the JOBS Act makes to the SEC’s mission this way:</span></p>\n\n<blockquote>\n<p><span style=\"font-size: 12pt;\">The JOBS Act requires the Commission to think of capital formation and investor protection in fundamentally different ways than we have in the past. The crowdfunding provision of the JOBS Act forces us to think outside of our historical securities regulation box and to create a different paradigm than the one we have used for the past eight decades.</span></p>\n</blockquote>\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Congress will deregulate but it will take more pressure </strong></h3>\n<p><span style=\"font-size: 12pt;\">Whether through the CHOICE Act or a standalone bill, equity crowdfunding needs changes to reach its potential to provide much needed capital to America’s entrepreneurs and small businesses. The sooner Congress enacts these reforms the faster America’s economic engine can start humming again.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via<a href=\"https://www.thecrowdfundinglawyers.com/\"> www.thecrowdfundinglawyers.com</a> </span></p>','Is Congress about to Deregulate Equity Crowdfunding?','','publish','open','open','','is-congress-about-to-deregulate-equity-crowdfunding','','','2019-08-08 12:34:54','2019-08-08 12:34:54','',0,'http://www.thecrowdfundinglawyers.com/?p=120',0,'post','',0),(123,1,'2017-06-27 16:47:43','2017-06-27 16:47:43','<p><span style=\"font-size: 12pt;\">The SEC recently <a href=\"https://investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-be-cautious-safes-crowdfunding\">warned</a> investors about a popular <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> security called a ‘SAFE’—Simple Agreement for Future Equity. The Commission is concerned those purchasing SAFEs may be unaware of their risks. It thinks they should be cautious of this “exotic” Silicon Valley security.</span></p>\n<p><span style=\"font-size: 12pt;\">Although SAFEs have drawbacks, if done with favorable terms they provide potentially big returns. They also give early stage companies freedom to manage initial growth without the burdens associated with other securities. Investors should always weigh risks but SAFEs are not inherently unsafe, they can benefit both startups and early investors.  </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>SAFE\'s Silicon Valley origins don\'t make them unsafe</strong></h3>\n<p><span style=\"font-size: 12pt;\">SAFE’s are a <a href=\"https://www.crowdfundinsider.com/2017/05/100072-sec-posts-investor-bulletin-cautioning-use-safes-crowdfunding/\">product</a> of Y Combinator, rated by <a href=\"http://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y-combinator-tops-with-7-billion-in-value/#5afce1446dfe\">Forbes</a> the most successful startup incubator. Its companies have a combined valuation of <a href=\"http://www.ycombinator.com/\">$8 billion</a> and include well-known names like Reddit and Airbnb. SAFEs arose as an <a href=\"https://blog.ycombinator.com/announcing-the-safe-a-replacement-for-convertible-notes/\">alternative</a> to the convertible notes Silicon Valley startups provided early investors. These contracts featured sometimes-burdensome interest rates and maturity dates.</span></p>\n<p><span style=\"font-size: 12pt;\">As the SEC notes, SAFEs are not equity or debt, like a warrant they promise future equity if the company reaches certain benchmarks or triggering events. These could include future funding rounds, acquisition, or IPO. A SAFE in essence rewards early investors willing take bigger risks with larger returns if the company rises as forecast.</span></p>\n<p><span style=\"font-size: 12pt;\">This promise, however, comes with drawbacks on the investor side. Investors don’t get immediate ownership as they would with common stock. They have no voting rights and, there may be buyout clauses, or repurchase rights that could lessen the appeal. They are not debt so accrue no interest and, of course, they may never convert if the triggering event doesn’t happen.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>SAFE\'s can benefit young companies and investors </strong></h3>\n<p><span style=\"font-size: 12pt;\">But the factors that work against SAFEs investors have reciprocal benefits for young companies. They provide capital without strings that stifle flexibility in early stages and allow the company to quickly adapt. The documents are relatively simple mean less time for tedious negotiations.  And the lack of voting rights or maturity dates allows entrepreneurs flexibility to grow without the burden of multiple owners or the threat of looming debt payments.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Should Reg CF investors trust SAFE\'s?</strong></h3>\n<p><span style=\"font-size: 12pt;\">Many companies considering equity crowdfunding fit the SAFE model. They are early stage ventures with limitless potential but need quick, simple financing to implement next-level growth or reach benchmarks that trigger future funding. As with any investment, the terms are paramount. Does the SAFE come with a generous valuation cap or discount rate that adequately rewards early investors taking bigger risks and granting more autonomy? These details inform whether a particular SAFE is worth the risk.</span></p>\n<p><span style=\"font-size: 12pt;\">Companies offering SAFEs on <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> should realize these bigger investor risks. They should provide perks and very <a href=\"https://www.crowdfundinsider.com/2016/06/86528-safes-the-investment-vehicle-of-choice-for-reg-cf-issuers/\">favorable terms</a> with market caps and discount rates. They should also realize they are competing against instruments that give investors more upfront security.</span></p>\n<p><span style=\"font-size: 12pt;\">But generally SAFEs are not unsafe, they require a bigger risk upfront for a heftier reward later on.</span></p>\n<p><span style=\"font-size: 12pt;\">This post is not legal or financial advice. Investors should consult a lawyer before purchasing any financial instrument through <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></span></p>','Are \'SAFEs\' Unsafe for Equity Crowdfunding?','','publish','open','open','','are-safes-unsafe-for-equity-crowdfunding','','\nhttps://blog.ycombinator.com/announcing-the-safe-a-replacement-for-convertible-notes/','2019-08-04 14:03:34','2019-08-04 14:03:34','',0,'http://www.thecrowdfundinglawyers.com/?p=123',0,'post','',0),(127,1,'2017-07-05 14:33:56','2017-07-05 14:33:56','[et_pb_section admin_label=\"section\"]\n		[et_pb_row admin_label=\"row\"]\n			[et_pb_column type=\"4_4\"][et_pb_text admin_label=\"Text\"]<p><span style=\"font-size: 12pt;\">Music and cable television have seen major disruptions in the past 15 years, but movies have thus far proven immune. That’s about to change. Equity crowdfunding and blockchain distribution will soon turn <a href=\"https://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/\">Tinseltown</a> upside down.</span></p>\n<p><span style=\"font-size: 12pt;\">Currently the movie business operates in an opaque <a href=\"https://www.forbes.com/sites/rogeraitken/2017/06/13/decentralizing-the-hollywood-machine-with-blockchain-tech-libertarian-filmmaking/#58fd3c695da1\">netherworld</a>, full of middlemen, secret contracts, and protection rackets. Studio heads and a few A-list actors gain fortune and fame whilst the rest ekes out livings.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Hollywood makes movies in secret for a reason </strong></h3>\n<p><span style=\"font-size: 12pt;\"><a href=\"https://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/\">Hollywood’s</a> financial structure is murkier than a spy-thriller. According to industry accounting, even runaway hits like <em>The Hobbit</em> trilogy lose money.</span></p>\n<p><span style=\"font-size: 12pt;\">How are movie dollars made? According to <a href=\"http://www.slate.com/articles/arts/the_hollywood_economist/2005/08/hollywoods_profits_demystified.html\">reports</a>, major studios get revenue from licensing deals with broadcasters. Studios themselves are part of these corporate structures. So outsiders lacking massive archives can\'t break through without constant hits.</span></p>\n<p><span style=\"font-size: 12pt;\">Rewards crowdfunding like Kickstarter and Indiegogo tried to breach the <a href=\"https://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/\">Hollywood</a> fortress but the gatekeepers <a href=\"https://www.financialpoise.com/hollywood-produces-an-early-equity-crowdfunding-hit/\">repelled</a> them. Enticing the crowd with DVDs and other goodies preproduction distracts talent, robs films of commercial value, and degrades marketing and licensing opportunities.  </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong><span style=\"font-size: 12pt;\">Equity Crowdfunding will change how movies are financed  </span></strong></h3>\n<p><span style=\"font-size: 12pt;\">Enter <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a>. <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>—<a href=\"http://www.thecrowdfundinglawyers.com/2017/05/23/happy-birthday-equity-crowdfunding/\">now a year old</a>—allows moviegoers to become equity partners in films and share in profits. Instead of a DVD, <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> investors get ownership. Investors still get perquisites. And producers can offer large investors roles as extras, access to exclusive parties, or behind-the-scenes looks at production. </span></p>\n<p><span style=\"font-size: 12pt;\">Producers not only get their projects partially funded but also get a ready-made marketing operation. The potential for financial payout incentivizes <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> investors to become marketers.. This cast of potentially hundreds or thousands of acolytes gleefully <a href=\"https://www.financialpoise.com/hollywood-produces-an-early-equity-crowdfunding-hit/\">spreads the word</a> on social media, building grassroots excitement for a movie premier. Traditional advertising can’t buy this organic hype.  </span></p>\n<p><span style=\"font-size: 12pt;\">Mircoventures/Indiegogo portals crowdfunded two movie early adopters. Animated film ‘<a href=\"https://app.microventures.com/crowdfunding/bunny-bravo\">Bunny Bravo</a>’ has raised almost $150K towards its goal of 200K to cover distribution and marketing.  ‘<a href=\"https://app.microventures.com/crowdfunding/field-guide-to-evil?referral_code=indiegogo\">Field Guide to Evil</a>’ successfully completed a $500K offering earlier this year.</span></p>\n<p><span style=\"font-size: 12pt;\">Entertainment is one of the leading sectors of the nascent <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a> movement.  According to Crowdfund Capital Advisors, these ventures have <a href=\"http://crowdfundcapitaladvisors.com/cca-regulation-crowdfunding-indices/\">received</a> almost $3.5M in funding thus far. </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Blockchain will further disrupt moviemaking </strong></h3>\n<p><span style=\"font-size: 12pt;\">Further, <a href=\"https://cointelegraph.com/news/blockchain-to-disrupt-balance-of-power-in-tv-music-and-film-industry\">blockchain technology</a> may give <a href=\"https://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/\">Hollywood</a> another shock. This new concept aims to excise everyone but the ‘creatives’ from filmmaking. Through decentralized online distribution, cryptocurrency, \'smart\' contracts, and IP ownership, blockchain may signal the movie future. </span></p>\n<p><span style=\"font-size: 12pt;\">Nick Ayton of The 21 Million Project is <a href=\"https://www.forbes.com/sites/rogeraitken/2017/06/13/decentralizing-the-hollywood-machine-with-blockchain-tech-libertarian-filmmaking/#58fd3c695da1\">producing</a> a film/tv series using this concept. He claims to cut film budgets by a factor of 5 or 6 through blockchain, thus making a $30 million film for a $5 million. The 21 Million Project has committed 80% of profits to holders of 21MCoin, the token financing the film. These crowd investors will receive film royalties in perpetuity.</span></p>\n<p><span style=\"font-size: 12pt;\">It remains to be seen if blockchain becomes the new standard and if so how long it will take. But what is certain is crowdfunding is here to stay and everyone that doesn’t adapt, even <a href=\"https://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/\">Hollywood</a> fat cats, will be left behind. </span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via<a href=\"https://www.thecrowdfundinglawyers.com/\"> www.thecrowdfundinglawyers.com</a></span></p>[/et_pb_text][/et_pb_column]\n		[/et_pb_row]\n	[/et_pb_section]','Is Crowdfunding about to Revolutionize Moviemaking?','','publish','closed','closed','','is-crowdfunding-about-to-revolutionize-moviemaking','','\nhttps://www.thecrowdfundinglawyers.com/equity-crowdfunding-puts-hollywood-on-kill-list/','2019-09-01 17:11:31','2019-09-01 17:11:31','',0,'http://www.thecrowdfundinglawyers.com/?p=127',0,'post','',0),(133,1,'2017-08-15 19:32:16','2017-08-15 19:32:16','<p><span style=\"font-size: 12pt;\"><strong><u>What is Equity Crowdfunding?</u></strong></span></p>\n<p><span style=\"font-size: 12pt;\">The SEC finalized equity crowdfunding (Reg CF) regulations in May 2016. This innovative new law allows small businesses, entrepreneurs, and startups to raise capital through equity or debt sales to the “crowd” just as a public company could.</span></p>\n<p><span style=\"font-size: 12pt;\"><strong>Reg CF Basics: </strong></span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">Any business can raise up to $1.07M over a 12-month period and can set a minimum and maximum range</span></li>\n 	<li><span style=\"font-size: 12pt;\">Businesses sell their financial instruments over a FINRA-approved portal</span></li>\n 	<li><span style=\"font-size: 12pt;\">Investors are subject to limits based on income and net worth, and usually must hold the investment for one year</span></li>\n 	<li><span style=\"font-size: 12pt;\">Businesses are required to track financial instruments and file a year-end report with the SEC</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\">Any successful equity crowdfund has three components: Legal, Accounting, and Marketing. A successful raise will usually require around $20K upfront and will be subject to portal fees after a successful raise.</span></p>\n<p><span style=\"font-size: 12pt;\"><strong><u>Equity Crowdfunding so far </u></strong></span></p>\n<p><span style=\"font-size: 12pt;\">As of August 14, 2017, businesses have <a href=\"https://www.nextgencrowdfunding.com/companies/nextgen-industry-crowdfunding-dashboard-863/\">raised</a> $53,353,149 through equity crowdfunding.</span></p>\n<p><strong><u><img class=\"aligncenter wp-image-134\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CF-index-300x159.png\" alt=\"\" width=\"645\" height=\"342\" /> Credit: Crowdfund Capital Advisors </u></strong></p>\n<p><span style=\"font-size: 12pt;\">Almost 400 businesses have participated through 29 active portals. Businesses from a variety of sectors have utilized Reg CF with food and beverage, entertainment, sports, and transportation leading the way:</span><strong><u><img class=\" wp-image-135 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFindex2-300x223.png\" alt=\"\" width=\"555\" height=\"413\" /></u></strong></p>\n<p><strong><u>Credit: Crowdfund Capital Advisors </u></strong></p>\n<p><span style=\"font-size: 12pt;\">Certain portals have begun to separate themselves but it is very fluid and some outperform depending on the type of business.</span></p>\n<p><strong><u><img class=\" wp-image-136 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFcanvas-300x185.png\" alt=\"\" width=\"504\" height=\"311\" /></u></strong></p>\n<p><strong><u>Credit: Crowdfund Capital Advisors</u></strong></p>\n<p><span style=\"font-size: 12pt;\"><strong>Future Fixes:</strong></span></p>\n<p><span style=\"font-size: 12pt;\">Congress and the financial media have discussed several ‘fixes’ to <a href=\"http://www.thecrowdfundinglawyers.com/2017/06/18/is-congress-about-to-deregulate-equity-crowdfunding/\">make equity crowdfunding more dynamic</a>, including the Reg CF provisions of the Financial CHOICE Act. While no guarantee any fixes will happen, many in Congress recognize the need for improvement. Some of the most discussed modifications are:</span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">Raising the annual raise limit to $5M or $10M</span></li>\n 	<li><span style=\"font-size: 12pt;\">Removing investment limits for accredited investors</span></li>\n 	<li><span style=\"font-size: 12pt;\">Removing or lessening the accounting burden</span></li>\n 	<li><span style=\"font-size: 12pt;\">Removing or lessening the solicitation rules</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><strong><u>What Equity Crowdfunding can do for your business </u></strong></span></p>\n<p><span style=\"font-size: 12pt;\">Besides capital to help your business grow, Reg CF provides other benefits unique to this model.</span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\"><u>Broaden your investor base</u>: Unlike other funding models, Reg CF can diversify your investor base from both a financial and geographical standpoint. Portals can accept investors from anywhere in the US, giving your business a potential foothold in all 50 states.</span></li>\n 	<li><span style=\"font-size: 12pt;\"><u>Turn your customers into marketers</u>: Reg CF allows your customers to become financially invested in your business and see their investment grow as your business grows. This provides a free marketing campaign for your business with every new investor.</span></li>\n 	<li><span style=\"font-size: 12pt;\"><u>Incentivize your investors:</u> Reg CF allows you to give out perks as part of the investment. Depending on the product this could include the product itself, ‘founder’ status on your website, access to events, or anything else that may induce an investment. <u></u></span></li>\n 	<li><span style=\"font-size: 12pt;\"><u>Prove value to institutional investors:</u> A successful Reg CF raise can show larger, institutional investors your business is ready for the big money. Many larger investors are now requiring “social proof” of a company’s business model. Your business can show larger investors value and momentum and provide your business “bridge money” while larger investors evaluate your model.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><strong><u>How Jossey PLLC can help capitalize your business </u></strong></span></p>\n<p><span style=\"font-size: 12pt;\"><strong>Pre-Sale: </strong></span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">Handle all disclosures and regulatory compliance with the SEC. This includes your Form C, and any other legal issues</span></li>\n 	<li><span style=\"font-size: 12pt;\">Research the best portal for your product, make recommendation based on the best fit for your product</span></li>\n 	<li><span style=\"font-size: 12pt;\">Recommend a particular financial instrument and tailor the contract to fit your needs</span></li>\n 	<li><span style=\"font-size: 12pt;\">Review contracts, negotiate with vendors, recommend accountant and marketer</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><strong>Live Selling: </strong></span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">Free advertising and profile on my blog thecrowdfundinglawyers.com (approximately 2,000 unique visitors/month)</span></li>\n 	<li><span style=\"font-size: 12pt;\">On call for any legal, regulatory, compliance question you have usually get back with an answer in less than 24 hours.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><strong>Post Raise (additional monthly fee): </strong></span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">Act as general counsel for your business. Answer any legal, regulatory, or compliance question that may arise. Review contracts, negotiate with vendors, and give general advice on employment and other business issues.</span></li>\n 	<li><span style=\"font-size: 12pt;\">Track your instruments: track any change of ownership throughout the year as required by SEC regulations.</span></li>\n 	<li><span style=\"font-size: 12pt;\">End of year report: Handle your year-end report as required by SEC regulations.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><strong>Disclaimer</strong></span></p>\n<p><span style=\"font-size: 12pt;\">This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of Jossey PLLC. Many factors go into a successful raise including appeal of the product, competition for the product, the quality of the marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee your business will have a successful raise.</span></p>\n<p><span style=\"font-size: 12pt;\">Jossey PLLC</span></p>\n<p><span style=\"font-size: 12pt;\">(202) 779-5768</span></p>\n<p><span style=\"font-size: 12pt;\"><a href=\"mailto:paul@josseypllc.com\">paul@josseypllc.com</a></span></p>','Jossey PLLC can help capitalize your business!','','publish','open','open','','jossey-pllc-can-help-capitalize-your-business','','','2019-07-26 15:01:04','2019-07-26 15:01:04','',0,'http://www.thecrowdfundinglawyers.com/?p=133',0,'post','',0),(134,1,'2017-08-15 18:48:14','2017-08-15 18:48:14','','CF index','','inherit','open','closed','','cf-index','','','2017-08-15 18:48:14','2017-08-15 18:48:14','',133,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CF-index.png',0,'attachment','image/png',0),(135,1,'2017-08-15 18:48:38','2017-08-15 18:48:38','','CFindex2','','inherit','open','closed','','cfindex2','','','2017-08-15 18:48:38','2017-08-15 18:48:38','',133,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFindex2.png',0,'attachment','image/png',0),(136,1,'2017-08-15 18:48:57','2017-08-15 18:48:57','','CFcanvas','','inherit','open','closed','','cfcanvas','','','2019-09-01 15:50:58','2019-09-01 15:50:58','',133,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFcanvas.png',0,'attachment','image/png',0),(152,1,'2017-08-15 21:31:40','2017-08-15 21:31:40','#main-header, #et-top-navigation {\r\n    border-bottom: 1px solid #efefef;\r\n}','Divi','','publish','closed','closed','','divi','','','2020-09-28 18:42:23','2020-09-28 18:42:23','',0,'http://www.thecrowdfundinglawyers.com/2017/08/15/divi/',0,'custom_css','',0),(154,1,'2017-08-15 21:31:40','2017-08-15 21:31:40','[et_pb_section fullwidth=\"on\" background_color=\"#1f0030\"][et_pb_fullwidth_header title=\"Divi Builder\" background_layout=\"dark\" text_orientation=\"center\" scroll_down_icon_color=\"#ffffff\" scroll_down_icon_size=\"36px\" content_font_color=\"rgba(255,255,255,0.85)\" max_width=\"700px\" button_one_text=\"Join Now\" button_one_url=\"Join today\" background_overlay_color=\"rgba(40,40,48,0.8)\" title_font=\"Old Standard TT|on||on|\" title_font_size=\"62px\" title_font_size_phone=\"48px\" title_font_size_last_edited=\"on|phone\" content_font=\"Raleway||||\" content_font_size=\"20px\" custom_button_one=\"on\" button_one_text_size=\"16px\" button_one_text_color=\"#ffffff\" button_one_bg_color=\"#e85929\" button_one_border_width=\"0px\" button_one_border_radius=\"2px\" button_one_letter_spacing=\"3px\" button_one_font=\"Raleway|on||on|\" button_one_use_icon=\"off\" button_one_bg_color_hover=\"rgba(232,89,41,0.85)\" button_one_letter_spacing_hover=\"2px\" custom_css_main_element=\"padding: 6% 0 12% 0;\" custom_css_header_container=\"width: 100%;\" custom_css_button_1=\"margin-top: 40px;\" background_image=\"https://cdn.elegantthemes.com/images/tour/hummus2.jpg\" header_fullscreen=\"off\" header_scroll_down=\"off\" image_orientation=\"center\" content_orientation=\"center\" button_one_icon_placement=\"right\" custom_button_two=\"off\" button_two_letter_spacing=\"0\" button_two_icon_placement=\"right\" button_two_letter_spacing_hover=\"0\"]Divi 3.0 introduces a completely new visual interface that will forever change how you build websites. 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eu vehicula.</p>[/et_pb_blurb][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fullwidth=\"off\" specialty=\"off\" custom_padding=\"0px|||\" background_color=\"#efefe8\"][et_pb_row custom_margin=\"|||\" padding_top_1=\"10%\" background_position_1=\"top_left\" background_position_2=\"top_left\" background_repeat_1=\"no-repeat\" background_repeat_2=\"no-repeat\" background_position=\"top_left\" background_repeat=\"repeat\" background_size=\"initial\"][et_pb_column type=\"1_2\"][et_pb_blurb title=\"So simple!\" animation=\"off\" text_orientation=\"right\" header_font=\"Raleway|on||on|\" header_font_size=\"36px\" header_text_color=\"#3a3e59\" custom_css_main_element=\"max-width: none;\" background_position=\"top_left\" background_repeat=\"repeat\" background_size=\"initial\"]Lorem ipsum dolor sit amet, consectetur adipiscing elit. 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Mauris pharetra lacus nec sapien iaculis, sit amet ullamcorper sapien finibus.[/et_pb_blurb][et_pb_button button_text=\"Learn more\" button_alignment=\"right\" background_layout=\"dark\" disabled_on=\"on|on|\" custom_button=\"on\" button_text_size=\"16px\" button_text_color=\"#ffffff\" button_bg_color=\"#e85929\" button_border_width=\"0px\" button_border_radius=\"3px\" button_letter_spacing=\"3px\" button_font=\"Raleway|on||on|\" button_use_icon=\"off\" button_bg_color_hover=\"#e84712\" button_letter_spacing_hover=\"2px\" background_color=\"#7EBEC5\" /][/et_pb_column][et_pb_column type=\"1_2\"][et_pb_image src=\"https://cdn.elegantthemes.com/images/tour/jar.jpg\" align=\"center\" max_width=\"510px\" /][/et_pb_column][/et_pb_row][et_pb_row custom_margin=\"|||\" make_equal=\"on\" padding_top_2=\"14%\" background_position_1=\"top_left\" background_position_2=\"top_left\" background_repeat_1=\"no-repeat\" background_repeat_2=\"no-repeat\" background_position=\"top_left\" background_repeat=\"repeat\" background_size=\"initial\"][et_pb_column type=\"1_2\"][et_pb_image src=\"https://cdn.elegantthemes.com/images/tour/cake.jpg\" animation=\"right\" align=\"center\" max_width=\"510px\" /][/et_pb_column][et_pb_column type=\"1_2\"][et_pb_blurb title=\"So sweet!\" animation=\"off\" header_font=\"Raleway|on||on|\" header_font_size=\"36px\" header_text_color=\"#3a3e59\" custom_css_main_element=\"max-width: none;\" background_position=\"top_left\" background_repeat=\"repeat\" background_size=\"initial\"]Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse tempus sed odio non blandit. Ut varius purus eget erat ornare facilisis. Mauris pharetra lacus nec sapien iaculis, sit amet ullamcorper sapien finibus.[/et_pb_blurb][et_pb_button button_text=\"Learn more\" button_alignment=\"left\" background_layout=\"dark\" disabled_on=\"on|on|\" custom_button=\"on\" button_text_size=\"16px\" button_text_color=\"#ffffff\" button_bg_color=\"#e85929\" button_border_width=\"0px\" button_border_radius=\"2px\" button_letter_spacing=\"3px\" button_font=\"Raleway|on||on|\" button_use_icon=\"off\" button_bg_color_hover=\"#e84712\" button_letter_spacing_hover=\"2px\" background_color=\"#7EBEC5\" /][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section background_color=\"#212127\" custom_padding=\"|||\" fullwidth=\"on\"][et_pb_fullwidth_header title=\"Perfectly Diverse\" background_layout=\"dark\" text_orientation=\"center\" scroll_down_icon_color=\"#ffffff\" scroll_down_icon_size=\"36px\" content_font_color=\"rgba(255,255,255,0.72)\" button_one_text=\"Download\" background_overlay_color=\"rgba(255,255,255,0)\" title_font=\"Old Standard TT|on||on|\" title_font_size=\"62px\" title_font_size_tablet=\"62px\" title_font_size_phone=\"48px\" title_font_size_last_edited=\"on|phone\" content_font=\"Raleway||||\" content_font_size=\"20px\" content_text_color=\"#ffffff\" custom_button_one=\"on\" button_one_text_size=\"16px\" button_one_text_color=\"#ffffff\" button_one_bg_color=\"#e85929\" button_one_border_width=\"0px\" button_one_border_radius=\"2px\" button_one_letter_spacing=\"3px\" button_one_font=\"Raleway|on||on|\" button_one_use_icon=\"off\" button_one_bg_color_hover=\"rgba(232,89,41,0.85)\" button_one_letter_spacing_hover=\"2px\" custom_css_main_element=\"padding: 6% 0;\" custom_css_header_container=\"width: 100%;\" custom_css_button_1=\"margin-top: 40px;\"]<p>Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer vel mollis eros. Vestibulum in blandit massa. Nunc lorem lacus, lacinia ut lobortis id, tempor a sem. Vivamus rhoncus imperdiet quam quis vestibulum. Sed at dui orci. </p>[/et_pb_fullwidth_header][/et_pb_section][et_pb_section fullwidth=\"on\"][et_pb_fullwidth_image src=\"https://cdn.elegantthemes.com/images/tour/cheese.jpg\" animation=\"off\" /][/et_pb_section]','Divi Builder Demo','','publish','closed','closed','','divi-builder-demo','','','2017-08-15 21:31:40','2017-08-15 21:31:40','',0,'http://www.thecrowdfundinglawyers.com/et_pb_layout/divi-builder-demo/',0,'et_pb_layout','',0),(193,1,'2017-09-07 14:55:58','2017-09-07 14:55:58','[caption id=\"attachment_194\" align=\"alignleft\" width=\"242\"]<img class=\"wp-image-194 size-medium\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/09/Hurricane_Harvey_2017-242x300.jpg\" alt=\"\" width=\"242\" height=\"300\" /> Hurricane ICO[/caption]\n<p>Always hip with the times, the SEC just unleashed its own hurricane, Icarus (ICO for short). Instead of dowsing with rain, <a href=\"http://www.mythweb.com/encyc/entries/icarus.html\">Icarus</a> threatens to burn those seeking crypto gold.</p>\n<p>Icarus has caused refugee blockchain companies to scurry for shelter. Although forecasters had <a href=\"https://www.coindesk.com/what-secs-involvement-means-blockchain-distributed-ledger-bitcoin/\">predicted</a> the storm for months, would-be ICOs reeled at the inferno.</p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>DAO shattered the calm seas </strong></h3>\n<p>The SEC conceived Icarus in a summer <a href=\"http://www.sec.gov/litigation/investreport/34-81207.pdf\">report</a> on the now-infamous DAO <a href=\"https://www.crowdfundinsider.com/2017/07/119886-sec-ico-dao-announcement-decoded-explained-simple-laymans-english/\">disaster</a>. DAO was a tokenized universe allowing crowd investors to participate, direct, and profit from decentralized company projects. Hackers cracked the code and ruined the fun. A year later, the SEC claimed DAO tokens were securities subject to registration. This meant the ICO market, topping <a href=\"https://www.crowdfundinsider.com/2017/08/121240-sec-office-investor-education-advocacy-warns-potential-ico-scams-suspends-trading-several-companies/\">$2 billion</a> this year alone is on ice.</p>\n<p>Some blockchain companies are now sheltering under the SEC’s umbrella. Filecoin a red hot ICO producing upwards of <a href=\"https://www.crowdfundinsider.com/2017/08/121075-protocol-labs-files-two-form-ds-sec-regarding-enormous-filecoin-ico/\">$200 million</a> has filed <a href=\"https://www.crowdfundinsider.com/2017/08/121075-protocol-labs-files-two-form-ds-sec-regarding-enormous-filecoin-ico/\">two Reg D</a> notices; one for the presale to venture capitalists and the second for the crowdsale using a “SAFT” based on the <a href=\"http://www.thecrowdfundinglawyers.com/2017/06/27/are-safes-unsafe-for-equity-crowdfunding/\">SAFE</a> popular with <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>.</p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Defiant ICOs are facing the storm </strong></h3>\n<p>Others have ignored the warnings and will try to weather the storm. BitBounce’s Credo has <a href=\"https://www.crowdfundinsider.com/2017/07/119968-credo-ico-pushes-forward-sec-warns-sector-possible-enforcement-actions-stewart-dennis-responds-sec-announcement/\">plowed ahead</a> with ICO plans sans SEC registration claiming Credo’s token don’t meet <em>Howey</em>-test markers. If wrong it could endure years of SEC <a href=\"https://www.coindesk.com/dao-report-understanding-risk-sec-enforcement/\">haggling</a> before final resolution. The SEC has already begun to <a href=\"https://www.crowdfundinsider.com/2017/08/121240-sec-office-investor-education-advocacy-warns-potential-ico-scams-suspends-trading-several-companies/\">crack down</a> on other ICO-related concerns including First Bitcoin CapitalCorp., CIAO Group, Strategic Global, and Sunshine Capital.</p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Compliant ICOs will follow private exemptions </strong></h3>\n<p>For those wishing to avoid any future SEC-induced storms, three possibilities emerge:</p>\n\n<ul>\n 	<li><a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\"><strong>Reg D</strong></a>: Perhaps the easiest because of the small regulatory burden and lack of limits, Reg D requires no upfront SEC compliance. Companies only notify the agency after the raise. Drawbacks include a verification process for accredited investors and a lack of liquidity, as investors must hold the securities for 90 days.</li>\n 	<li><a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\"><strong>Reg CF</strong></a>: As currently configured, Reg CF is not ICO friendly because of its $1.07M one-year limit. But companies may stack Reg CF with Reg D to capture unaccredited investors. Reg CFers, however, must hold the securities even longer, one year, unless sold to accredited investors among other exceptions.</li>\n 	<li><a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\"><strong>Reg A+</strong></a>: This may be the most interesting. The “mini-IPO” option requires more upfront costs as the SEC must pre-qualify the offering and limits exist based on investor income. But once live the ceiling is $50M and even better instruments are <a href=\"https://www.crowdfundinsider.com/2017/08/120850-dont-panic-us-securities-exemptions-initial-coin-offerings/\">instantly tradeable</a> making the secondary market most like the wild-West ICO of yore (this summer).</li>\n</ul>\n<p>The SEC is still sorting the ICO market and asking for input. But the commission should forecast calm seas and a light regulatory burden if the US is to remain competitive in this emerging securities market.</p>\n<p>Russia-based platforms could gobble significant ICO infrastructure and innovation.  For instance, Waves recently <a href=\"https://www.crowdfundinsider.com/2017/06/102547-cryptocurrency-exchange-exmo-lists-waves-list-offered-coins/\">announced</a> users can deposit US dollars for token backed 100% by dollar reserves for its ICO offerings. It also <a href=\"https://www.crowdfundinsider.com/2017/07/118899-hanging-ten-deloitte-cis-partners-waves-provide-ico-blockchain-solutions/\">partnered</a> with Deloitte CIS for ICO and customized blockchain solutions.</p>\n<p>The SEC will decide whether US-based blockchain companies and investors are in for clear sailing or in the eye of the storm.</p>\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a></p>','SEC Unleashes Hurricane ICO','','publish','open','open','','sec-unleashes-hurricane-ico','','','2019-07-27 12:33:46','2019-07-27 12:33:46','',0,'http://www.thecrowdfundinglawyers.com/?p=193',0,'post','',0),(194,1,'2017-09-07 14:53:54','2017-09-07 14:53:54','','Hurricane_Harvey_2017','','inherit','open','closed','','hurricane_harvey_2017','','','2019-07-27 12:32:31','2019-07-27 12:32:31','',193,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/09/Hurricane_Harvey_2017.jpg',0,'attachment','image/jpeg',0),(201,1,'2017-10-31 19:44:03','2017-10-31 19:44:03','','Map 1','','inherit','open','closed','','map-1','','','2017-10-31 19:44:03','2017-10-31 19:44:03','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-1.png',0,'attachment','image/png',0),(202,1,'2017-10-31 19:44:22','2017-10-31 19:44:22','','Map 2','','inherit','open','closed','','map-2','','','2017-10-31 19:44:22','2017-10-31 19:44:22','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-2.png',0,'attachment','image/png',0),(203,1,'2017-10-31 19:44:42','2017-10-31 19:44:42','','Map 3','','inherit','open','closed','','map-3','','','2017-10-31 19:44:42','2017-10-31 19:44:42','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-3.png',0,'attachment','image/png',0),(217,1,'2017-11-02 17:59:06','2017-11-02 17:59:06','','Panel A-page-001 (4)','','inherit','open','closed','','panel-a-page-001-4','','','2017-11-02 17:59:06','2017-11-02 17:59:06','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Panel-A-page-001-4.jpg',0,'attachment','image/jpeg',0),(218,1,'2017-11-02 17:59:35','2017-11-02 17:59:35','','Panel A-page-002 (2)','','inherit','open','closed','','panel-a-page-002-2','','','2017-11-02 17:59:35','2017-11-02 17:59:35','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Panel-A-page-002-2.jpg',0,'attachment','image/jpeg',0),(222,1,'2017-11-02 18:30:48','2017-11-02 18:30:48','<h3 style=\"text-align: center;\"><strong><u>Equity Crowdfunding and the JOBS Act</u></strong></h3>\n<p>President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 after receiving overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller businesses raise capital through innovative rules and regulatory rollback. The SEC began implementing the law in 2013, finalizing the last title in 2016.</p>\n<p>This memo focuses on three important changes the JOBS Act made to securities law: Reg A+, Reg D 506(c), and Reg CF. It explains how each has helped businesses capitalize along with changes the US Treasury suggests to increase their value and use. Finally, this memo explains how JOSSEY PLLC helps businesses with each regulation.</p>\n<p><strong><u>Reg A+ </u></strong></p>\n\n<ul>\n 	<li>Two-tiered crowdfunding mechanism that also serves as a public-offering onramp for smaller issuers</li>\n 	<li>Tier I: Issuers can raise up to $20 million from accredited and nonaccredited investors. Issuers have relatively small upfront accounting burdens during qualification but are subject to a state-level “coordinated review process”</li>\n 	<li>Tier II: Issuers can raise up to $50 million from accredited and nonacredited investors. Issuers face higher upfront accounting burdens but raises are preempted from state-level qualification (but not notice or fees)</li>\n 	<li>Issuers can “test the waters” to gauge interest without incurring substantial accounting or legal fees</li>\n 	<li>Financial instruments are unrestricted (freely tradable) although issuers may choose to impose contractual transfer restrictions and state-level ambiguity exists</li>\n</ul>\n<p style=\"text-align: center;\"><strong><u>Reg A+ So Far </u></strong></p>\n<p>In the year after implementation (November 2016), 147 companies filed Regulation A+ offerings seeking $2.6 billion in financing. Of these, the SEC qualified approximately 81 offerings totaling $1.5 billion, 60% were Tier II.</p>\n<p>The average size of the Reg A+ offerings was around $18 million, with most issuers having previously engaged in private offerings. Despite the increase from previous Reg A rules, Reg A+ issuers sought significantly lower capital amounts than issuers using other exemptions, such as Reg D.</p>\n<p>Nonetheless, the Treasury Department recently stated, “Regulation A+ has enabled more companies to take advantage of the ‘mini IPO’ process than under the previously existing Regulation A registration exemption for small offerings. A Tier II offering may be less costly than an IPO, particularly for companies seeking relatively smaller amounts of capital.”</p>\n<p><img class=\"wp-image-217 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Panel-A-page-001-4-232x300.jpg\" alt=\"\" width=\"617\" height=\"798\" /></p>\n<p><img class=\"wp-image-218 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Panel-A-page-002-2-232x300.jpg\" alt=\"\" width=\"569\" height=\"736\" /></p>\n<p><img class=\"wp-image-201 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-1-300x128.png\" alt=\"\" width=\"773\" height=\"330\" /></p>\n<p><img class=\"wp-image-202 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-2-300x128.png\" alt=\"\" width=\"759\" height=\"324\" /></p>\n<p><strong><u>Reg D 506(c)</u></strong></p>\n\n<ul>\n 	<li>Amended Reg D 506 into ‘b’ and ‘c.’ Allows general solicitation for Reg D offerings for accredited investors only</li>\n 	<li>Financial instruments are “restricted,” investors must generally hold them for one year</li>\n 	<li>Issuer must take “reasonable steps” to verify investor status as accredited</li>\n 	<li>Exempts from broker-dealer registration websites displaying Reg D offerings if profits derive from co-investment with accredited investors</li>\n 	<li>Notice filing with SEC and states, offers take form of private-placement memorandums</li>\n</ul>\n<p style=\"text-align: center;\"><strong><u>Reg D 506(c) so far</u></strong></p>\n<p>General solicitation has had a positive yet tiny effect on the private placement market. According to SEC data, for the approximately three-year period through the end of 2016, issuers raised $107.7 billion in debt and equity offerings under Rule 506(c); during the same period Reg D 506(b) issuers raised $2.2 trillion. Thus, Rule 506(c) offerings amount to only 3% of capital raised under Rule 506.</p>\n<p>The availability of online marketplaces has had a positive effect: during the past three years, 16 online marketplaces have raised nearly $1.5 billion in over 6,000 private offerings for accredited investors.</p>\n<p><strong><u>Reg CF: </u></strong></p>\n\n<ul>\n 	<li>Issuers can raise up to $1.07M from accredited and nonaccredited investors over a 12-month period and can set a minimum and maximum range</li>\n 	<li>Financial instruments are “restricted,” investors must generally hold them for one year</li>\n 	<li>Investors are subject to limits based on income and net worth</li>\n 	<li>Issuers sell financial instruments over a FINRA-approved portal (website)</li>\n 	<li>Issuers must track financial instruments and file a year-end report with the SEC</li>\n</ul>\n<p style=\"text-align: center;\"><strong><u>Reg CF so far </u></strong></p>\n<p>In the 12-month period following effectiveness (May 2017), 335 companies filed Reg CF offerings with the SEC and there were 26 portals registered with FINRA. Of the filed crowdfunding offerings, 43% were funded, 30% of campaigns ended unsuccessfully, and the others are still ongoing. Total capital committed was in excess of $40 million. On average, each funded offering raised $282,000 and included participation from 312 investors.</p>\n<p>Businesses from a variety of sectors have utilized Reg CF with food and beverage, entertainment, sports, and transportation leading the way:</p>\n<p><img class=\"wp-image-135 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFindex2-300x223.png\" alt=\"\" width=\"737\" height=\"548\" /></p>\n<p><strong>Source: Crowdfund Capital Advisors </strong></p>\n<p>Certain portals have separated themselves but it is very fluid and some outperform depending on the type of business.</p>\n<p><img class=\"wp-image-136 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/08/CFcanvas-300x185.png\" alt=\"\" width=\"774\" height=\"477\" /></p>\n<p><strong>Source: Crowdfund Capital Advisors </strong></p>\n<p><img class=\"wp-image-203 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-3-256x300.png\" alt=\"\" width=\"749\" height=\"878\" /></p>\n<p style=\"text-align: center;\"><strong><u>Future Fixes </u></strong></p>\n<p>In October 2017, the U.S. Treasury recommended changes for each regulation to increase use and value. Congress should consider these changes in Spring 2018.</p>\n<p><strong>Reg A+ </strong></p>\n\n<ul>\n 	<li>Expand Reg A eligibility to include Exchange Act reporting companies. This would provide already public companies with a lower-cost means of raising additional capital and potentially increase awareness and interest in Reg A offerings by market participants.</li>\n 	<li>Encourage state securities regulators to promptly update their regulations to exempt secondary trading of Tier 2 securities or, alternatively, have the SEC use its authority to preempt state registration requirements.</li>\n 	<li>Increase Tier II limit to $75 million.</li>\n</ul>\n<p><strong>Reg D 506(c)</strong></p>\n\n<ul>\n 	<li>Encourage SEC, FINRA, and the states to propose a new regulatory structure for finders and other intermediaries in capital-forming transactions, “broker-dealer lite.”</li>\n 	<li>Amend the accredited investor definition to expand the eligible pool of sophisticated investors. The definition could be broadened to include any investor who is advised on the merits of making a Regulation D investment by a fiduciary, such as an SEC- or state-registered investment adviser.</li>\n 	<li>Review the Securities Act and the Investment Company Act provisions that restrict unaccredited investors from investing in a private fund containing Rule 506 offerings.</li>\n</ul>\n<p><strong>Reg CF</strong></p>\n\n<ul>\n 	<li>Allow single-purpose crowdfunding vehicles advised by a registered investment adviser, which may mitigate issuers’ concerns about having an unwieldy number of shareholders and tripping SEC registration thresholds.</li>\n 	<li>Waive investment limits for accredited investors as defined by Regulation D.</li>\n 	<li>Change limits for nonaccredited based on the greater of annual income or net worth for the 5% and 10% tests, rather than the lesser.</li>\n 	<li>Increase the limit on how much can be raised over a 12-month period from $1 million to $5 million.</li>\n</ul>\n<p style=\"text-align: center;\"><strong><u>What Equity Crowdfunding can do for your business </u></strong></p>\n<p>Besides capital to help your business grow, equity crowdfunding provides other benefits unique to this model.</p>\n\n<ul>\n 	<li><u>Broaden your investor base</u>: Unlike other funding models, equity crowdfunding can diversify your investor base from both a financial and geographic standpoint. Issuers can accept investors from anywhere in the US, giving your business a potential foothold in all 50 states.</li>\n 	<li><u>Turn your customers into marketers</u>: Equity Crowdfunding allows your customers to become investors in your business and see their investment grow as your business grows. This provides free marketing for your business with every new investor.</li>\n 	<li><u>Incentivize your investors:</u> Equity Crowdfunding allows you to reward investors with benefits thematic to your business. Depending on the product, this could include the product itself, ‘founder’ status on your website, access to events, or anything else that may induce investment. <u></u></li>\n 	<li><u>Prove value to institutional investors:</u> A successful equity crowdfund raise can show larger, institutional investors your business is ready for big money. Many larger investors are now requiring “social proof” of a company’s business model. A successful raise shows larger investors value and momentum. It can also provide your business “bridge money” while larger investors evaluate your model.</li>\n</ul>\n<p style=\"text-align: center;\"><strong><u>How JOSSEY PLLC can help capitalize your business </u></strong></p>\n<p>Any successful equity crowdfund has three components: Legal, Accounting, and Marketing. A successful raise will require upfront fees and sometimes be subject to post-raise fees and ongoing SEC compliance.</p>\n<p><strong>Pre-Sale: </strong></p>\n\n<ul>\n 	<li>Handle all disclosures and regulatory compliance with the SEC. This includes SEC Forms and qualification processes depending on the regulation</li>\n 	<li>Research the best vehicle for your business and product, make recommendations based on the best fit to maximize your raise</li>\n 	<li>Recommend a particular financial instrument and tailor the contract to fit your needs</li>\n 	<li>Review contracts, negotiate with vendors, recommend accountants and marketers</li>\n</ul>\n<p><strong>Live Selling: </strong></p>\n\n<ul>\n 	<li>Free advertising and profile on thecrowdfundinglawyers.com (thousands of unique visitors/month)</li>\n 	<li>On call for any legal, regulatory, or compliance question you have; usually get back with an answer in less than 24 hours.</li>\n</ul>\n<p><strong>Post Raise (additional monthly fee): </strong></p>\n\n<ul>\n 	<li>Act as general counsel for your business. Answer any legal, regulatory, or compliance question that may arise. Review contracts, negotiate with vendors, and give general advice on employment and other business issues.</li>\n 	<li>Track financial instrument changes in ownership throughout the year as required by certain SEC regulations.</li>\n 	<li>Handle legal review of SEC compliance reports as required by certain regulations.</li>\n</ul>\n<p style=\"text-align: center;\"><strong>Disclaimer</strong></p>\n<p>This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of JOSSEY PLLC. Many factors go into a successful raise including appeal of the product, market for the product, quality of marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee any issuer will have a successful raise.</p>\n<p>For further information and a free consultation, please contact:</p>\n<p>JOSSEY PLLC</p>\n<p>(202) 779-5768</p>\n<p><a href=\"mailto:paul@josseypllc.com\">paul@josseypllc.com</a></p>\n<p>thecrowdfundinglawyers.com</p>\n<p></p>','JOSSEY PLLC can help capitalize your business!','','publish','open','open','','jossey-pllc-can-help-capitalize-your-business-2','','','2019-07-26 14:58:00','2019-07-26 14:58:00','',0,'http://www.thecrowdfundinglawyers.com/?p=222',0,'post','',0),(227,1,'2017-11-20 16:28:02','2017-11-20 16:28:02','<p><span style=\"font-size: 12pt;\">Unlike the EPA, the Securities and Exchange Commission (SEC) lacks a <a href=\"https://www.washingtontimes.com/news/2015/oct/10/epa-spends-millions-on-military-style-weapons-repo/\">paramilitary force</a>. But one recent <a href=\"https://www.linkedin.com/pulse/sec-icos-winter-coming-john-reed-stark\">article</a> says it’s nonetheless gearing for war. The <a href=\"https://www.thecrowdfundinglawyers.com/sec-unleashes-hurricane-ico/\">SEC’s enemy</a> is initial coin offerings (ICOs), a capital-raising tool popular with startups immersed in blockchain. </span></p>\n<p><span style=\"font-size: 12pt;\">In a <a href=\"https://www.linkedin.com/pulse/sec-icos-winter-coming-john-reed-stark\">10,000-word tome</a>, consultant John Stark, a 20-year veteran of the SEC’s enforcement division, outlined the Commission’s battle plan. The opus included myriad of violent and marital imagery. “Sweeps” appears eight times, along with “counteroffensives,”  “well-stocked statutory armory,” “onslaught,”  “dragnet,” and “blood on the floor.” Is Mr. Stark is discussing a government agency or the Viet Cong?</span></p>\n<p><span style=\"font-size: 12pt;\">Various federal, state, and even international bodies are ready to fix bayonets and charge (!) with the SEC for the glory of investor protection.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC shouldn\'t be at war with companies trying to play by the rules </strong></h3>\n<p><span style=\"font-size: 12pt;\">Assuming Mr. Stark knows his stuff, the SEC’s plan raises interesting questions about federal regulators at the dawn of the third net. The agency like so much of the administrative state arose via the government-induced Great Depression.</span></p>\n<p><span style=\"font-size: 12pt;\">How much should the SEC keep people their foolhardy choices? To Mr. Stark this answer is manifest given that in the early 2000s “many investors also lost their life savings by buying into IPOs of companies encompassing little more than a sales pitch with the word “Internet” in the description.” </span></p>\n<p><span style=\"font-size: 12pt;\">But assuming this is true, those IPOs came with SEC-enforced disclosure. In America shouldn’t someone be able to risk their entire life savings on an investment that could bring gargantuan wealth? The wisdom of such risks should be the domain of adults smart enough to attain a life savings in the first place.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC should focus on \"war profiteers\"</strong></h3>\n<p><span style=\"font-size: 12pt;\">Of course, some <a href=\"https://www.thecrowdfundinglawyers.com/five-ico-donts/\">ICO’s are just frauds</a>. Indeed, the SEC recently <a href=\"https://www.financemagnates.com/cryptocurrency/news/businessman-behind-two-allegedly-fraudulent-icos-busted-sec/\">charged</a> a Brooklyn conman after allegedly lying about material facts on two <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a>. Thus far, the agency has <a href=\"http://nypost.com/2017/11/04/investors-have-poured-3-2b-into-bitcoin-like-currency/\">focused</a> on these situations.</span></p>\n<p><span style=\"font-size: 12pt;\">But to Mr. Stark and many others this isn’t enough. The government should protect investors from fully disclosed and vetted opportunities. This common bureaucratic view though has a price.</span></p>\n<p><span style=\"font-size: 12pt;\">As John H. Cochrane, Senior Fellow of the Stanford Institute for Economic Policy Research <a href=\"https://www.crowdfundinsider.com/2017/01/94340-jay-clayton-join-sec-unprecedented-need-cut-red-tape/\">states</a>:</span></p>\n<p style=\"text-align: justify; padding-left: 30px;\"><span style=\"font-size: 12pt;\">Financial regulations are often enacted with little concrete definition, to say nothing of quantification, of their costs and benefits. Regulators and economists have little understanding of causal mechanisms that may provide benefits and incur costs. Worse, they often think they know cause and effect, either wrongly or with far more precision than they actually do, and enact regulation on the basis of unverified cause-and-effect speculation. Agencies and regulations often work at cross-purposes, one promoting what the other tries to reduce—lending to poorer and riskier borrowers, for example. Regulations stay in place long after everyone sees they are not working or are counterproductive. Regulators layer on additional rules to combat the consequences of the last round, which have their own adverse consequences. </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC\'s lack of guidance makes the problem worse</strong></h3>\n<p><span style=\"font-size: 12pt;\">More than ignoring them, the SEC’s silence towards those trying to create SEC-compliant <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a> has <a href=\"http://www.thecrowdfundinglawyers.com/2017/09/07/sec-unleashes-hurricane-ico/\">worsened</a> the situation. The agency stonewalled until July when it retroactively declared the failed <a href=\"https://www.thecrowdfundinglawyers.com/sec-unleashes-hurricane-ico/\">DAO ICO</a> a security and thus subject to its ambit. </span></p>\n<p><span style=\"font-size: 12pt;\">Staff-level guidance fares no better. One seasoned securities attorney describes his recent experience:</span></p>\n<p style=\"text-align: justify; padding-left: 30px;\"><span style=\"font-size: 12pt;\">One inquiring ICO issuer was, essentially, referred by the SEC Staff to the <em>Howey</em> test and told to consult further with his securities counsel.</span></p>\n<p style=\"text-align: justify; padding-left: 30px;\"><span style=\"font-size: 12pt;\">My own recent experience, as a seasoned securities lawyer on behalf of an ICO issuer of utility tokens, did not fare much better. Yes, I prepared a detailed written analysis of my client’s “facts and circumstances,” and dutifully directed it to the SEC Staff at FinTech@sec.gov.  The Staffer who eventually responded to my inquiry was thoroughly knowledgeable. Yet in the end, he was unwilling to get into “facts and circumstances,” instead directing me to the same case law which I had already reviewed.</span></p>\n<p>(Update the SEC named Valerie Szczepanik aka \'<a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC Valerie</a>\' as its crypto czar. Under her name, the SEC has since released underwhelming <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">crypto guidance</a>).</p>\n<p><span style=\"font-size: 12pt;\">This puts everyone in the stance of wondering if they will be on the business end of SEC artillery. One lawyer recently <a href=\"https://www.crowdfundinsider.com/2017/11/124483-first-regulated-initial-coin-offering-conference-ico-2-0-summit-dives-deep-ico-legal-regulatory-economic-implications/\">described</a> being in the SEC’s crosshairs “like living in hell without dying.”</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Everyone is trying to adapt to the new world </strong></h3>\n<p><span style=\"font-size: 12pt;\">So to recap: Commissioners give off-cuff warnings. Staff won\'t say anything  publicly that would assist, and insiders direly warn of forthcoming “sweeps.” The only people who benefit here are consultants, presumably with personal relationships on the SEC’s enforcement staff, who can \"consult\" for the right price.</span></p>\n<p><span style=\"font-size: 12pt;\">But this does little for innovators and lawyers trying to keep clients from becoming casualties instead of participants in a nascent technology revolution. </span></p>\n<p><span style=\"font-size: 12pt;\">Bitcoin, the basis for<a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\"> ICO</a>, is not going away. It will continue to integrate into our everyday financial transactions and activities. As it does, <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICO</a> will keep attracting companies involved in blockchain. Congress and the SEC should provide a path for SEC-compliant <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a> that will benefit the American economy and mankind. (Update, the SEC qualified its first <a href=\"https://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/\">Reg A+ token sale</a> in July 2019.) </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Congress could reign in SEC war hawks </strong></h3>\n<p><span style=\"font-size: 12pt;\">Congress should direct the SEC to implement the following fixes for <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICO</a> companies seeking compliance:</span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\">The SEC should integrate<a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\"> ICO</a> with Reg A+ and make clear Reg A+-compliant<a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\"> ICOs</a> face no other regulatory barrier. This includes waiving onerous state-level hurdles as the Treasury recommended in a recent <a href=\"https://www.treasury.gov/press-center/press-releases/Documents/A-Financial-System-Capital-Markets-FINAL-FINAL.pdf\">report</a>: “Although federal securities laws do not impose trading restrictions on [Reg A+] Tier 2 securities, state “blue sky”  laws  may  impose  registration  requirements . . . state  securities regulators [should] promptly update their regulations to exempt secondary trading of Tier 2 securities or,  alternatively,  the  SEC  use  its  authority  to  preempt  state  registration  requirements  for  such transactions.”</span></li>\n 	<li><span style=\"font-size: 12pt;\">Raise the limit on Reg A+ Tier 2 to $100 million from $50 million over a 12-month period. This ensures <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a> can get the capital it needs while enduring a public qualification process.</span></li>\n 	<li><span style=\"font-size: 12pt;\">Reduce post raise reporting to annual instead of semi-annual. The <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICO</a> company must still report major changes but it can reduce accounting and legal fees. Given the liquidity Reg A+ provides market signals will provide investors needed information.</span></li>\n 	<li><span style=\"font-size: 12pt;\">Streamline broker dealer rules to allow finders and promoters to operate without fear of SEC enforcement. A “broker-dealer lite” could enhance visibility for new <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a> and speed secondary-market maturity.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\">These pain-free fixes could ensure a smooth transition to SEC-compliant <a href=\"https://www.thecrowdfundinglawyers.com/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">ICOs</a>. US companies can innovate in ways that improve all our lots. And only con men are ‘sent to hell without dying.’  </span></p>\n<p><span style=\"font-size: 12pt;\">In 10,000 words Mr. Stark dedicates one-half sentence to not stifling technological innovation. If his attitude is indicative of the SEC’s enforcement division and Congress discards its overseer role, technological advances will capitalize in Russia or London and even consultants will feel the burn.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a> </span></p>','The SEC mobilizes for war','','publish','open','open','','the-sec-mobilizes-for-war','','https://www.crowdfundinsider.com/2017/11/124135-sec-ico-avoiding-icu-call-leadership-action/\nhttps://www.crowdfundinsider.com/2017/01/94340-jay-clayton-join-sec-unprecedented-need-cut-red-tape/\nhttps://www.crowdfundinsider.com/2017/11/124483-first-regulated-initial-coin-offering-conference-ico-2-0-summit-dives-deep-ico-legal-regulatory-economic-implications/\nhttps://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/','2019-07-26 14:48:13','2019-07-26 14:48:13','',0,'http://www.thecrowdfundinglawyers.com/?p=227',0,'post','',0),(236,1,'2018-01-29 17:33:10','2018-01-29 17:33:10','<p><span style=\"font-size: 12pt;\">Having welcomed the new year in what must have been the coolest party in DC, the Securities and Exchange Commission (SEC) and the Commodity and Futures Trading Commission (CFTC) are back. And bitcoin busting is on the menu.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>CFTC and SEC look to reign in the new year with new regulations </strong></h3>\n<p><span style=\"font-size: 12pt;\">Last fall’s <a href=\"https://www.coindesk.com/bitcoin-price-seeks-direction-as-trading-range-narrows/\">wild ride</a> frazzled regulators. They searched their bureaucratic souls about their role protecting investors in this brave new world..</span></p>\n<p><span style=\"font-size: 12pt;\">The SEC of course has been <a href=\"http://www.thecrowdfundinglawyers.com/2017/11/20/the-sec-mobilizes-for-war/\">at this for a while.</a> Last summer it <a href=\"http://www.thecrowdfundinglawyers.com/2017/09/07/sec-unleashes-hurricane-ico/\">declared</a> the defunct DAO a security and thus under its aegis. And Chairman \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a>\" Clayton recently issued a <a href=\"https://www.sec.gov/news/speech/speech-clayton-012218\">‘stern’ warning</a> to market professionals about crypto guidance. It is now <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">preparing for war</a>.\n</span></p>\n<p><span style=\"font-size: 12pt;\">But the CFTC usually sounded more cautious. It didn’t formally <a href=\"http://www.cftc.gov/PressRoom/PressReleases/giancarlostatement010418\">recognize</a> bitcoin as a commodity until 2014. It stated US law does not <a href=\"http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/backgrounder_virtualcurrency01.pdf\">provide</a> for “direct, comprehensive Federal oversight of underlying Bitcoin or virtual currency spot markets.” Chairman J. Christopher Giancarlo <a href=\"https://www.coindesk.com/cftc-chair-cryptocurrencies-unlike-any-commodity-agency-has-seen/\">stated</a> the CFTC had “limited statutory authority” over these “largely unregulated markets.” Perhaps market professionals weren’t the only ones sternly talked to.</span></p>\n<p><span style=\"font-size: 12pt;\">In a joint <a href=\"https://www.wsj.com/articles/regulators-are-looking-at-cryptocurrency-1516836363\">op-ed</a> last week, Clayton and Giancarlo declared their agencies will pour abundant resources into regulating crypto. For the SEC that means <a href=\"https://www.thecrowdfundinglawyers.com/five-ico-donts/\">Initial Coin Offerings (ICOs)</a> are securities regardless of secondary or utility traits. (This also means the appointment of crypto czar \'<a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC Valerie</a>.\')</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>CFTC changes its tune on regulatory authority </strong></h3>\n<p><span style=\"font-size: 12pt;\">Exchanges normally “self-certify” and trade futures without CFTC approval. But the agency talked with two major exchanges before trading bitcoin futures. And implemented new rules for investment protection. By doing so, the agency declared it now has “<a href=\"http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/backgrounder_virtualcurrency01.pdf\">clear legal authority.</a>” Thus “oversight over the U.S. bitcoin futures market and access to data that can facilitate the detection and pursuit of bad actors in underlying spot markets.”</span></p>\n<p><span style=\"font-size: 12pt;\">The CFTC’s <a href=\"http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/backgrounder_virtualcurrency01.pdf\">epiphany</a> means bitcoin futures are subject to “heightened review” to produce “extensive visibility and monitoring of markets for virtual currency derivatives and underlying settlement rates.” And this includes “robust enforcement,” “asserting legal authority,” and “government-wide coordination.”</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>New technology brings old scams </strong></h3>\n<p><span style=\"font-size: 12pt;\">The CFTC clearly thinks extra scrutiny will deter scammers and ensure market fairness. It may be right. Scammers do exist and the agency is hunting pilfering confidence men.  </span></p>\n<p><span style=\"font-size: 12pt;\">Colorado millennial Dillon Dean <a href=\"https://www.coindesk.com/cftc-files-suits-against-crypto-investment-schemes-for-alleged-fraud/\">bilked</a> over $1 million from 600 investors claiming faked “expertise” in options contracts. He insisted on bitcoin payment. But he (allegedly) pocketed the money without a single trade.  </span></p>\n<p><span style=\"font-size: 12pt;\">In Las Vegas, scammers Randall Carter and Mark Gillespie <a href=\"https://www.coindesk.com/cftc-sues-crypto-scheme-big-coin-fraud/\">created</a> My Big Coin and bilked over $6 million. The duo claimed their coin was accepted alongside Master Card. But the money (allegedly) went for “personal expenses and the purchase of luxury goods.”</span></p>\n<p><span style=\"font-size: 12pt;\">Lest East Coasters think they are too sophisticated for such ruses, a New York con man proved otherwise. Patrick Kerry McDonnell, a self-anointed “cryptocurrency investment expert” <a href=\"https://www.coindesk.com/cftc-files-suits-against-crypto-investment-schemes-for-alleged-fraud/\">created</a> CabbageTech to sell tips, promising at one point 300% returns. But soon after would-be clients gave the cabbage, McDonnell shut down. He (allegedly) misappropriated the funds.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Will new CFTC rules stop scams? </strong></h3>\n<p><span style=\"font-size: 12pt;\">The interesting question is would CFTC regulation have stopped any of these (alleged) scams <em>a priori</em>? Regulators say the 1990s tech boom shows oversight is vital. But the analogy doesn’t hold. Disclosure and protections were in place then. No one claimed the SEC didn’t have jurisdiction. Pets.com and the rest followed all the rules yet lots of people gambled and lost. FOMO ruled the day as it does now.</span></p>\n<p><span style=\"font-size: 12pt;\">The SEC and CFTC must find the fine line between prosecuting fraud and overburdening innovation.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></span></p>','CFTC regulation coming to a cryptocurrency near you','','publish','open','open','','cftc-regulation-coming-to-a-cryptocurrency-near-you','','','2019-07-24 14:24:48','2019-07-24 14:24:48','',0,'http://www.thecrowdfundinglawyers.com/?p=236',0,'post','',0),(238,1,'2018-02-05 17:29:49','2018-02-05 17:29:49','<p><span style=\"font-size: 12pt;\">Initial Coin Offerings (ICOs) will revolutionize raising business capital as more companies and blockchain networks develop and prosper. Last year ICOs raised over <a href=\"https://www.coinschedule.com/stats.html\">$3.7 billion</a>. January started strong with a record $1.4 billion <a href=\"https://tokeneconomy.co/%EF%B8%8F-token-economy-34-rip-ico-c893d45d3fd6\">reported</a> from 67 ICOs.</span></p>\n<p><img class=\"aligncenter wp-image-239 size-full\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/02/ICO-Chart.jpg\" alt=\"\" width=\"800\" height=\"493\" /></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>ICOs are the future but scammers are as old as time </strong></h3>\n<p><span style=\"font-size: 12pt;\">But with any nascent fundraising tool scammers and regulators play cat and mouse. The <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> has taken an increasingly hard line, which augurs higher compliance costs per dollar raised. In a recent <a href=\"https://www.wsj.com/articles/regulators-are-looking-at-cryptocurrency-1516836363\">op-ed</a>, <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> Chairman \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a>\" Clayton stated, “The SEC is devoting a significant portion of its resources to the ICO market.” The <a href=\"http://www.thecrowdfundinglawyers.com/2017/11/20/the-sec-mobilizes-for-war/\">message is clear</a>: play by our rules or get an experience one seasoned securities lawyer <a href=\"https://www.crowdfundinsider.com/2017/11/124483-first-regulated-initial-coin-offering-conference-ico-2-0-summit-dives-deep-ico-legal-regulatory-economic-implications/\">described</a> as “living in hell without dying.”</span></p>\n<p><span style=\"font-size: 12pt;\">So in the spirit of the new paradigm facing the ICO world, here are five ways not to ICO.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Scammers should take their medicine (in prison)</strong></h3>\n<ol>\n 	<li><strong><span style=\"font-size: 12pt;\">Don’t pick a fight you can’t win</span></strong></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">Arise Bank is a Texas-sized con. Two guys claimed they were creating a digital bank of the future that would support over 700 virtual currencies. Their ICO hoped to raise over a billion dollars but didn’t bother to register with the SEC or state regulators. They also claimed to have bought a couple 100-year old FDIC insured commercial banks with the goals of solving compliance problems—an apparent outright lie. Nor did they mention one of the principal’s violent criminal history and prison record.</span></p>\n<p><span style=\"font-size: 12pt;\">When the <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> came calling Arise posted an epic <a href=\"https://www.facebook.com/arisebank/posts/357062261402937\">Facebook rant</a> about their upcoming fight with the SEC.  “Several branches of the various governments within the United States are run by cowards, liars and downright frauds . . .” In failing to register their offering, lying about their transactions, and failing to disclose previous criminal history they positioned themselves as ‘fighting for all our rights.’ The courageous duo spoke for WE THE PEOPLE (all caps!), and proudly fought the corrupt “system.” (“It’s the system, man” is a <a href=\"http://thereplawyer.blogspot.com/2015/04/larry-lessigs-corruption-copout.html\">common refrain</a> among scoundrels ranging from Harvard law professors to two-bit criminals.)</span></p>\n<p><span style=\"font-size: 12pt;\">Both state and federal regulators have <a href=\"https://www.coindesk.com/sec-files-fraud-suit-against-crypto-bank-ico/\">filed actions</a> against Arise, it won’t end well.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Regulators won\'t dismiss charges on pretexts </strong></h3>\n<ol start=\"2\">\n 	<li><strong><span style=\"font-size: 12pt;\">Disclaimers won’t help</span></strong></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">Some ICO promoters try to avoid <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> jurisdiction by imaginative labeling and disclaimers.  “Utility tokens” they claim aren’t securities but just in case lather their whitepapers with warnings about potential <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> trouble.</span></p>\n<p><span style=\"font-size: 12pt;\">Munchee was a restaurant-based app trying to raise money by selling “utility” tokens. Its <a href=\"https://s3.amazonaws.com/munchee-docs/Munchee+White+Paper+-+EN.pdf\">white paper</a> has three pages warning that even though they had analyzed Munchee for <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> issues and concluded none existed, trouble might still arrive. “Munchee Inc.\'s representations and securities assessment is not a guarantee that the <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> or any other regulatory authority will not determine the tokens to be securities subject to registration.”</span></p>\n<p><span style=\"font-size: 12pt;\">Trouble came. Noting the token’s marketing materials and audience were <a href=\"https://www.sec.gov/litigation/admin/2017/33-10445.pdf\">ICO-like</a> the <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">SEC</a> analyzed the token and concluded unsurprisingly they were securities. “Determining whether a transaction involves a security does not turn on labelling – such as characterizing an ICO as involving a “utility token” – but instead requires an assessment of ‘the economic realities underlying a transaction.’”</span></p>\n<p><span style=\"font-size: 12pt;\">Munchee quickly <a href=\"https://www.coindesk.com/sec-halts-multimillion-dollar-munchee-ico-securities-violations/\">halted the sale</a>.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Misleading investors is an ICO NO, NO</strong></h3>\n<ol start=\"3\">\n 	<li><strong><span style=\"font-size: 12pt;\">Don’t make ridiculous promises</span></strong></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">R2B coin is a token that sounds too good be true and adheres to the axiom against such offers. Hong Kong-based but selling globally, promoters incredulously <a href=\"https://www.ssb.texas.gov/sites/default/files/ENF-18-CDO-1756.pdf\">promised</a> on their now “under maintenance” <a href=\"https://r-2b.com/\">website</a> “r2b coin if you study the history, only goes one way, and that’s up. We’re only going up, we’re never going down in value.” They further <a href=\"https://www.coindesk.com/texas-takes-aim-at-overseas-ico-with-cease-and-desist/\">promised</a> to hit a certain benchmark within two years and “will be among top 10 currencies in 1–1.5 years.”</span></p>\n<p><span style=\"font-size: 12pt;\">The busy Texas State Securities Board filed an emergency cease and desist <a href=\"https://www.ssb.texas.gov/sites/default/files/ENF-18-CDO-1756.pdf\">order</a> to stop R2B from selling tokens in the Lone star State.</span></p>\n<p><span style=\"font-size: 12pt;\">Munchee earns an honorable mention for <a href=\"https://www.sec.gov/litigation/admin/2017/33-10445.pdf\">promising</a> to “ensure that MUN token is available on a number of exchanges in varying jurisdictions to ensure that this is an option for all token-holders.” This was impossible to guarantee with the acknowledged specter of SEC trouble. </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC will find you</strong></h3>\n<ol start=\"4\">\n 	<li><strong><span style=\"font-size: 12pt;\">Don’t incorporate overseas</span></strong></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">Just as Hong Kong registration couldn’t stop action against R2B, a Massachusetts man played a <a href=\"https://www.coindesk.com/massachusetts-sues-ico-operator-for-alleged-securities-violations/\">too-clever-by-half game</a> with Bay State regulators and lost.</span></p>\n<p><span style=\"font-size: 12pt;\">Kirill Bensonoff a resident of Brookline—a bedroom community near Harvard—sold “Caviar tokens” for his property-flipping scheme. To avoid U.S. regulators Bensonoff incorporated in the Cayman Islands. In reality, he ran Caviar from wealthy Brookline.</span></p>\n<p><span style=\"font-size: 12pt;\">Bensonoff’s <a href=\"https://www.coindesk.com/massachusetts-sues-ico-operator-for-alleged-securities-violations/\">plot involved</a> dodging US authorities by avoiding U.S. investors. He even blogged his strategy beforehand. But the plan failed. When regulators investigated, one tried to purchase Caviar tokens using the name of a famous cartoon character (rumored to be Mickey Mouse) and provided a false photo ID fetched from an internet search. The third-party verifier tasked with blocking U.S. residents cleared Mr. Mouse for investment in 29 minutes.</span></p>\n<p><span style=\"font-size: 12pt;\">And regardless of incorporation, regulators concluded “Respondents\' offers to sell Caviar tokens originate from within the Commonwealth of Massachusetts.”</span></p>\n<p><span style=\"font-size: 12pt;\">State regulators have <a href=\"https://www.coindesk.com/massachusetts-sues-ico-operator-for-alleged-securities-violations/\">sued</a> Bensonoff it won’t end with either champagne wishes or Caviar dreams for Mr. Bensonoff.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Paying celebrities to promote your ICO won\'t work </strong></h3>\n<ol start=\"5\">\n 	<li><strong><span style=\"font-size: 12pt;\">Celebrities don’t care about you.</span></strong></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">Three token sales secured celebrity endorsements. But when the law came knocking the stars bailed. The various promotional social-media posts had the desired effect of profile raising. Unfortunately all later turned out be scammy and stars the deleted their posts faster than they <a href=\"https://mashable.com/2018/01/27/celebrities-buy-fake-followers-twitter-responds-spam/\">buy</a> Twitter followers.</span></p>\n<p><span style=\"font-size: 12pt;\">Hotel heiress Paris Hilton <a href=\"https://www.ccn.com/paris-hilton-distances-herself-from-lydiancoin-ico-as-concerns-mount/\">tweeted</a> she was “looking forward to participating” in the LydianCoin ICO. But the coin’s originators had some untoward skeletons that burst open after the reality star’s nod. She has now deleted the post.</span></p>\n<p><span style=\"font-size: 12pt;\">Boxing superstar Floyd Mayweather <a href=\"https://www.coindesk.com/class-action-suit-targets-ico-promoted-floyd-mayweather-jr/\">stepped</a> in the ring for Centra ICO. But he threw in the towel when class action lawsuits arrived and deleted his posts.  </span></p>\n<p><span style=\"font-size: 12pt;\">And even Arise Bank managed to <a href=\"https://www.coindesk.com/sec-files-fraud-suit-against-crypto-bank-ico/\">tap</a> boxing legend Evander Holyfield to promote their fraudulent sale.</span></p>\n<p><span style=\"font-size: 12pt;\">Unsurprisingly the SEC <a href=\"https://www.sec.gov/news/public-statement/statement-potentially-unlawful-promotion-icos\">warned</a> both the public and the celebrity promoters. “Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion . . . Persons making these endorsements may also be liable for potential violations of the anti-fraud provisions of the federal securities laws . . .”</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Get legal help before delving into the ICO world </strong></h3>\n<p><span style=\"font-size: 12pt;\">For all the foolish don’ts there is one very smart do. Hire legal representation. ICOs along with the underlying technology may be the future, but the path of least resistance is filled with prosecutors and regulators looking to make their names on your creation. </span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></span></p>','Five ICO don’ts','','publish','open','open','','five-ico-donts','','','2019-07-23 14:48:00','2019-07-23 14:48:00','',0,'http://www.thecrowdfundinglawyers.com/?p=238',0,'post','',0),(239,1,'2018-02-05 17:22:25','2018-02-05 17:22:25','','ICO Chart','','inherit','open','closed','','ico-chart','','','2019-07-23 14:38:00','2019-07-23 14:38:00','',238,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/02/ICO-Chart.jpg',0,'attachment','image/jpeg',0),(244,1,'2018-02-12 17:07:45','2018-02-12 17:07:45','<p><span style=\"font-size: 12pt;\">Last week’s <a href=\"https://www.c-span.org/video/?440770-1/jay-clayton-christopher-giancarlo-testify-hearing-virtual-currencies\">hearing</a> by the Senate Banking, Housing and Urban Affairs Committee <a href=\"https://www.coindesk.com/bitcoin-crypto-us-senate-hearing-february-2018/\">frenzied</a> the <a href=\"https://www.coindesk.com/bitcoin-sets-six-day-high-9k-dips/\">always-excitable</a> ICO crowd. The legal world also joined. Legal Eagles watched closely as SEC Chair \"Shallow-End Jay\" Clayton and <a href=\"https://www.thecrowdfundinglawyers.com/cftc-regulation-coming-to-a-cryptocurrency-near-you/\">CFTC</a> Chair Chris Giancarlo testified.</span></p>\n<h3 style=\"text-align: center;\"><strong>SEC and ICO don\'t mix </strong></h3>\n<p><span style=\"font-size: 12pt;\">One takeaway was the SEC’s views Initial Coin Offerings (ICOs) as securities. As \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a>\" <a href=\"https://www.coindesk.com/sec-chief-clayton-every-ico-ive-seen-security/\">explained</a>, “From what I’ve seen ICOs are securities offerings they are interests in companies much like stocks and bonds under a new label.”</span></p>\n<p><span style=\"font-size: 12pt;\">This isn’t new. Clayton has stated so in <a href=\"https://www.wsj.com/articles/regulators-are-looking-at-cryptocurrency-1516836363\">op-eds</a>, <a href=\"https://www.sec.gov/news/speech/speech-clayton-012218\">speeches</a>, and bulletins.</span></p>\n<p><span style=\"font-size: 12pt;\">And \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End</a>\" Jay rebuked “market professionals” advising contrary. </span></p>\n<p><span style=\"font-size: 12pt;\">From the hearing:</span></p>\n<ul>\n<li><span style=\"font-size: 12pt;\">Many issuers are conducting ICOs illegally, their promoters and other participants are not following our securities laws. Some say this is because the law is not clear I do not buy that for a moment.</span></li>\n</ul>\n<ul>\n<li><span style=\"font-size: 12pt;\">A note for professionals in these markets, those who engage in semantic gymnastics or elaborate structuring exercises in an effort to avoid having a coin be a security are squarely within the crosshairs of our enforcement division.</span></li>\n</ul>\n<ul>\n<li><span style=\"font-size: 12pt;\">I don’t think the gatekeepers that we rely on to assist us in making sure our securities laws are followed have done their job.</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>\"Shallow-End Jay\": Everything that moves is a security </strong></h3>\n<p><span style=\"font-size: 12pt;\">Clayton sounded the same theme in a recent <a href=\"https://www.sec.gov/news/speech/speech-clayton-012218\">speech</a>:</span></p>\n<ul>\n<li><span style=\"font-size: 12pt;\">First, and most disturbing to me, there are ICOs where the lawyers involved appear to be, on the one hand, assisting promoters in structuring offerings of products that have many of the key features of a securities offering, but call it an \"ICO,\" which sounds pretty close to an \"IPO.\"  On the other hand, those lawyers claim the products are not securities, and the promoters proceed without compliance with the securities laws . . .</span></li>\n</ul>\n<ul>\n<li><span style=\"font-size: 12pt;\">Second are ICOs where the lawyers appear to have taken a step back from the key issues – including whether the \"coin\" is a security and whether the offering qualifies for an exemption from registration – even in circumstances where registration would likely be warranted.</span></li>\n</ul>\n<ul>\n<li><span style=\"font-size: 12pt;\">I have instructed the SEC staff to be on high alert for approaches to ICOs that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities bar.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\">His remarks led some to <a href=\"https://www.coindesk.com/bitcoin-crypto-us-senate-hearing-february-2018/\">speculate</a> the SEC has unpleasantness awaiting lawyers who gave faulty advice.</span></p>\n<h3 style=\"text-align: center;\"><strong>Fancy lawyers give bad ICO advice </strong></h3>\n<p><span style=\"font-size: 12pt;\">Lawyers advising ICOs have had two views about SEC warnings: “Meh” and “Don’t Tase Me Bro.”</span></p>\n<ol>\n<li><span style=\"font-size: 12pt;\">Meh</span></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">The SEC’s first <a href=\"http://www.thecrowdfundinglawyers.com/2017/09/07/sec-unleashes-hurricane-ico/\">declared</a> ICOs securities last July via the defunct ‘DAO’ project. DAO had been a hotly debated (and eventually hacked) ICO.</span></p>\n<p><span style=\"font-size: 12pt;\">Later that year the SEC <a href=\"https://www.sec.gov/litigation/admin/2017/33-10445.pdf\">stopped</a> the <em>Munchee</em> ICO; the company returned all funds. Both projects relied on a “utility token” defense. Essentially the tokens bought protocol access and thus escaped the SEC. In the <em>Munchee </em><a href=\"https://www.sec.gov/litigation/admin/2017/33-10445.pdf\">order</a>, the SEC addressed this argument: “even if MUN tokens had a practical use at the time of the offering, it would not preclude the token from being a security.”</span></p>\n<p><span style=\"font-size: 12pt;\">Despite the warnings, some ICOs continue to use the utility defense.  </span></p>\n<p><span style=\"font-size: 12pt;\">Singular DTV is an entertainment platform that <a href=\"https://steemit.com/singulardtv/@bloctopus/singulardtv-ico-ends-in-17-minutes\">raised</a> $7.5 million in 17 minutes in 2016. When the SEC’s DAO report emerged, it took a devil-may-care stance, welcoming the ruling but insisting it didn’t affect them.</span></p>\n<p><span style=\"font-size: 12pt;\">SNGLS tokens weren’t securities because they had utility. And anyway the company <a href=\"https://medium.com/@SingularDTV/coins-vs-tokens-why-the-sec-decision-is-a-step-in-the-right-direction-dca7bc5e2813\">proudly boasted</a> it had spent “large sums of money” on various law firms and lobbyists in Washington to “advise and educate” policy makers. SEC definitions, it proclaimed, were “antiquated.”  “Today is a new world. We in the center of the cryptosphere know it and of course the SEC knows it. We’re looking forward to a more progressive policy being instituted in the coming years by US regulators.”</span></p>\n<p><span style=\"font-size: 12pt;\">Those well-paid lawyers may care more after last week.</span></p>\n<h3 style=\"text-align: center;\"><strong>Legal advice may boomerang </strong></h3>\n<p><span style=\"font-size: 12pt;\">Lawyers for <a href=\"https://blockmason.io/\">BlockMason</a> are even more combative. They insist BlockMason sold utility tokens and distinguish them from <em>Munchee </em>through marketing strategy and network age.</span></p>\n<p><span style=\"font-size: 12pt;\">Still, Mason’s legal team acknowledges it may be in trouble. And thus it warned the SEC any attack would contravene Supreme Court precedent. “Ambiguities in the SEC <em>Munchee </em>order and the SEC Chairman’s statement leave open the theoretical possibility that they could find any and every ICO token to be a security based on the mere fact that some purchasers bought tokens expecting to profit from a rise in the token value over time. If the SEC were to take such an extreme position, it would create severe tension with Supreme Court precedent and invite a test case.”</span></p>\n<p><span style=\"font-size: 12pt;\">A test case may provide clarity from the courts but it’s high risk, high reward.</span></p>\n<h3 style=\"text-align: center;\"><strong>Marco Santori and his <span class=\"module__title__link\">Disappearing Acts</span></strong></h3>\n<p><span style=\"font-size: 12pt;\">Finally, there is the “Great Santori Disappearing Act” (Act). Marco Santori was a New York City lawyer with Cooley LLP. His firm <a href=\"https://www.cooley.com/people/marco-santori\">profile page</a> states: “I help innovators navigate financial regulations. Sometimes, we rewrite those regulations together and make them better.” (Mr. Santori has apparently recently <a href=\"https://twitter.com/msantoriESQ/status/960578880846299138\">accepted</a> a new position.)</span></p>\n<p><span style=\"font-size: 12pt;\">Mr. Santori invented a <a href=\"https://saftproject.com/static/SAFT-Project-Whitepaper.pdf\">security vehicle</a> that disappears when used. Some issuers accepted his <a href=\"https://www.coindesk.com/appcoin-law-part-2-saft-solution/\">handiwork</a>. “A few of our clients are already testing it in the wild.”</span></p>\n<p><span style=\"font-size: 12pt;\">The Act holds utility tokens are securities in presale before a useable network protocol. These <a href=\"https://www.coindesk.com/appcoin-law-part-2-saft-solution/\">SAFT</a> security tokens disappear and reappear as utility tokens once the protocol is live. “So, the SAFT framework calls for securities laws when the buyer takes on enterprise risk, and calls for the consumer protection laws when the buyer takes on product risk. That struck us, the authors of the white paper, as the right state of affairs, and we think the SAFT gets us there.”</span></p>\n<p><span style=\"font-size: 12pt;\">Critics widely panned “The Great Santori Disappearing Act” and given Clayton’s remarks, it won\'t work</span><span style=\"font-size: 12pt;\">. The Cardozo Blockchain Project at Cardozo Law School <a href=\"https://www.coindesk.com/report-warns-saft-may-increase-legal-risk-token-sales/\">critiqued</a> the Act and concluded: “Artificially dividing the overall investment scheme into multiple events does not change the fact that accredited investors purchase tokens (albeit through SAFTs) for investment purposes, and likely will not prevent a court from considering these realities when assessing whether these tokens are securities.”</span></p>\n<p><span style=\"font-size: 12pt;\">It’s unclear whether Santori’s clients in the wild will stick with the Act particularly since the magician left.</span></p>\n<h3 style=\"text-align: center;\"><strong>Smart lawyers don\'t like getting tased </strong></h3>\n<ol start=\"2\">\n<li><span style=\"font-size: 12pt;\">Don’t Tase Me Bro</span></li>\n</ol>\n<p><span style=\"font-size: 12pt;\">Some cautious lawyers have <a href=\"https://www.crowdfundinsider.com/2017/08/120279-want-legally-raise-ico/\">advised</a> ICOs to follow some combination of equity-crowdfunding titles from the JOBS Act: <a href=\"https://www.crowdfundinsider.com/2017/12/125476-indeco-launches-pre-sale-ico-startengine-reg-cf-crowdfunding-rules/\">Reg CF</a>, Reg D, and/or <a href=\"https://medium.com/@getongab/announcing-the-worlds-first-reg-a-ico-e9965c61669b\">Reg A+</a>.</span></p>\n<p><span style=\"font-size: 12pt;\">Lawyers explained this posture at an LA conference late last fall where they discussed SEC-less ICOs. According to an <a href=\"https://www.crowdfundinsider.com/2017/11/124483-first-regulated-initial-coin-offering-conference-ico-2-0-summit-dives-deep-ico-legal-regulatory-economic-implications/\">article</a>, “Concerned audience members eagerly asked the expert panelists whether there was ability for a company that did unregulated ICOs to come into the fold and now adhere to regulations.” Experts gave grim answers.    </span></p>\n<p><span style=\"font-size: 12pt;\">One reminded the crowd that firms that gave legal opinions handed their clients “lottery tickets.” “If you get sued or regulated by the SEC, CTFC, or someone else, you can then go sue your law firm for giving you bad advice. It doesn’t actually save you.” Another described an SEC investigation as “living in hell without dying.”</span></p>\n<p><span style=\"font-size: 12pt;\">How hard the SEC pursues lawyers who badly advised ICO clients is unknown. It’s also possible utility tokens do exist somewhere beyond the SEC’s reach.</span></p>\n<p><span style=\"font-size: 12pt;\">But after last year’s wild ride, most lawyers will <a href=\"https://www.coindesk.com/goodbye-icos-hello-taos-tokens-will-change-2018/\">avoid</a> the taser this year.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via<a href=\"https://www.thecrowdfundinglawyers.com/\"> www.thecrowdfundinglawyers.com</a></span></p>\n\n<!-- wp:tadv/classic-paragraph /-->','From ‘Meh’ to ‘Don’t Tase Me Bro,’ ICO legal advice','','publish','open','open','','from-meh-to-dont-tase-me-bro-ico-legal-advice','','','2019-07-22 13:45:35','2019-07-22 13:45:35','',0,'http://www.thecrowdfundinglawyers.com/?p=244',0,'post','',0),(247,1,'2018-04-05 15:07:47','2018-04-05 15:07:47','<p><a href=\"https://business.facebook.com/pixelbynetstairs/videos/1864856263546248/\">Click this Link to see a webinar where I discuss raising capital through the JOBS Act of 2012. Reg A+, Reg D, and Reg CF!!</a></p>','Talking About the JOBS Act','','publish','open','open','','talking-about-the-jobs-act','','','2019-07-01 23:37:41','2019-07-01 23:37:41','',0,'http://www.thecrowdfundinglawyers.com/?p=247',0,'post','',0),(252,1,'2018-04-27 17:24:40','2018-04-27 17:24:40','https://youtu.be/ahs6MGsskdg','Talking Reg CF Equity Crowdfunding at The Heritage Foundation','','publish','open','open','','talking-reg-cf-equity-crowdfunding-at-the-heritage-foundation','','','2019-07-01 23:35:00','2019-07-01 23:35:00','',0,'http://www.thecrowdfundinglawyers.com/?p=252',0,'post','',0),(255,1,'2018-05-01 19:15:53','2018-05-01 19:15:53','','Biz Card front','','inherit','open','closed','','biz-card-front','','','2019-07-20 19:23:44','2019-07-20 19:23:44','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Biz-Card-front.jpg',0,'attachment','image/jpeg',0),(256,1,'2018-05-01 19:17:45','2018-05-01 19:17:45','','Biz Card back','','inherit','open','closed','','biz-card-back','','','2018-05-01 19:17:45','2018-05-01 19:17:45','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Biz-Card-back.jpg',0,'attachment','image/jpeg',0),(268,1,'2018-05-01 19:52:10','2018-05-01 19:52:10','<p><span style=\"font-size: 12pt;\">I wasn\'t planning on doing this but LinkedIn reminded me today that I have been at this entrepreneur thing for two years now. It was completely new to me when I started. Here are some things I\'ve learned for anyone else in my shoes or thinking about going out on their own. See here for reflections on<a href=\"https://www.thecrowdfundinglawyers.com/entering-year-four-as-an-entrepreneur/\"> Year Three as an entrepreneur</a>.&nbsp;</span></p>\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Running a business isn\'t easy&nbsp;</strong></h3>\n<ul>\n<li><span style=\"font-size: 12pt;\"><strong>It’s hard</strong>: Everyone probably already knows running your own business is no vacation but it\'s amazing to me the number of things I have to think about. Taxes, licenses, marketing, communications, time management, flexibility, contract exposure, malpractice insurance, and on and on.The flip side is difficulty is a product of expectations. If you expect things to be hard they will be and if you set your goals based on your plan and not on specific numbers you can see your success more clearly. Being an entrepreneur will make you better at everything else you do.&nbsp;&nbsp;</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Your fees reflect your value</strong></h3>\n<ul>\n<li><span style=\"font-size: 12pt;\"><strong>Get the money up front</strong>: In my haste to make connections and please potential clients I have offered services for free multiple times. This has worked for some people, it hasn\'t for me. If you offer your services for free you\'re telling people your value. And they will come to expect it every time. The promises on the horizon never come. You\'ll be the donkey chasing the carrot. If people aren\'t willing to pay you it tells you what they really think about your value anyway. Get the money or move on.</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Believe in your product and be enthusiastic about it&nbsp;</strong></h3>\n<ul>\n<li><span style=\"font-size: 12pt;\"><strong>You’re a salesman all the time</strong>: People are worried about themselves they don’t care what you’re doing even if you’ve got something that can really help them. The burden of proof is always on you. This isn’t just about demeanor but it’s about constantly thinking about how to align your economic incentives with your clients, associates, and partners. Economics explains all behavior. Find the right incentive point and the product sells itself.</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Your future as an entrepreneur&nbsp;is a choice</strong>&nbsp;</h3>\n<ul>\n<li><span style=\"font-size: 12pt;\"><strong>Believe in yourself</strong>. Yes it’s cliché, maybe even pabulum. But if you don’t believe in yourself and your business model no one else will either. Henry Ford went broke five times; Abraham Lincoln lost nearly every election he ran in. With all the setbacks, my first raise is about to go live. It has been over a year in the making but it’s almost here and hopefully it will be springboard to many more.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\">And when all else fails, buy yourself some snazzy new business cards and keep going!&nbsp; :roll:&nbsp;</span></p>\n<p><img class=\"alignnone wp-image-255\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Biz-Card-front-300x225.jpg\" alt=\"\" width=\"285\" height=\"214\"><img class=\"alignnone wp-image-256\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Biz-Card-back-300x225.jpg\" alt=\"\" width=\"285\" height=\"214\"></p>\n\n<!-- wp:tadv/classic-paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a> </p>\n<!-- /wp:tadv/classic-paragraph -->','Finishing Up Year Two as an Entrepreneur','','publish','open','open','','finishing-up-year-two-as-an-entrepreneur','','','2019-07-26 14:55:21','2019-07-26 14:55:21','',0,'http://www.thecrowdfundinglawyers.com/?p=268',0,'post','',0),(274,1,'2018-05-03 15:35:42','2018-05-03 15:35:42','<!-- wp:divi/placeholder -->\n\n\n<p>[et_pb_section bb_built=\"1\"][et_pb_row][et_pb_column type=\"4_4\"][et_pb_text]</p>\r\n<p><span style=\"font-size: 12pt;\">In a Twitter Crowdfund Chat. The Securities and Exchange Commission\'s Office of Small Business Policy released a chart showing an overview of the crowdfunding exemptions that allow small businesses to raise capital without going public. <img class=\" wp-image-275 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/SEC-Securities-Exemptions-Graphic-May-2018-300x228.jpg\" alt=\"\" width=\"605\" height=\"460\" /> </span></p>\r\n<p>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]</p>\n\n\n<!-- /wp:divi/placeholder -->','SEC Releases Handy Chart on Crowdfunding Exemptions','','publish','open','open','','sec-releases-handy-chart-on-crowdfunding-exemptions','','','2019-07-24 16:36:01','2019-07-24 16:36:01','',0,'http://www.thecrowdfundinglawyers.com/?p=274',0,'post','',0),(275,1,'2018-05-03 15:33:45','2018-05-03 15:33:45','','SEC-Securities-Exemptions-Graphic-May-2018','','inherit','open','closed','','sec-securities-exemptions-graphic-may-2018','','','2018-05-03 15:33:45','2018-05-03 15:33:45','',274,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/SEC-Securities-Exemptions-Graphic-May-2018.jpg',0,'attachment','image/jpeg',0),(282,1,'2018-05-12 19:00:32','2018-05-12 19:00:32','http://www.thecrowdfundinglawyers.com/wp-content/uploads/2016/07/cropped-animated_crowd.gif','cropped-animated_crowd.gif','','inherit','open','closed','','cropped-animated_crowd-gif','','','2018-05-12 19:00:32','2018-05-12 19:00:32','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2016/07/cropped-animated_crowd.gif',0,'attachment','image/gif',0),(291,1,'2018-05-16 15:58:49','2018-05-16 15:58:49','<p><span style=\"font-size: 12pt;\"><a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>, turns two today. In 2012, President Obama gave the law \"game changer\" status and a ceremony in the Rose Garden. Six years hence, forecasts aren\'t so rosy. Equity crowdfunding is changing the game despite SEC hostility. </span></p>\n\n\n[caption id=\"attachment_294\" align=\"alignleft\" width=\"300\"]<img class=\"size-medium wp-image-294\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Rosegarden-300x150.png\" alt=\"\" width=\"300\" height=\"150\" /> Game Changer?[/caption]\n<p><span style=\"font-size: 12pt;\">Industry professionals have lamented the <a href=\"http://www.thecrowdfundinglawyers.com/2017/06/18/is-congress-about-to-deregulate-equity-crowdfunding/\">SEC\'s hostility</a> to <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a>. As Edward Knight, Executive Vice President and General Counsel of NASDAQ, stated in a March 2017 congressional <a href=\"https://www.youtube.com/watch?v=ZK7vePar4WI\">hearing</a>:</span></p>\n\n<blockquote>\n<p><span style=\"font-size: 12pt;\">From the outset the SEC’s view of [equity crowdfunding] was they were not for this they and made it, shall I say, needlessly complicated and did not approach it except as this this was something where the public is going to get harmed and we need to narrow it as m In uch as possible.</span></p>\n</blockquote>\n<p><span style=\"font-size: 12pt;\"><a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> languished for four years while the “<a href=\"https://www.crowdfundinsider.com/2016/06/86664-memo-to-congress-title-iii-crowdfunding-needs-a-fixin-now/\">hand wringing</a>” Commission delayed and deferred.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Equity Crowdfunding growth comes in spite of \"Shallow-End Jay\" and the SEC</strong></h3>\n<p><span style=\"font-size: 12pt;\">Despite this hostility, <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a> is slowly blooming and with some fixes, it can take off.</span></p>\n<p><span style=\"font-size: 12pt;\">According to the Small Business Administration, Year One <a href=\"https://www.sba.gov/sites/default/files/advocacy/Crowdfunding_Issue_Brief_2018.pdf\">saw</a> 326 equity crowdfunds. These raises totaled more than $30 million. By this January, that number had surpassed <a href=\"https://www.crowdfundinsider.com/2018/01/127592-report-reg-cf-offerings-top-100-million-capital-raised/\">$100M</a> with the average successful raise hitting $289K and the median $170K.</span></p>\n<p><span style=\"font-size: 12pt;\">But overall the numbers fall short of forecasts. The SEC is trying to protect the little-guy investor. But it has stolen millions in capital from small and medium-size businesses while denying wealth creation for smaller investors.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Everyone knows the problems with equity crowdfunding </strong></h3>\n<p><span style=\"font-size: 12pt;\">Everyone knows the culprit: </span></p>\n\n<ul>\n 	<li data-tadv-p=\"keep\"><span style=\"font-size: 12pt;\"><strong><a href=\"https://www.sba.gov/sites/default/files/advocacy/Crowdfunding_Issue_Brief_2018.pdf\">SBA</a></strong>:  “[G]iven the relatively limited reliance on equity crowdfunding in the first year, the SEC may want to consider whether certain aspects of the regulatory scheme are too complex or costly for small businesses to navigate and comply with.”</span></li>\n 	<li data-tadv-p=\"keep\"><span style=\"font-size: 12pt;\"><strong><a href=\"https://www.treasury.gov/press-center/press-releases/Documents/A-Financial-System-Capital-Markets-FINAL-FINAL.pdf\">Treasury Department</a></strong>: “However, in conversations with Treasury staff, market participants have expressed concerns about the cost and complexity of using crowdfunding compared to private placement offerings. Participants cited regulatory constraints, such as disclosure requirements and issuance costs, as well as structural factors, such as the challenges associated with having a large number of investors, as potentially limiting the use of this capital raising method.</span></li>\n 	<li data-tadv-p=\"keep\"><span style=\"font-size: 12pt;\"><strong><a href=\"https://www.crowdfundinsider.com/2018/05/133168-crowdfunding-platform-wefunder-launches-results-page-compares-investment-results-to-vcs-comes-out-on-top/\">Crowdfund Insider (media)</a></strong>: “The rule makers have undermined Reg CF with excessive rules and compliance mandates thus pushing away some issuers from allowing a wider audience take part in scalable businesses.\"</span></li>\n</ul>\n[caption id=\"attachment_293\" align=\"alignleft\" width=\"300\"]<img class=\"size-medium wp-image-293\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Jay-Clayton-300x244.jpg\" alt=\"\" width=\"300\" height=\"244\" /> SEC Chairman Jay Clayton[/caption]\n<p><span style=\"font-size: 12pt;\">Let’s fix Reg CF Chairman \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay\"</a> Clayton, here’s how.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Solutions to equity crowdfunding can happen at the SEC level</strong></h3>\n<p><span style=\"font-size: 12pt;\"><strong><u>Solicitation Rules</u></strong>: Although often overlooked, the solicitation rules are terrible. <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> issuers can’t discuss the “terms” of the issue—the amount of securities offered, the nature of the securities, the price, and the closing date of the offering period—unless through a portal. The SEC <a href=\"https://www.seedinvest.com/blog/crowdfunding/regulation-crowdfunding-rules\">claims</a> it wants investors in the portals. But the effect is an <a href=\"https://www.crowdfundinsider.com/2017/05/100431-wefunder-publishes-open-letter-sec-six-recommendations-improve-regulation-crowdfunding/\">absurd burden</a> on issuers. Some lawyers <a href=\"https://www.crowdfundinsider.com/2017/05/100431-wefunder-publishes-open-letter-sec-six-recommendations-improve-regulation-crowdfunding/\">discourage</a> talking about the raise at all outside the portal. This makes no sense. Indeed, investors must purchase the securities through the portal, which shows them to all germane risks. Moreover, rules disallowing pre-launch publicity impede awareness of offers. And it ignores an <a href=\"https://www.crowdfundinsider.com/2016/06/86664-memo-to-congress-title-iii-crowdfunding-needs-a-fixin-now/\">avalanche of data</a> on what’s needed to make them successful. </span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>Investor restrictions harms those they are supposed to help </strong></h3>\n<p><span style=\"font-size: 12pt;\"><strong><u>Investment Limits</u></strong>: The overall and individual investment limits also harm <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>. The $1M 12-month limit keeps larger institutional investors and ‘smart money’ sidelined. Higher limits could dovetail with complimentary raises either during or after an <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfund</a> like venture capital, investment banks, or private placement. Although few issuers hit the $1M limit, the possibility of bigger raises would incentivize bigger players to invest with smaller investors. Further, individual limits on accredited investors force them into <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>s. There they secure more favorable terms. According to portal giant <a href=\"https://www.crowdfundinsider.com/2017/05/100431-wefunder-publishes-open-letter-sec-six-recommendations-improve-regulation-crowdfunding/\">Wefunder</a>, “[W]e believe that retail investors are better protected when accredited investors invest side by side on the same terms, under the same exemption . . . [Currently] investors are often forced to directly contact the issuer and negotiate a separate Regulation D 506(c) deal.”</span></p>\n<p><span style=\"font-size: 12pt;\"><strong><u>Accounting</u></strong>: GAAP accounting demands also hinder <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>. This burdens startups already taking a risk with extra costs. Entrepreneurs don’t have compliance divisions for the myriad regulations thrown at them.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC must reshape its outlook </strong></h3>\n<p><span style=\"font-size: 12pt;\">The SEC is <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">stuck in the 20th century</a>. The world is passing it by at ever-faster revolutions as George Gilder explained in \'<a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Life after Google</a>.\' Its well-meaning concern for investors harms the very people it’s trying to shield. It also weakens our competitiveness against countries with advanced alternative capital-raising schemes <a href=\"https://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/\">especially the UK</a>.  When Chairman \"<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a>\" Clayton launched his <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">jihad against ICOs</a> in January, capital raises fell drastically while <a href=\"https://tokeneconomy.co/47-telegram-and-the-path-towards-the-end-of-icos-31bc13de02a4\">limiting</a> exciting deals to accredited investors.</span></p>\n\n\n[caption id=\"attachment_292\" align=\"aligncenter\" width=\"573\"]<img class=\" wp-image-292\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/ICO-Chart-II-300x169.jpg\" alt=\"\" width=\"573\" height=\"323\" /> Source: Token Data[/caption]\n<p><span style=\"font-size: 12pt;\">Of course some ICOs are <a href=\"http://www.thecrowdfundinglawyers.com/2018/02/05/five-ico-donts/\">scams</a>, and the <a href=\"https://www.thecrowdfundinglawyers.com/five-ico-donts/\">SEC should prosecute fraudsters</a>. But lots are just trying to follow rules the SEC refuses to clarify. (<a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik</a> is now in a major legal fight with the SEC). Now many ICOs are launching elsewhere. Some of Mr. Clayton’s colleagues understand this.</span></p>\n\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>CryptoMom sees the issues \"Shallow-End Jay\" does not </strong></h3>\n<p><span style=\"font-size: 12pt;\">Commissioner Hester Peirce aka <a href=\"https://www.thecrowdfundinglawyers.com/cryptomom-versus-the-machine/\">CryptoMom</a> recently seemed to <a href=\"https://www.crowdfundinsider.com/2018/05/133146-sec-commissioner-hester-peirce-says-change-is-hard-for-regulators-cryptocurrency-innovation-may-be-good/\">rebuke</a> Clayton’s ICO jihad while making a larger point about what the SEC shouldn’t be doing in their cop role:</span></p>\n\n<blockquote>\n<p style=\"text-align: justify; padding-left: 30px;\"><span style=\"font-size: 12pt;\">The best path forward is for regulators to approach ICOs and tokens with intense curiosity. We must put in the effort to learn about these new technologies and employ the staff necessary to support our understanding.  It is unfortunate that, to date, most of the communications from the SEC on the topic have come from our Division of Enforcement . . . we must be careful not to let our lack of familiarity with new technology breed anxiety and therefore bad regulation.  There is a risk, when something truly innovative comes along, that regulators will focus only on the harms the innovation may bring and miss entirely the opportunity it presents to improve people’s lives.  </span></p>\n</blockquote>\n<h3 style=\"text-align: center;\" data-tadv-p=\"keep\"><strong>The SEC should start by doing no harm </strong></h3>\n<p><span style=\"font-size: 12pt;\"><a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">Equity crowdfunding</a> has the potential to revolutionize capital formation. It can bring wealth and prosperity to businesses and even whole communities that languish under the current staid system. But it will only work when the SEC lightens the rules and lets the law work as intended.</span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://www.twitter.com/TheCrowdFundLaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></span></p>','Mr. Clayton Tear Down This Law (or at least the parts that suck)','','publish','open','open','','mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck','','\nhttps://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/','2019-07-20 15:27:28','2019-07-20 15:27:28','',0,'http://www.thecrowdfundinglawyers.com/?p=291',0,'post','',0),(292,1,'2018-05-16 15:51:59','2018-05-16 15:51:59','','ICO Chart II','Source: Token Data','inherit','open','closed','','ico-chart-ii','','','2018-05-16 15:56:00','2018-05-16 15:56:00','',291,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/ICO-Chart-II.jpg',0,'attachment','image/jpeg',0),(293,1,'2018-05-16 15:52:24','2018-05-16 15:52:24','','Jay Clayton','SEC Chairman Jay Clayton','inherit','open','closed','','jay-clayton','','','2018-05-16 15:54:29','2018-05-16 15:54:29','',291,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Jay-Clayton.jpg',0,'attachment','image/jpeg',0),(294,1,'2018-05-16 15:52:48','2018-05-16 15:52:48','','Rosegarden','Game Changer?','inherit','open','closed','','rosegarden','','','2018-05-16 15:53:15','2018-05-16 15:53:15','',291,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/05/Rosegarden.png',0,'attachment','image/png',0),(297,1,'2018-05-21 17:06:02','2018-05-21 17:06:02','<p><span style=\"font-size: 12pt;\">Elliot Begoun, principal of The Intertwine Group, focuses on branding strategies for food and beverage companies.  He recently wrote a post titled ‘5 ways a crowdfunding campaign can help your startup.’ You can read it <a href=\"http://www.newhope.com/finance-and-fundraising/5-ways-crowdfunding-campaign-could-help-your-startup?NL=NP-04&amp;Issue=NP-04_20180514_NP-04_829&amp;sfvc4enews=42&amp;cl=article_1&amp;utm_rid=CNHNM000000152260&amp;utm_campaign=25713&amp;utm_medium=email\">here</a>.</span></p>\n<p><span style=\"font-size: 12pt;\">As a lawyer focusing on equity crowdfunding and Title III of the JOBS Act (<a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>), much of what Mr. Begoun wrote sounded familiar. In the 100 or so times I’ve presented equity crowdfunding to potential clients I’ve stressed the ancillary benefits. These are not gained from traditional funding like bank loans or venture capital.</span></p>\n<p><span style=\"font-size: 12pt;\">I list Mr. Begoun’s five benefits with my own comments. See here for a dive into if <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding is right for your company</a>.  </span></p>\n\n<ul>\n 	<li><span style=\"font-size: 12pt;\"><strong>Cash</strong>: This of course is not ancillary; it is the main purpose behind any kind of crowdfunding. Equity crowdfunders can raise up to $1.07 million dollars in a twelve-month period. Most don’t hit this but the overall rate is growing as awareness builds. Reg CF recently turned two and the future looks bright especially with some rule changes (<a href=\"http://www.thecrowdfundinglawyers.com/2018/05/16/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">here’s looking at you Congress</a>).</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Startups need market validation as much as capital</strong></h3>\n<ul>\n 	<li><span style=\"font-size: 12pt;\"><strong>Product/Market fit</strong>: Presenting your new company to world can be scary but it’s also as Mr. Begoun states an “open source focus group.” Is your product ready for prime time? Will you be able to outgun your competitors? Reg CF forces a business to confront these questions in legal documents and while pitching to potential investors through FINRA-regulated portals. Receiving crowd-sourced feedback can be invaluable to fine tuning your plan and messaging.</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Startups get multi-level marketing </strong></h3>\n<ul>\n 	<li><span style=\"font-size: 12pt;\"><strong>Crowdmarketing</strong>: This is one of the most overlooked and important aspects of crowdfunding. If done correctly your equity crowdfunding campaign will organically market you, not only your raise but also your product/business. When you align your investors’ economic interest with your own you receive the benefit of their endorsement on their social media properties, which snowballs into a <a href=\"https://medium.com/evergreen-business-weekly/the-power-of-network-effects-why-they-make-such-valuable-companies-and-how-to-harness-them-5d3fbc3659f8\">network effect</a>.</span></li>\n 	<li><span style=\"font-size: 12pt;\"><strong>Evangelists</strong>: I usually say ‘ambassadors’ but whatever you call them they are your online promoters. If you accumulate enough people who believe in you and what you’re doing you get an “army of your champions.” Where do you find them? Start with your client/customer list, previous investors, and others who believe in you.</span></li>\n</ul>\n<h3 style=\"text-align: center;\"><strong>Startups can prove management prowess </strong></h3>\n<ul>\n 	<li><span style=\"font-size: 12pt;\"><strong>Vetting</strong>: As Begoun writes “Running a successful campaign says a lot about you as a founder and your product.” This includes your ability prioritize, manage, multitask, delegate, select successful vendors, build brand awareness. Who is looking at you and evaluating this? Not only your Reg CF investors, but larger institutional investors, competitors, and potential partners. If you eventually decide to go the investment bank/venture capital route, a successful equity crowdfund raise seats you more comfortably at the table with stronger negotiating power.</span></li>\n</ul>\n<p><span style=\"font-size: 12pt;\"><a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">Equity crowdfunding</a> is not a panacea. Startups still struggle with fundraising. And simply throwing a page on the internet guarantees you nothing. But<a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\"> Reg CF</a> puts more tools in the startup capitalization toolbox with lots extra benefits unavailable even a few years ago.</span></p>\n<p><span style=\"font-size: 12pt;\">Thinking about it? Want to learn more? Email me at <a href=\"mailto:info@thecrowdfundinglawyers.com\">info@thecrowdfundinglawyers.com</a></span></p>\n<p><span style=\"font-size: 12pt;\">By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a></span></p>','Equity Crowdfunding for Startups','','publish','open','open','','equity-crowdfunding-for-startups','','','2019-07-20 13:44:17','2019-07-20 13:44:17','',0,'http://www.thecrowdfundinglawyers.com/?p=297',0,'post','',0),(300,1,'2018-06-15 16:00:47','2018-06-15 16:00:47','Jossey PLLC is happy to announce Streaming TV out of Atlanta, Georgia has launched their crowdfunding campaign with our help!! <img class=\"wp-image-303 aligncenter\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/06/navBar_titleImage@iphone6plus-300x74.png\" alt=\"\" width=\"511\" height=\"126\">\n\nCheck them out here! https://us.trucrowd.com/equity/offer-summary/906-Streaming-Television-Inc-Georgia-30303','Streaming TV is live!!','','publish','open','open','','streaming-tv-is-live','','','2019-06-04 02:04:46','2019-06-04 02:04:46','',0,'http://www.thecrowdfundinglawyers.com/?p=300',0,'post','',0),(303,1,'2018-06-15 15:59:22','2018-06-15 15:59:22','','navBar_titleImage@iphone6plus','','inherit','open','closed','','navbar_titleimageiphone6plus','','','2018-06-15 15:59:22','2018-06-15 15:59:22','',300,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2018/06/navBar_titleImage@iphone6plus.png',0,'attachment','image/png',0),(306,1,'2018-12-22 02:20:54','2018-12-22 02:20:54','<!-- wp:paragraph -->\n<p>Who says the best time to start an<a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\"> equity crowdfunding </a>raise isn\'t the weekend before Christmas? Trustwire, is live on WeFunder. In addition, Trustwire encrypts and shares files securely. And the company is poised to compete with Google Drive and Dropbox. Learn more here!   <a href=\"https://wefunder.com/trustwire\">https://wefunder.com/trustwire</a> Update, <a href=\"https://www.thecrowdfundinglawyers.com/trustwire-tops-100k-in-crowdfunding-campaign/\">Trustwire tops $100k</a>! </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=-IyZtwDuKug\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://www.youtube.com/watch?v=-IyZtwDuKug\n</div></figure>\n<!-- /wp:core-embed/youtube -->','Trustwire is live on WeFunder!!','','publish','open','open','','trustwire-is-live-on-wefunder','','','2019-07-19 16:31:13','2019-07-19 16:31:13','',0,'http://www.thecrowdfundinglawyers.com/?p=306',0,'post','',0),(315,1,'2019-01-08 15:06:42','2019-01-08 15:06:42','<!-- wp:paragraph -->\n<p>One place Washington lawmakers agree is the new token world. But that hasn\'t filtered to the regulators. Unfortunately, token regulations are befuddling. But the Token Taxonomy Act (Act) (<a rel=\"noreferrer noopener\" href=\"https://www.scribd.com/document/396096529/Token-Taxonomy-Act-of-2018\" target=\"_blank\">H.R. 7356</a>) introduced by Reps<strong>. </strong>Warren Davidson (R-OH) and Darren Soto (D-FL) tries to sort the mess. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Act amends the Securities Act of 1933 and the Securities Exchange Act of 1934. It removes certain digital assets from  the SEC\'s ambit. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Congress must create a utility token asset class </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Act adds “digital token” to the federal securities laws.  Importantly, these tokens would escape the <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">SEC’s enforcement-first</a> policy. And avoid soul-destroying, money-sucking investigations. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.congress.gov/bill/115th-congress/house-bill/7356/text\">Digital\ntokens</a> would be a digital asset that is created: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>&nbsp;(i) in response to the verification or\ncollection of proposed transactions; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(ii) pursuant to rules for the digital unit’s creation and supply that cannot be altered by a single person or group of persons under common control; or</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(iii) as an initial allocation of digital units that will otherwise be created in accordance with clause (i) or (ii);</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>New classification would not be securities&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>And;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(C) is capable of being traded or transferred between persons without an intermediate custodian; and</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(D) is not a representation of a financial interest in a company, including an ownership or debt interest or revenue share.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Thus the Act excludes security tokens representing ownership or a claim on company assets. The SEC would still rule that purview. But the new \"digital tokens\" according to the Blockchain Association the Act <a href=\"https://medium.com/@BlockchainAssoc/new-bipartisan-legislation-defines-digital-tokens-paves-way-for-pro-innovation-policy-4833cbfca600\">would</a> “promote the open exchange of information and value and decrease the potential for fraud.” It’s a good first step, but it leaves other questions. For instance, it does not address important issues of post-release decentralization. Indeed, this is part of<a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\"> Kik\'s</a> argument in its SEC dispute.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The House and Senate would have to agree. And the president must sign before the Act became law. Even then, SEC rule-making could limit benefits. Because heretofore the commission has proved inflexible in its approach to the coming <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">token-economy revolution</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>SEC guidance on digital tokens has lacked clarity&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Indeed, over the past two years, the <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">SEC has been a model of obfuscation</a>. Its policy updates appear from nowhere at conferences and media hits, sometimes by <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">division-head careerists</a>. And this uncertainty is harming the industry by playing Russian roulette with the US economy. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As one writer <a href=\"https://www.coindesk.com/7-legal-questions-that-will-define-blockchain-in-2019\">stated</a>:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><em>The SEC delivered some of its most important regulatory guidance of 2018 through conferences, interviews and personal statements. With each pronouncement, the SEC representative stated their views did not necessarily reflect the views of the SEC.</em></p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><em>Looking back at the greatest hits, from “</em><a href=\"https://www.coindesk.com/sec-chief-clayton-every-ico-ive-seen-security\"><em>Every ICO I’ve seen is a security</em></a><em>” to “</em><a rel=\"noreferrer noopener\" href=\"https://www.sec.gov/news/speech/speech-hinman-061418\" target=\"_blank\"><em>If the network on which the token or coin is to function is sufficiently decentralized … the assets may not represent an investment contract</em></a><em>” and “</em><a rel=\"noreferrer noopener\" href=\"https://www.sec.gov/news/speech/speech-hinman-061418\" target=\"_blank\"><em>current offers and sales of ether are not securities transactions</em></a><em>,” the SEC has not officially confirmed any of these statements and has instead clarified that staff views are non-binding and create no enforceable legal rights.</em></p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Bill Hinman, head of \'Corp Fin\' <a href=\"https://www.sec.gov/news/speech/speech-hinman-061418\">answered</a>—to great relief—he did not consider Ether a security at a conference. Bravo, but SEC Chair<a href=\"https://www.thecrowdfundinglawyers.com/competitive-enterprise-institute-criticizes-sec-shallow-end-jay-for-crypto-intransigence/\"> \"Shallow-End Jay\" </a>Clayton refused to back him in a recent interview. Alas, Clayton would only state what everyone already knew: bitcoin isn’t a security.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=8YtZJRUak8E\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://www.youtube.com/watch?v=8YtZJRUak8E\n</div><figcaption>Ether a security? Don\'t ask the SEC Chair  </figcaption></figure>\n<!-- /wp:core-embed/youtube -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>\"Shallow-End\" Jay Clayton failing to lead the SEC into the token future&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But what about “alt coins” Ether and Ripple? <a href=\"https://www.thecrowdfundinglawyers.com/competitive-enterprise-institute-criticizes-sec-shallow-end-jay-for-crypto-intransigence/\">\"Shallow-End Jay\"</a> offered this bit of wisdom: “If it’s a security, we’re regulating it.\" But this is circular. The SEC regulates securities, it’s in the name. The question is about boundaries. If the best the SEC has is “we’ll just take it case by case,” the U.S. economy suffers. Thus Congress must step in. Case-by-case is <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">fine if you’re a regulator</a>. But if you’re an entrepreneur or lawyer advising one it’s dispiriting to play mumblety-peg and wait for an SEC knock. Indeed, as one securities lawyer stated SEC investigations are like “<a href=\"http://www.thecrowdfundinglawyers.com/2018/02/12/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">living in hell without dying</a>.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The SEC\'s scattershot  updates to the “regulated community” has several drawbacks. First it breeds uncertainty in the markets as one article <a href=\"https://www.coindesk.com/is-the-window-closing-on-us-blockchain-leadership\">stated</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><em>Instead of leading with hope, optimism and open-mindedness, the SEC has been instilling fear into the markets by issuing a series of mixed actions, publishing unclear statements and sending cryptic messages via occasional speeches. They have divided and conquered the blockchain industry by stringing its participants along, without sharing any form of original thinking. </em></p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The U.S. is falling behind in the new tokenized world </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Second, it puts the future of the token economy into the domain of government turf protectors. Indeed, the U.S. will not continue as the envy of the capital-forming world if entrepreneurs move to Asia or Europe.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The lack of clear guidance also yields advantage to insiders at large law firms and <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">former commission staff</a>. They have personal relationships and communication backchannels. &nbsp;(Update: The SEC finally published additional <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">token guidance</a>, it was predictably underwhelming).  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Everyone should know the rules and Congress should make them.  Importantly, direction shouldn’t come from a huge federal agency and require a special course in tea leafing. Hopefully Congress and the president work together to quickly pass the Act. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>  via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com </a></p>\n<!-- /wp:paragraph -->','Congress tries to bring clarity to token markets','','publish','open','open','','congress-tries-to-bring-clarity-to-crypto-markets','','','2019-07-20 15:31:09','2019-07-20 15:31:09','',0,'http://www.thecrowdfundinglawyers.com/?p=315',0,'post','',0),(322,1,'2019-01-28 17:40:53','2019-01-28 17:40:53','<!-- wp:paragraph -->\n<p>Trustwire Corporation is a Maryland company specializing in cybersecurity and encryption. Since launching its equity crowdfunding campaign on the WeFunder portal in December, Trustwire has garnered 112 investors and topped $100k in investments. You can find out more about Trustwire and their crowdfunding campaign at the link below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p style=\"text-align:center\"><a href=\"https://wefunder.com/trustwire\"><strong>https://wefunder.com/trustwire</strong></a></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=-IyZtwDuKug\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://www.youtube.com/watch?v=-IyZtwDuKug\n</div></figure>\n<!-- /wp:core-embed/youtube -->','Trustwire tops $100k in crowdfunding campaign!!','','publish','open','open','','trustwire-tops-100k-in-crowdfunding-campaign','','','2019-06-04 02:02:47','2019-06-04 02:02:47','',0,'http://www.thecrowdfundinglawyers.com/?p=322',0,'post','',0),(327,1,'2019-02-01 14:44:50','2019-02-01 14:44:50','<!-- wp:paragraph -->\r\n<p><em>Venture capital</em>. It sounds so cool right? The phrase invokes images of Silicon Valley sharks and hotshot Stanford drop outs dueling over the soon-arriving billions from the next Apple or Google.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>But the reality is different. First, venture capitalists are wrong most of the time. Only <a href=\"https://www.inc.com/will-yakowicz/why-raising-venture-capital-is-for-losers.html\">around</a> 15% of venture-backed firms become superstars. Of course, that doesn’t mean the rest fail, but it does mean venture capitalists lose most of their bets.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:image {\"id\":331,\"align\":\"left\",\"width\":389,\"height\":251} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignleft is-resized\"><img class=\"wp-image-331\" src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/unnamed-file-1.jpg\" alt=\"\" width=\"389\" height=\"251\" />\r\n<figcaption>This guy really isn\'t that cool</figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<!-- wp:paragraph -->\r\n<p>Venture capital comes with strings, of course. VCs might get <a href=\"http://paulgraham.com/control.html\">vetoes</a> over certain big decisions regardless of board composition. In addition to control, they may provide poor advice or have different <a href=\"https://www.inc.com/kimberly-weisul/silicon-valley-all-investors-above-average.html\">intentions</a> than company founders. According to one Harvard Business School <a href=\"https://www.inc.com/will-yakowicz/why-raising-venture-capital-is-for-losers.html\">study</a> more than half of all VC funds delivered no better than low single-digit returns on investment. Worse, only 20 percent of funds achieved 20 percent returns (or better), a figure that they might be expected to deliver. Incredibly, nearly one in five funds delivered below-zero returns.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Venture Capitalists set terms for them not you </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>But if the company is a winner the story still flops. Half of all founders are removed <a href=\"https://medium.com/startup-grind/how-to-keep-control-of-your-company-1923d7e26f3f\">within 18 months</a> of their first funding round. The odds jump to <a href=\"https://medium.com/@amuse/how-to-retain-control-of-your-startup-a32cc66c11f9\">90%</a> after three years. While the Googles and Ubers could <a href=\"https://medium.com/@amuse/how-to-retain-control-of-your-startup-a32cc66c11f9\">negotiate</a> founder-share voting rights with disproportionate power, most can’t.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>For decades companies needing capital to scale had little choice but to play the VC game. But like the rollerblade, those days are over. Now companies can raise capital from many people who each have a small stake and no say in management. <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">Equity crowdfunding</a> allows the masses to evaluate a company’s chances for success while dispensing with the venture capital trap of board seats, special vetoes, and bad advice. The current maximum for a <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> raise is $1.07M over a 12-month period (a cap <a href=\"http://www.thecrowdfundinglawyers.com/2018/05/16/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">likely to rise</a> through Congressional action). More established companies can utilize <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>, which caps at $50M.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>As with anything, <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a> comes with trade-offs. The company doesn’t get a lump sum, the raise comes over time, and there is no guarantee the company will hit its goal. And companies must often hire marketers to help boost their raise and the cap table includes lots of small investors. But those small investors are also stakeholders invested in the company’s success and depending on the type of company, potential clients or customers. But in return for the extra hassle, the company controls all future business decisions.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Venture capital and </strong><strong>equity crowdfunding can work together</strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Of course, these two capital-raising methods needn’t be mutually exclusive. Venture capitalists sometimes want to see the marketplace prowess a successful equity crowdfund can bring before investing. They can also be investors in an equity crowdfund with side-negotiated perquisites.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Most importantly <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a> now gives the company options it didn’t have just a few years ago. It allows them to forego venture capital altogether or negotiate from a stronger position.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>If your company is thinking about raising venture capital you may want to rethink your business strategy and try a Segway, rollerblades are so 1990s.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></p>\r\n<!-- /wp:paragraph -->','Venture Capital versus Equity Crowdfunding','','publish','open','open','','venture-capital-versus-equity-crowdfunding','','','2021-01-02 23:32:11','2021-01-02 23:32:11','',0,'http://www.thecrowdfundinglawyers.com/?p=327',0,'post','',0),(337,1,'2019-02-15 20:37:43','2019-02-15 20:37:43','<!-- wp:paragraph -->\n<p>In 2017, Canadian-based social-media company <a href=\"https://www.kik.com/\">Kik</a> sold Kin, a token usable within and outside its native ecosystem. But late last year the SEC kiboshed the kibitzing and now the lawyers have drawn their swords. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":338,\"align\":\"left\",\"width\":413,\"height\":231} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/kik-1.jpg\" alt=\"\" class=\"wp-image-338\" width=\"413\" height=\"231\"/><figcaption>A Kik or a knife?</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>This case could be fervently important to the <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">unsettled token regulatory environment</a>. Alas, the<a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\"> SEC has been flummoxed</a> from the start, making <a href=\"https://www.coindesk.com/7-legal-questions-that-will-define-blockchain-in-2019\">discordant</a> declarations with little firm guidance. And Congress <a href=\"http://www.thecrowdfundinglawyers.com/2019/01/08/congress-tries-to-bring-clarity-to-crypto-markets/\">tried</a> to step in, but with the nonstop Trump show Republicans and Democrats can’t agree what color the sky is. So that leaves the courts. Kik has hired white-shoe fencers in DC and Palo Alto and neither side seems up for compromise. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Kik and its foundation isn’t giving back the $100 million from its token sales and the SEC’s enforcement division would have to backtrack on its <a href=\"http://www.thecrowdfundinglawyers.com/2018/02/12/from-meh-to-dont-tase-me-bro-ico-legal-advice/\">two-year policy</a> to let Kik slide. Also,  there are important questions that at this point only courts could decide. And those answers could profoundly affect America’s future tokenized economy. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik\'s response to the SEC: <em>Molon Labe</em></strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>In its “<a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/02/Kik-wells_response.pdf\">Wells Submission</a>,” a document kindly asking the SEC to go away. Kik presents itself as a victim of circumstance; diligently following the rules as they were, consulting qualified counsel and tax experts, and not selling Kin where issues could arise. It also argues subsequent decentralized Kin use makes it cryptocurrency like Ether and Bitcoin and shields it from the SEC’s watchful eyes. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But this argument has some obvious flaws. First, a YouTube <a href=\"https://www.youtube.com/watch?v=rqN7srwqRf8\">video</a> shows Kik’s CEO <a href=\"https://www.crowdfundinsider.com/2019/02/144197-what-does-kiks-youtube-video-mean-for-their-fight-against-the-sec/\">talking</a> the language of securities, not currencies when discussing Kin with potential investors. Second, Kik initially sold Kin only to accredited investors via a Form D with the SEC, which is what security-selling companies do (or in this case warrants for future securities). </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It then sold nearly $50M more Kin to the public in what it deemed a Token Distribution Event (TDE). But here it chose not to distribute through a qualified exemption, either <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> or <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>. Thus it’s hard to square Kik taking the precaution to sell the first $50M under <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>, which admits it’s a security and then sell the second $50M to the public in an open sale.  Finally, Canadian authorities warned them they were selling securities so they didn’t sell there, nor to New Yorkers, or the Chinese. But they did sell in every other U.S. jurisdiction.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=rqN7srwqRf8\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://www.youtube.com/watch?v=rqN7srwqRf8\n</div><figcaption>Ted talks cryptocurrencies or securities? </figcaption></figure>\n<!-- /wp:core-embed/youtube -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik\'s is best arguing about the SEC\'s lack of guidance </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But Kik stands much firmer when it discusses the SEC’s atrocious lack of guidance, its scattershot way of disseminating direction, and its ‘policy by enforcement’ policy that kills innovation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Cryptocurrencies (including Bitcoin and Ether) have been gaining adoption for many years. (Update, after years the<a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\"> SEC finally provided guidance</a>, it was predictably underwhelming.) Thus, throughout this period, the Commission did not provide any meaningful, forward-looking guidance about the application of the federal securities laws in this space, nor did it develop a regulatory structure that would make sense for these emerging technologies. But as <a href=\"https://www.thecrowdfundinglawyers.com/sec-unleashes-hurricane-ico/\">cryptocurrency markets exploded in 2017</a>, the <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">Commission finally spoke</a> on the matter, but even then, the Commission did not give industry participants a clear view of how or when the SEC believed the federal securities laws would apply to sales of cryptocurrencies . . . </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Further, law and regulations should provide clear notice and guidance without necessitating confirmation of compliance by regulatory agencies. In the absence of any clear guidance from the Commission, companies like Kik are under no obligation to present every new idea to the Commission for its blessing. This is their strongest argument.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But even more amazing is a quote Kik provides from an SEC staffer implying uncertainty is a benefit because firm Commission guidance via hypotheticals might encourage subterfuge. (Valerie Szczepanik aka <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">NPC Valerie</a>, Address at the ACT-IAC 2018 Blockchain Forum (April 3, 2018)).  Yet, this is the attitude of someone who’s never run a business. Because most entrepreneurs aren’t trying to avoid regulations, indeed they are trying to follow the rules so they don’t get a dreaded knock on the door from Ms. Szczepanik. In reality, that knock usually means expensive lawyers, capitulation, or shut down. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The SEC posture of \'enforcement first\' will create a graveyard of Kik companies </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>At the Commissioner level, only Hester Pierce, aka <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">CryptoMom</a>, <a href=\"https://www.coindesk.com/sec-commissioner-peirce-confirms-guidance-on-crypto-tokens-is-coming\">recognizes</a> the burden the SEC’s insouciance is causing those building the future economy. The Enforcement division with its job security, union protections, and pensions are the last people that should be setting policy for the SEC and by trail the larger economy. As Kik warns, “This ‘regulation by enforcement’ approach has had a dramatic and negative impact on the development of blockchain and cryptocurrency technologies in the United States as innovators have either directed their activities overseas or shelved their projects altogether.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://youtu.be/8YtZJRUak8E\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://youtu.be/8YtZJRUak8E\n</div><figcaption>What\'s a security? Don\'t ask the boss.</figcaption></figure>\n<!-- /wp:core-embed/youtube -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik lawsuit could answer some important questions </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>That\nis why judicial findings even if not in Kik’s best interest would start the\npath toward some workable rules. Several questions need answering and the SEC\nseems unwilling (at least so far) and Congress is too distracted to answer. They\ninclude:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>How much token\ndecentralization will make the SEC back off? Corporate Finance Division\nDirector <a href=\"https://www.sec.gov/biography/william-hinman\">Bill Hinman</a>\nstated Ethereum isn’t a security because it’s decentralized ‘enough.’ Hinman is\nan experienced securities lawyer but not Senate-approved. It was welcome news\nand a contrary opinion would have killed the token economy in the U.S. But\nwhere is the line? </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list -->\n<ul><li>How much consumptive\nuse of a token as opposed to passive ‘hodl’ factor into what makes it a\nsecurity or currency. In <em>United Housing Found., Inc. v. Forman</em>, 421 U.S.\n837, 852-853 (1975) the Court concluded no expectation of profits exists where\npurchasers are <strong><em>primarily </em></strong>led to expect an item for use or\nconsumption. And according to Kik, even if infrastructure building ensures a\nviable ecosystem, that shouldn’t count as efforts to increase investment value.\nHow does investment for profit versus use as a medium exchange affect how the\nSEC should view tokens and token ecosystems? </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The SEC has stretched the measure of value beyond Supreme Court dictates </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:list -->\n<ul><li>How is value\nmeasured through efforts of management versus market forces? Kin holders don’t\nown a traditional security in the sense of ownership in Kik. Thus did Kin\nbuyers expect its value to rise through the “common enterprise” of Kik as the\nseller? Kik avers its only obligation was to deliver Kin to purchasers. Kik\nstates markets not its efforts will drive the value of Kin, “courts have held\nthat where a contract involves a sale of a commodity and expected profits arise\nprimarily from resale on the secondary market, the final prong of <em>Howey </em>is\nnot satisfied. See <em>Noa v. Key Futures, Inc</em>., 638 F.2d 77, 79 (9th Cir.\n1980) (no expectation of profits from the efforts of others under <em>Howey</em>\nbecause, once the commodity was purchased, the profits of the investor depended\non market fluctuations, not the managerial efforts of the defendant).”</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The <em>Howey</em> Test is outdated and flawed </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:list -->\n<ul><li>How much\nshould we rely on <em>Howey</em>? The SEC and courts have relied on the <em>Howey</em>\ntest since 1946. Is this still the best guide in the token economy? <em>Howey</em>\nembodies a “flexible rather than a static principle, one that is capable of adaptation\nto meet the countless and variable schemes devised by those who seek the use of\nthe money of others on the promise of profits.” <em>SEC v. W.J. Howey Co</em>.,\n328 U.S. 293, 299 (1946). This flexibility may have served a purpose in a\ndifferent era, the question is should an independent federal agency have this\nmuch leeway in deciding the future of the U.S. economy. </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list -->\n<ul><li>How much discretion should the SEC have prosecuting nonfraudulent cases? Everybody recognizes the devastating affect an SEC investigation can have on a business. Even if the company wins it can take years and cost millions. No one has yet claimed Kik misled or defrauded them into purchasing Kin. Should the SEC be able to destroy a company unwilling to settle where no actual harm has occurred? </li><li>These questions need answers and faster than the SEC or Congress is providing them. Courts are not exactly paragons of efficiency, but their decisions provide concrete answers (after appeals). Further, courts have less turf-protecting or political motivations in finding answers. Kik may be case that kikstarts this long-needed process. </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a> </p>\n<!-- /wp:paragraph -->','SEC goes for Kik will it get knifed?','','publish','open','open','','sec-goes-for-kik-will-it-get-knifed','','','2019-07-18 23:15:03','2019-07-18 23:15:03','',0,'http://www.thecrowdfundinglawyers.com/?p=337',0,'post','',0),(338,1,'2019-02-15 20:27:10','2019-02-15 20:27:10','','kik','','inherit','open','closed','','kik-2','','','2019-07-18 22:54:08','2019-07-18 22:54:08','',337,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/kik-1.jpg',0,'attachment','image/jpeg',0),(340,1,'2019-02-21 19:55:02','2019-02-21 19:55:02','<!-- wp:paragraph -->\n<p>Will blockchain kill Big Data? Will upstart companies untangle\nthe internet from our Silicon Valley overlords? Will the future web center on\nsecurity and privacy or free and surveilled? </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":342,\"align\":\"left\",\"width\":481,\"height\":188} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/Google-1-1024x400.png\" alt=\"\" class=\"wp-image-342\" width=\"481\" height=\"188\"/><figcaption><strong>Will Google soon stop \"assisting\" us</strong>? </figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Maybe. Author George Gilder tackles these questions in <a href=\"https://www.amazon.com/Life-After-Google-Blockchain-Economy/dp/1621575764\">Life After Google</a>. He believes a new cyber world is almost upon us. And in it, tech giants don’t record and sell our every public thought. Triumphantly, this world surpasses the determinism of ‘do no evil’ and unleashes the creativity and surprise of the individual mind. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Gilder doesn’t present a unified theory for this coming paradigm shift on a practical level. But he does offer compelling theoretical prognostications as to why Google’s model will stop working. Alas, Gilder’s future is individualistic and empowering. Yet, whether that world is really upon us is debatable. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Google\'s system of the world is deterministic, it cannot last </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Gilder traces Google’s story back to an obscure 1930 German academic conference where the finest minds gathered to present a theory of the universe. The questions of the world were at hand. Is the world finite? And can it be explained with mathematical precision? Most said yes, but one young upstart proved them wrong. But Kurt Godel showed “Every logical system necessarily depends on propositions that cannot be proved within the system.” Thus we are not reducible to calculable things, uncertainty always exists. This theory and attending debate goes through Isaac Newton and Alan Turing and finally lands at Stanford University’s computer labs where Sergey Brin and Larry Page created a company that would dominate the web like no other. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Google became a juggernaut counterintuitively—reducing consumer costs to zero. But in return we give Google something more valuable than money: our time and attention, where we are, what we do, who we communicate with, how we spend our time. Google captures this and peddles it to companies that sell us things algorithms say we want. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>“Above all,” Gilder states, “you pay in time. Time is what money\nmeasures and represents—what remains scarce when all else becomes abundant in\nthe ‘zero marginal cost’ economy. Money signals the real scarcities of the\nworld concealed in the false infinities of free . . . It’s the free world, and\nit is reaching past your wallet, spurning your earned money, to seize your\ntime—which is actually your life.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The New World of surprise will pass Google through conscious and human ingenuity  </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Gilder claims Google along with Facebook, Amazon, and Apple\noperate under the old, finite deterministic view that ignores surprise and\nhuman conscious in favor of essentially exhausted aggregated knowledge. “The\nneo-Marxism of today’s Silicon Valley titans repeats the error of the old\nMarxists in its belief that today’s technological achievement—not steam and\nelectricity, but silicon microchips, artificial intelligence, machine learning,\ncloud computing, algorithmic biology, and robotics—is the definitive human\nachievement. The algorithmic eschaton renders obsolete not only human labor but\nthe human mind as well.” “The conclusion” according to Gilder, “is that the last\nsignificant human beings are the inventors of super-intelligent AI.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But it is this deterministic world view that will eventually provide Google’s downfall.  Because “Big Data” can only capture so much, build so many “cloud” farms, assign so many new email addresses, the laws of physics and computer science will eventually catch up. And at that point the usefulness and returns dissipate. He explains:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Cleaving all information is the great divide between creativity and determinism, between information entropy of surprise and thermodynamic entropy of predictable decline, between stories that capture a particular truth and statistics that reveal a sterile generality, between cryptographic hashes that preserve information and mathematical blends that dissolve it, between the butterfly effect and the laws of averages, between genetics and the law of large numbers, between singularities and big data—in a word, the impassible gulf between consciousness and machines. &nbsp;</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>So Gilder sees the coming change through the limitations of physical laws like the speed of light and the laws of computer science that limit how much data can be captured and used given the now-known conduits and substrates. But there is another reason Google’s dominance may soon end and that is the revolutionary technology of blockchain. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Blockchain will eventually overtake Google as the reservoir of information</strong> </h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Blockchains are distributed ledgers that record transactions\nusing some unit like Bitcoin that cannot be censored or duplicated. The power\nof blockchain, at least in theory, is that it distributes control over network\nnodes instead trusted third parties like governments or Google. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Google is hierarchal but life after Google will heterarchical. Google is top-down. Life after Google will be bottom-up. Google rules by the insecurity of all the lower layers in the stack. A porous stack enables the money and power to be sucked up to the top. In life after Google, a secure ground state in the individual human being, registered and timestamped in a digital ledger, will prevent this suction of hierarchal power. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Thus blockchain will allow individuals to control and distribute personal data on their own terms. In a blockchain world they will get tokens for their time and attention—for the information in their brains that machines cannot cipher. “The crude imperatives of ‘free’ will give way to the calibrated voluntary exchanges of free markets and micropayments.”   </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Gilder profiles companies and protocols using blockchain or other innovations like advances in virtual reality. These companies will dilute Google’s power and lead us into a decentralized world. These companies and established protocols include Bitcoin, Ethereum, Brave, Bitmain, Blockstack, NEO, Cardano, EOS, and IOTA. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Thus, the competition between Bitcoin and Ethereum joined to lesser degree by XRP, EOS, Zcash and Monero will someday facilitate global transactions where individuals and security triumph over Big Data. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Gilder is a master futurist, but tech companies will still \"do evil\"</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>While Gilder describes some promising companies as hopeful counterweights to the Googleplex, he fails to present a practical unified theory as to how all this will work. The book leaves open to his mandate for uncertainty and surprise how we will get there for those of us two degrees removed from the cypherpunk and tech-geek scene. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":347,\"align\":\"left\",\"width\":442,\"height\":372} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/George-Gilder-1-1024x863.jpg\" alt=\"\" class=\"wp-image-347\" width=\"442\" height=\"372\"/><figcaption><strong>George Gilder</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>On an everyday level, what will the new the new web look\nlike? How will we control our data and distribute it on our terms and not\nGoogle’s? Gilder only gives hints, promoting for instance Brendan Eich’s new\nbrowser Brave, but fails provide a path as to how it will overtake Chrome,\nFirefox, and Edge. Dapps the supposed tools of the decentralized future aren’t\nmentioned at all. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And what assurance do we have that the companies Gilder profiles won’t also capture and monetize our public thoughts? Some companies Gilder mentions are offering free services. What is government’s role in our decentralized future? Unfortunately, these questions go mostly unanswered. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Our future online world is up to us in what products we use </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Yet we can help shape the future Gilder predicts and many want.\nGoogle’s power and Facebook’s scandals have seeped into public consciousness. Starting\nto resonate is just how much we are giving away for what we get “free.” If\nGilder’s vision ensues it will take more than laws of physics, it will require\ncitizens demanding or at least supporting those determined to create our decentralized\nfuture. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, it is refreshing to see someone thinking about\nthese issues on the economic right. Gilder is thankfully acquainted with the\nAustrian School of Economics. The individualism of Gilder’s predicted future\nwill be distorted by present economic paradigms that range from socialism to\ncrony capitalism. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So much writing about technology and by technologists comes\nsteeped in do-gooder platitudes of the Google code and Burning Man creed Gilder\nalso cites. This language masks the underlying motives and economic realities\nof those pronouncing it and essentially lubricates the lies of those telling us\nthey “do no evil.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Gilder predicts the decline of the elite academy </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Another example is Gilder’s decrees about the academy. Gilder rightly sees through the credentialism that not only defines the Googleplex but stifles innovation. He champions (perhaps too much) incubators for entrepreneurs like those seeded by Peter Theil that promote young college-eschewing visionaries. Indeed, Gilder sees this emphasis on paper credentials and its dogmatic approach to social issues as debilitating and even anachronistic. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Credentials are the way the old academic order perpetuates itself and its hierarchies. At vast expense, the universities channel students into echoing corridors or an increasingly reactionary educational establishment that imagines that socialist nostrums, identity politics, chemophobia, sterile hedonism, druidical sun-henges, totemic windmills, and great walls of batteries are progressive.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>. . . </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Ivy institutions are pursuing the fancies of a declining intellectual and business elite, full of chemophobic nags and luddite lame-ducks quacking away on their miasmatic pools of old money as the world whirls past them. &nbsp;</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Overall this book is well worth reading if one can get past\nthe ‘insiderism’ of Silicon Valley speak and the emphasis on theory beyond\npractical use and the promotion of particular companies some of which, odds are,\nwill falter or turn “evil” themselves. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Nevertheless, Gilder presents a hopeful and compelling\nvision without Big Data and with a realistic view of how we pay for what we get\n“free.” It may take more effort from the masses than he realizes but his future\nis (hopefully) attainable. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>  via <a href=\"https://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a> </p>\n<!-- /wp:paragraph -->','What will life be like after Google?','','publish','open','open','','what-will-life-be-like-after-google','','','2019-07-18 22:43:12','2019-07-18 22:43:12','',0,'http://www.thecrowdfundinglawyers.com/?p=340',0,'post','',0),(342,1,'2019-02-21 19:43:49','2019-02-21 19:43:49','','Google','','inherit','open','closed','','google-2','','','2019-07-18 22:42:44','2019-07-18 22:42:44','',340,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/Google-1.png',0,'attachment','image/png',0),(347,1,'2019-02-21 19:53:00','2019-02-21 19:53:00','','George Gilder','','inherit','open','closed','','george-gilder-2','','','2019-02-21 19:53:00','2019-02-21 19:53:00','',340,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/02/George-Gilder-1.jpg',0,'attachment','image/jpeg',0),(351,1,'2019-03-14 20:17:38','2019-03-14 20:17:38','<!-- wp:paragraph -->\n<p>The Securities and Exchange Commission (SEC) hatched from the New Deal’s heady days. &nbsp;It was a time many thought unfettered capitalism was done, and disinterested technocrats could smooth free-market excesses and regulate economic affairs more fairly and efficiently. FDR and many others—<a href=\"https://www.amazon.com/Way-World-Works-Gateway-Contemporary/dp/0895263440\">wrongly</a> as it turned out—blamed the 1929 market crash on insufficient government oversight. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":2049,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/cryptomom-1.png\" alt=\"Crypto Mom\" class=\"wp-image-2049\"/><figcaption><strong>Crypto Mom</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The SEC now has a $1.6 billion budget, over 4,500 employees,\nand eleven regional offices. It typifies federal agencies with its pedigree: old,\nslow, bloated, obsessed with credentialism, self-importance, and arrogance. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Interestingly, in <a href=\"http://www.thecrowdfundinglawyers.com/2019/02/21/what-will-life-be-like-after-google/\">Life After Google</a>, George Gilder wrote about America’s decaying Ivy institutions:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p> Feeding on the air of entitlement of fading upper-class institutions that accomplish “little with a lot” of other people’s funds, the Harvard initiative reflected the increasing inebriation of elite American education. Focusing on stopping progress, barring new power plants, dismantling chemical facilities, mobilizing against Israel, and other reactionary pursuits, Ivy institutions are pursuing fancies of a declining intellectual and business elite, full of chemophobic nags and luddite lame-ducks quacking away on their miasmic pools of old money as the world whirls past them. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>And when bright but indoctrinated young minds graduate from these formerly august institutions many move to Washington, DC. They come to work at places like the SEC and other name-brand agencies. And they come to enforce the dogma they learned, they come to oversee the American experiment without any responsibility for the results, they come to feed the Machine. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Shallow-End Jay runs the culture of \'the Machine\' that CryptoMom is fighting</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>SEC chairman \'<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End</a> <a href=\"https://www.sec.gov/biography/jay-clayton\">Jay Clayton</a>\' typifies this path: Ivy league undergraduate to Cambridge, back to the Ivy League for law school, a federal clerkship, a big law firm and adjunct Ivy League teaching position, and finally to head a federal agency. Mr. Clayton undoubtedly worked hard for his success as did those that came before and after him. But no one who takes this path starts a business, takes out a business loan, meets a payroll, files for bankruptcy, or goes without lunch because of the first four. Thus, the question is who benefits and at what cost? &nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":353,\"align\":\"left\",\"width\":404,\"height\":269} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/03/Jay-Clayton.jpg\" alt=\"\" class=\"wp-image-353\" width=\"404\" height=\"269\"/><figcaption><strong>Jay Clayton, pledging fealty to the Machine</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The SEC’s culture as with the rest of the federal government is one of buck passing, lack of responsibility, and no accountability. Every public appearance by a Machinist starts by stating they don’t speak for their agency, that what follows is personal opinion. It’s a little thing and a legal obligation but it insulates them from their words, what they are disclaiming is responsibility. &nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>SEC reports on their own performance are an exercise in bureaucratic gobbledygook</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>One sees it in the myriad reports they author evaluating their performance. Here is how the SEC <a href=\"https://www.sec.gov/files/secfy18congbudgjust.pdf\">states</a> it will improve on a poor performance metric. It exemplifies responsibility-less gobbledygook that above all disclaims accountability:  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><strong>Plan for Improving Program Performance: </strong>To address the issue of timeliness in investigations, the Division is taking measures that include emphasizing expediency in quarterly case reviews, promoting best practices regarding efficiencies in various phases of the investigative process, leveraging data analytics capabilities, and conducting training on tools that expedite investigations. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>And if all this “emphasizing,” “promoting,” “leveraging,” and “conducting” doesn’t work, no worries they’ll come up with more things to emphasize, promote, leverage, and conduct in the next budget request.  Overall though, ask the Machine and they’ll tell you they’re doing a bang-up job. In that same <a href=\"https://www.sec.gov/files/secfy18congbudgjust.pdf\">report</a> here is how it self-graded on their first “Strategic Goal”:  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Strategic Goal 1: The Commission believes that its rules and regulations should be drafted to enable market participants to clearly understand their obligations under the federal securities laws and to conduct their activities in compliance with law. The Commission aims to promulgate rules that are clearly written, easily understood, and tailored toward specific ends.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p> Strategic Goal 1. Of 10 performance targets, the agency met or exceeded nine and did not meet one. The SEC devotes a large share of resources responding to no-action letters and interpretive and other requests from regulated entities, public companies, and other outside parties. The agency is committed to speeding the response to such requests. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Providing clear guidance in a timely manner is certainly praiseworthy\nand hitting 9 of 10 metrics seems great. But dig a little and the picture\nbecomes less rosy. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>SEC masks its failures as successes&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>For instance, in the\nTrading and Markets (TM) division: “The target is <strong>based on a fixed deadline </strong>for\nresponses to written requests for no-action letters, exemptive applications,\nand written interpretive requests (collectively, “requests”). Some requests are\nextremely complex and require extensive consideration and consultation both\nwithin and outside TM.” (Emphasis added). </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, what’s the deadline? They don’t say. How long is it taking for complex issues, like crypto? Again, they don’t say. But on a brighter note, they’ll return phone calls or emails within two weeks.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>One place SEC Machinists admittedly fail is the Enforcement Division. Being under SEC investigation <a href=\"http://www.thecrowdfundinglawyers.com/2019/01/08/congress-tries-to-bring-clarity-to-crypto-markets/\">according to</a> one securities lawyer is like “being in hell without dying.” And, given the stress and expense, the SEC’s goal is to bring enforcement actions within two years of opening an investigation. They only met that goal 53% of the time. And the Machine isn’t shy about what happens if you challenge them: “In addition to victories in the cases the agency brings to trial, the SEC’s litigation efforts also help the SEC obtain strong settlements in other cases by providing a credible trial threat and making it clear that the SEC will go deep into litigation and to trial, if necessary, in order to obtain appropriate relief.” Translation: our budget is unlimited, yours isn’t, don’t f*ck with us.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Evaluations of SEC performance are strikingly different when done outside the agency</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Compare the SEC’s rosy view with those that engage SEC guidance and advise clients. It is less sanguine. <a href=\"https://www.crowdfundinsider.com/\">Crowdfund Insider</a> recently published two articles about guidance on crypto issues. Of course, some chose to remain anonymous as to not upset the Machine. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Is the SEC hitting “Strategic\nGoal 1”? not <a href=\"https://www.crowdfundinsider.com/2019/03/145225-whats-the-back-story-to-security-token-offerings-and-regulation/\">according\nto</a> “insiders”: “As for the new SEC Fintech portal where you can\nsubmit your questions to public officials. We have heard that responses are\nslow to come – if they ever come at all – so don’t hold your breath on\nreceiving any feedback. A bit of a policy black hole… that’s too bad.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":355,\"align\":\"left\",\"width\":302,\"height\":382} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/03/Linda-Lerner-1.jpg\" alt=\"\" class=\"wp-image-355\" width=\"302\" height=\"382\"/><figcaption><strong>Linda Lerner</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>To her credit, securities lawyer <a href=\"https://www.crowell.com/professionals/Linda-Lerner\">Linda Lerner</a> put\nher name on <a href=\"https://www.crowdfundinsider.com/2018/11/140977-attorney-on-sec-crypto-asset-marketplaces-by-not-allowing-intermediaries-they-are-stifling-innovation/\">her\nwords</a>: &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>But while there are many crypto asset platforms heading down this path, these platforms must first become a registered broker-dealer. As one may expect, this process can take some time. But in Lerner’s opinion, the feds are dragging their feet for far too long, overly concerned about getting it wrong. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>One of the more courageous securities lawyers speaks frankly about SEC failings&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Lerner, who is knee deep in the process, says the SEC is “standing there like a roadblock because they are afraid something will blow up in their faces.” </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>“By not allowing the intermediaries to get registered they are stifling innovation and preventing issuers from raising capital, they are standing in the way …” states Lerner. “They are so afraid something might go wrong.” </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Lerner says they punish everyone who does not pursue a compliant process but the enigma is there is no clearly defined compliant option. Communication between divisions within the SEC may be a problem as well. Lerner is concerned there has been a disconnect, at times, between some of the larger segments of the securities regulator. The Commission has been slow to create an effective management and information process for crypto asset innovation. Trading and Markets must coordinate with CorpFin and, meanwhile, Enforcement is investigating dozens or hundreds of allegations of crypto fraud. As a federal bureaucracy, the SEC can be very siloed at times.  </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>CryptoMom\'s presence stands athwart and agency culture of self-congratulation</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<p>Standing athwart the Machine like a 21<sup>st</sup> century Bill Buckley yelling “Stop!” is Commissioner Hester Peirce aka <a href=\"https://www.wsj.com/articles/meet-the-watchdog-called-cryptomom-11546606801\">CryptoMom</a>. Peirce recently <a href=\"https://www.coindesk.com/hester-peirce-dc-blockchain-summit\">spoke</a> at the Digital Chamber of Commerce’s Blockchain conference. Despite her Machinist background she has the entrepreneur’s government-skeptic eye. But unfortunately, her ability to affect any real change is limited by her single vote and voice.</p>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?time_continue=28296\\u0026v=BVgO0UResBY\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"align\":\"center\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\n<figure class=\"wp-block-embed-youtube aligncenter wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps://www.youtube.com/watch?time_continue=28296&amp;v=BVgO0UResBY\n</div><figcaption><strong>CryptoMom talking crypto</strong></figcaption></figure>\n<!-- /wp:core-embed/youtube -->\n\n<!-- wp:paragraph -->\n<p>As she discussed the various issues the crypto-sphere has asked for three years e.g. When will we get token guidance? (Update: the <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">token guidance</a> finally came and was predictably underwhelming). What’s the path forward for security tokens? Why hasn’t the Commission approved any Reg A+ token sales? Can we do utility tokens? Are you concerned entrepreneurs will leave the US? CryptoMom repeatedly suggested companies advise her so she can follow up, educate her on vexing issues, and provide policy solutions she can promote. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>While it’s nice a rouge Machinist like CryptoMom will promote entrepreneurial concerns, her limited influence was obvious in her answers. Peirce can only do so much because she needs help from the courts or Congress. (<a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik,</a> flush with money, and seemingly <a href=\"http://www.thecrowdfundinglawyers.com/2019/02/15/sec-goes-for-kik-will-it-get-knifed/\">ready for a fight</a> could help.)</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The Machine\'s Path leads to decline, CryptoMom\'s path to innovation </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>This leaves the US to slowly <a href=\"https://www.crowdfundinsider.com/2019/03/145225-whats-the-back-story-to-security-token-offerings-and-regulation/\">lose\ninfluence</a> as technologists, entrepreneurs, and innovators won’t wait over\ntwo years for an Ivy League-trained lawyer to green light a project or bankrupt\nit. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the meantime, France, (<a href=\"https://www.crowdfundinsider.com/2018/11/140977-attorney-on-sec-crypto-asset-marketplaces-by-not-allowing-intermediaries-they-are-stifling-innovation/\">FRANCE!</a>) will soon allow ICOs without a formal approval process. The <a href=\"https://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/\">UK</a>, of course, is far ahead. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The people at the SEC have good motives, they do their jobs according to the expectations and conventions of the Machine. But they are fiddling away the future of the US economy as the crypto world whirls past them. CryptoMom is showing us the way forward. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a></p>\n<!-- /wp:paragraph -->','Crypto Mom versus the Machine','','publish','open','open','','cryptomom-versus-the-machine','','\nhttps://www.thecrowdfundinglawyers.com/why-the-brits-are-killing-us-in-equity-crowdfunding/','2019-08-15 19:20:54','2019-08-15 19:20:54','',0,'http://www.thecrowdfundinglawyers.com/?p=351',0,'post','',0),(353,1,'2019-03-14 20:00:26','2019-03-14 20:00:26','','Jay Clayton','','inherit','open','closed','','jay-clayton-2','','','2019-03-14 20:00:26','2019-03-14 20:00:26','',351,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/03/Jay-Clayton.jpg',0,'attachment','image/jpeg',0),(355,1,'2019-03-14 20:02:41','2019-03-14 20:02:41','','Linda Lerner','','inherit','open','closed','','linda-lerner-2','','','2019-03-14 20:02:41','2019-03-14 20:02:41','',351,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/03/Linda-Lerner-1.jpg',0,'attachment','image/jpeg',0),(366,1,'2019-04-08 16:45:15','2019-04-08 16:45:15','<!-- wp:image {\"id\":367,\"align\":\"center\",\"width\":585,\"height\":424} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/04/CFgif.gif\" alt=\"\" class=\"wp-image-367\" width=\"585\" height=\"424\"/><figcaption><strong>Equity Crowdfunding can help capitalize your business!</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Are you an entrepreneur or small business owner looking to raise capital? Have you tried going the VC route? or don\'t want a loan? Equity Crowdfunding through Reg CF may be the right move for you! Come listen to securities lawyers Paul H. Jossey and Maureen L. Murat discuss the basics of this exciting new way to raise capital from 5:30PM to 8:00PM on April 25 at WeWork, 80 M Street, SE Washington, DC 20003. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Topics discussed will include:  Types of crowdfunding/benefits for company of Reg CF, Legal  requirements/\"reality\" of successful raises, Following up after the  raise/risks, Future fixes to Reg CF, Doing a token sale through Reg CF,  and Reg CF leading to Reg A+.   </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Event is free, register here: <a href=\"https://www.eventbrite.com/e/equity-crowdfunding-under-reg-cf-what-you-need-to-know-tickets-59800952258\">https://www.eventbrite.com/e/equity-crowdfunding-under-reg-cf-what-you-need-to-know-tickets-59800952258</a></p>\n<!-- /wp:paragraph -->','SAVE THE DATE - Equity Crowdfunding Panel, what you need to know!','','publish','open','open','','save-the-date-equity-crowdfunding-panel-what-you-need-to-know','','','2019-07-24 16:44:03','2019-07-24 16:44:03','',0,'http://www.thecrowdfundinglawyers.com/?p=366',0,'post','',0),(373,1,'2019-04-14 12:49:58','2019-04-14 12:49:58','<!-- wp:paragraph -->\r\n<p>Securities and Exchange Commission (SEC) crypto czar <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Valerie Szczepanik</a> paused her nonstop conference-jaunting long enough to release token “guidance” for entrepreneurs and industry professionals. The <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/04/SEC-dlt-framework-April-3.pdf\">document</a> itself was unsigned, but the “public statement announcing it” was <a href=\"https://www.crowdfundinsider.com/2019/04/146009-long-anticipated-sec-issues-framework-analysis-for-digital-assets/\">co-signed</a> by Ms. Szczepanik and SEC Director of Corporation Finance William Hinman.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:image {\"id\":2052,\"align\":\"center\"} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter\"><img class=\"wp-image-2052\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/NPC-Valerie.jpg\" alt=\"NPC Valerie\" />\r\n<figcaption><strong>NPC Valerie</strong></figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<!-- wp:paragraph -->\r\n<p>Although the “guidance” purported to “provide a framework for analyzing whether a digital asset has the characteristics of one particular type of security – an “investment contract.’” Its most notable feature is the buck-passing prose that typifies commission crypto-decrees. In totality, this document underwhelms in cogency, time, value, and cost.  </p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>According to <a href=\"https://www.coindesk.com/secs-crypto-token-framework-falls-short-of-clear-and-actionable-guidance\">media reports</a> the SEC toiled a half year on the 13-pager. And given that time frame, it plausibly cost the taxpayers around $250k in labor. Because in 2017, Ms. Szczepanik <a href=\"https://www.federalpay.org/employees/securities-and-exchange-commission/szczepanik-valerie-a\">earned</a> nearly quarter-million dollars (not counting benefits), it’s probably more now with her new title. And <a href=\"https://www.federalpay.org/employees/securities-and-exchange-commission/hinman-william-harold\">records</a> list Mr. Hinman’s 2017 salary at $217k but he only started in May of that year so that may be prorated. Both have hordes of lawyers and support personnel who surely contributed.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>We gave NPC Valerie $250,000 last year and all we got was this lousy report </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>So what did we get?</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The first thing one notices is how steadfastly determined <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Ms. Szczepanik</a> and Mr. Hinman are that no one take their work product seriously. Even for the SEC the disclaimer is a doozy:</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:quote -->\r\n<blockquote class=\"wp-block-quote\">\r\n<p>This framework represents the views of the Strategic Hub for Innovation and Financial Technology (“FinHub,” the “Staff,” or “we”) of the Securities and Exchange Commission (the “Commission”). It is not a rule, regulation, or statement of the Commission, and the Commission has neither approved nor disapproved its content. Further, this framework does not replace or supersede existing case law, legal requirements, or statements or guidance from the Commission or Staff. Rather, the framework provides additional guidance in the areas that the Commission or Staff has previously addressed.</p>\r\n</blockquote>\r\n<!-- /wp:quote -->\r\n<!-- wp:paragraph -->\r\n<p>Moreover, in case anyone thought to discard the warning as necessary boilerplate, the document itself disabuses that notion. The word “may” appears 22 times. It cites only one case from this century, the rest are: 1943, 1946, 1967, 1973, 1974, 1976, 1985, 1992, and 1994—times of peak relevance for cryptocurrency and digital assets.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>New SEC Guidance provides nothing new but adds more \"factors\" making analysis harder for token entrepreneurs </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The document provides little new from the SEC’s previous token statement, the two-year old <a href=\"https://www.sec.gov/litigation/investreport/34-81207.pdf\">DAO report</a>. In sum, the SEC will use the dated <em>Howey</em> Test, and consider other factors that “may” be important but only “some.” Don’t go thinking this is “exhaustive.” Essentially this document resembles the work of a nervous first-year associate at a mid-level law firm. But what cost the hypothetical firm two-days of billables took the SEC six months and cost perhaps a quarter-million dollars.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Interestingly, industry participants whose livelihoods involve advising those creating the digital economy were unimpressed, as they often are with first-year associate work. As one <a href=\"https://www.crowdfundinsider.com/2019/04/146099-is-the-no-action-letter-for-turnkey-jet-a-no-action-non-event-doug-ellenoff-comments-on-sec-digital-asset-statement-and-sto-framework/\">concluded</a>, the long-awaited guidance opined, “laundromat tokens are still laundromat tokens.” Others were less colorful. One <a href=\"https://www.coindesk.com/secs-crypto-token-framework-falls-short-of-clear-and-actionable-guidance\">stated</a>, “this guidance presents a framework that will stifle investment in and innovation of open blockchain networks in the United States.” One fancy lawyer <a href=\"https://www.coindesk.com/secs-crypto-token-framework-falls-short-of-clear-and-actionable-guidance\">drabbed</a>, “A lot of it is a reiteration of what the law is and has been.” Finally, another <a href=\"https://www.coindesk.com/secs-crypto-token-framework-falls-short-of-clear-and-actionable-guidance\">worried</a>, “Taken liberally, that definition could really impact and even hinder the process in which a token project/start-up can decentralize itself.”</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>SEC token guidance is dazed, confused, and tattooed </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Yet, anyone surprised by the SEC’s latest non-move hasn’t paid attention. Everyone knows tokens caught the commission flatfooted, even though the first ICO <a href=\"https://www.forbes.com/sites/laurashin/2017/09/21/heres-the-man-who-created-icos-and-this-is-the-new-token-hes-backing/#371c65161183\">happened</a> six years ago. Thus, to catch up it appointed a ‘Senior Advisor for Digital Assets and Innovation.’ One might think the lack of foresight that made the position necessary would evince a need for new thinking, perhaps someone familiar with the entrepreneurial grind. Alas, one would be wrong.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Instead the commission chose career bureaucrat Ms. <a>Szczepanik</a>. Because nothing apparently says “innovation” like someone who’s worked at the SEC since the Clinton administration and came from Enforcement. Buck-passing often accompanies such a career. And Ms. Szczepanik’s stance toward rules shows this. Instead of giving entrepreneurs hard rules, we get “may”-laden blather. This is necessary, she <a href=\"https://ambcrypto.com/crypto-spring-is-just-around-the-corner-says-secs-valerie-szczepanik/\">explained</a>, to do her job better: “The lack of bright-line rules allows regulators to be more flexible.”</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>SEC \"flexibility\" results in massive government power over the private sector</strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>This is true but has other effects. To start, it leaves regulators with massive discretion. It gives them enormous power over the economy with no responsibility for the results. It mandates entrepreneurs approach them hat-in-hand for permission. And it makes them sought after speakers on the conference circuit.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>But it’s a zero-sum game. Every unit of power Ms. Szczepanik reserves for herself and her colleagues removes it from job producers. Indeed, every ambiguous pronouncement shunts billable hours to lawyers and compliance professionals instead of research or marketing. Those building tomorrow’s economy need the flexibility not bureaucrats. They will power our future long after Ms. Szczepanik takes her professorship or retires to a nonprofit. </p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>In her taxpayer-funded conference appearances, where the commoners sometimes pay upwards of $1000 per ticket, <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Ms. Szczepanik</a> takes the same <a href=\"https://www.youtube.com/watch?v=PukteFAYWPo\">NPC posture</a> reflected in the guidance. As she repetitively recites the ‘facts and circumstances’ benchmark as applied to the <em>Howey Test</em> and so on.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=6wIsII3c9H8\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-16-9 wp-has-aspect-ratio\"} -->\r\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\r\n<div class=\"wp-block-embed__wrapper\">\r\n<p>[embed]https://www.youtube.com/watch?v=6wIsII3c9H8[/embed]</p>\r\n</div>\r\n<figcaption><strong>NPC Valerie in action </strong></figcaption>\r\n</figure>\r\n<!-- /wp:core-embed/youtube -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>The SEC could have chosen a \'Crypto Czar\' with private sector experience to guide agency decisions </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>What might a market-minded crypto czar have done different? Obviously, court precedent limits the SEC somewhat, but leeway exists within its own guidelines. One place might be trimming not expanding <em>Howey</em> mandates. For instance, the <em>Howey</em> case clearly states its securities test involves an exchange of money via arm’s-length transactions. Yet when startups give tokens away no exchange occurs. This is particularly true if the token receiver lacks foreknowledge. This should keep the exchange out of the SEC’s ambit. But the commission disagrees:</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Free tokens shouldn\'t be securities </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<blockquote>\r\n<p>The lack of monetary consideration for digital assets, such as those distributed via a so-called “bounty program” does not mean that the investment of money prong is not satisfied. And as the Commission explained in <em>The DAO</em> <em>Report</em>, “[i]n determining whether an investment contract exists, the investment of ‘money’ need not take the form of cash” and “in spite of <em>Howey’s </em>reference to an ‘investment of money,’ it is well established that cash is not the only form of contribution or investment that will create an investment contract.” <em>. . . </em>Further, the lack of monetary consideration for digital assets, such as those distributed via a so called “air drop,” does not mean that the investment of money prong is not satisfied; therefore, an airdrop may constitute a sale or distribution of securities. In a so-called “airdrop,” a digital asset is distributed to holders of another digital asset, typically to promote its circulation.</p>\r\n</blockquote>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>But how do people paying nothing and if fact unaware beforehand they are getting a token “purchase” a security? The SEC doesn’t say, although it describes them as “purchasers” throughout the document. It seems little harm to abjure a token received without any consideration, even if it might someday acquire value and be traded.  And with such value, later purchasers would rely on track record not mind-numbing risks few read. Fake value contrived through fraud is actionable on its own.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>SEC bureaucrats are harming the economy by not laying out clear rules   </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>This is not to criticize anyone personally. SEC personnel act in their own interests like everyone else because it benefits them to retain power while disclaiming away responsibility. Turf wars are fun when nothing’s at risk except ego. It is the not the individuals but the culture within the government that must change. It is what I’ve called <a href=\"http://www.thecrowdfundinglawyers.com/2019/03/14/cryptomom-versus-the-machine/\">the Machine</a>—the cabal of mostly Ivy League and east-coast lawyers and intellectuals who flock to Washington, embed in name-brand agencies, and end up producing useless documents that take six months and cost a quarter-million dollars.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Amy Winehouse saw what was coming </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Before her premature death, Amy Winehouse <a href=\"http://www.metrolyrics.com/valerie-lyrics-amy-winehouse.html\">sung</a> about the Machine in “Valerie.” Although ostensibly about reconnecting with a troubled companion, a deeper analysis reveals Ms. Winehouse’s prescience in crooning about the tensions between SEC bureaucrats and the economy builders of the future.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><em>Well, sometimes I go out by myself, And I look across the water . . . </em></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The water is the metaphorical gulf Ms. Winehouse recognized between entrepreneurs building the digital economy and SEC bureaucrats.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><em>And I think of all the things of what you\'re doing. In my head I paint a picture . . . </em></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Here Ms. Winehouse wondered what SEC bureaucrats could be doing that it took them six months to put out guidance a first-year associate could have produced in two days. What are they doing?</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Ms. Winehouse was always about the end game </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><em>Did you have to go to jail? Put your house out up for sale? Did you get a good lawyer?</em></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Here Ms. Winehouse referred to issuers <a href=\"http://www.thecrowdfundinglawyers.com/2019/02/15/sec-goes-for-kik-will-it-get-knifed/\">like Kik</a> who sold tokens in 2017 in the midst of the SEC’s uneven guidance. She referred to the need for these people avoid jail and get good lawyers lest the SEC use it unlimited resources to bankrupt them.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><em>Did you have to pay that fine? That you were dodging all the time? Are you still dizzy?</em></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Here she referenced to SEC Enforcement, which <a href=\"http://www.thecrowdfundinglawyers.com/2019/03/14/cryptomom-versus-the-machine/\">admits</a> it bullies companies into settlements warning them essentially, it has unlimited time and budgets because after all it has the power and “flexibility.” It made Ms. Winehouse dizzy.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><em>Why don’t you come on over Valerie?</em></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Here Ms. Winehouse pleas on behalf of the crypto community for crypto czars to take a break from nonstop taxpayer-funded travel and see what entrepreneurs are doing. And warning she may have to <a href=\"https://www.crowdfundinsider.com/2019/04/146185-updated-token-taxonomy-act-introduced-as-legislation-bill-is-designed-to-create-innovation-friendly-rules-for-digital-assets-including-non-security-tokens/\">involve Congress</a> if the SEC continues intransigently.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>So how about it, SEC? Come on over.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:core-embed/youtube {\"url\":\"https://www.youtube.com/watch?v=6pAz9UpnRKw\",\"type\":\"video\",\"providerNameSlug\":\"youtube\",\"className\":\"wp-embed-aspect-4-3 wp-has-aspect-ratio\"} -->\r\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio\">\r\n<div class=\"wp-block-embed__wrapper\">\r\n<p>[embed]https://www.youtube.com/watch?v=6pAz9UpnRKw[/embed]</p>\r\n</div>\r\n</figure>\r\n<!-- /wp:core-embed/youtube -->\r\n<!-- wp:paragraph -->\r\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via<a href=\"https://www.thecrowdfundinglawyers.com/\"> www.thecrowdfundinglawyers.com</a></p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph /-->','Amy Winehouse to Valerie Szczepanik: Come on over','','publish','open','open','','amy-winehouse-to-valerie-szczepanik-come-on-over','','','2020-12-04 14:51:19','2020-12-04 14:51:19','',0,'http://www.thecrowdfundinglawyers.com/?p=373',0,'post','',0),(379,1,'2019-05-05 17:56:00','2019-05-05 17:56:00','<!-- wp:paragraph -->\n<p>Last year I wrote a post titled <a href=\"http://www.thecrowdfundinglawyers.com/2018/05/01/finishing-up-year-two-as-an-entrepreneur/\">Finishing\nup Year Two as an Entrepreneur</a>. I’ll expand on this each year as the\nlessons I learn multiply. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Here are four things I’ve learned as an entrepreneur this past year: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li><strong>Success is an indicator you need to work harder</strong>. I’ve experienced my first breakthrough this year. It proves my model can work and is reassurance the lean times were bringing me towards something better—although to be sure, there have also been setbacks. Success should nourish your higher goals, not be an end in itself. </li><li><strong>Don’t go chasing waterfalls</strong>. If potential clients don’t sign within three months, it’s likely not going happen and the opportunity cost isn’t worth it. That doesn’t mean they won’t eventually sign, some will as they just need more time. But many won’t, although they seem interested, they may lack the intangibles necessary to complete a successful crowdfunding campaign and it’s better for both parties to move on. </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\">Entrepreneurs that look out for others help themselves in the long run</h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:list -->\n<ul><li><strong>Everybody is self-interested, but there must be more</strong>. The world runs on self-interest whether you work for yourself, a major corporation, a nonprofit, or the government. Unlike some sectors, entrepreneurs constantly get opportunities for partnerships, ally-ships, and cooperation with others within or outside their field. But if your only interest is how you benefit, it becomes obvious and results in a quick eyeroll/smirk combo. I’ve experienced more of this than I suspected. Caring and looking for ways to help others’ success comes back around eventually. </li><li><strong>Networking events are for networking</strong>. For us natural introverts, networking events can be stressful; lots hanging out by the refreshments and mindlessly checking our phones. Realizing most people are also experiencing some level of anxiety and are there for the same purpose can ease stress levels. The moments of initial awkwardness pass.&nbsp; You’re there to make connections, get leads, and expand your network. Take a deep breath and do it. Spending 15 minutes setting expectations and goals for yourself beforehand can get you in the right mindset to capitalize on your opportunity, which is what a networking event is. </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>\n\n\n\n\n\n\n\n\n\nBy <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey\nPLLC</a> via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->','Entering Year Four as an Entrepreneur','','publish','open','open','','entering-year-four-as-an-entrepreneur','','','2019-07-24 16:43:33','2019-07-24 16:43:33','',0,'http://www.thecrowdfundinglawyers.com/?p=379',0,'post','',0),(395,1,'2019-05-19 18:25:51','2019-05-19 18:25:51','<!-- wp:paragraph -->\n<p> Americans’ concerns abound. Will they get that raise? How are their kids doing in school? Is that ransomware email claiming recorded porn watching real? But one concern tops the rest. What is Securities and Exchange Commission ‘Senior Advisor for Digital Assets and Innovation’ Valerie Szczepanik, aka <a href=\"http://www.thecrowdfundinglawyers.com/2019/04/14/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC Valerie</a>, doing for her taxpayer-funded quarter-million dollar salary, benefits, cross-country junkets, and pension? Alas, the question on everyone’s mind has now penetrated the SEC’s highest levels via Commissioner Hester Peirce, aka <a href=\"http://www.thecrowdfundinglawyers.com/2019/03/14/cryptomom-versus-the-machine/\">Crypto Mom</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":2052,\"align\":\"center\",\"width\":448,\"height\":278} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/NPC-Valerie.jpg\" alt=\"NPC Valerie\" class=\"wp-image-2052\" width=\"448\" height=\"278\"/><figcaption><strong>NPC Valerie</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>NPC Valerie is the \'Machine\' personified&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Ms. Szczepanik is a card-carrying member of the ‘<a href=\"http://www.thecrowdfundinglawyers.com/2019/03/14/cryptomom-versus-the-machine/\">Machine</a>’:\nthe credential-and-prestige obsessed cabal of East Coast lawyers and\nfancy-degreed personages that land each year at name-brand federal agencies to\ndirect the American experiment while disclaiming responsibility for the\nresults. These personages don’t <em>do</em>\nanything. They exist to build media profiles, attend conferences, banquets,\nother soirees on the taxpayer dime.&nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Boredom or dollar signs eventually shunt most to an NGO,\nnonprofit, white-shoe law firm, lobbying shop, or other influence-peddling post.\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Yet, no one questions any of this. Since the <a href=\"https://dailycaller.com/2013/10/31/why-does-charles-krauthammer-love-the-new-deal/\">New Deal</a>, it’s the price the intellectual class has imposed on us for the privilege of being Americans.  But given the stakes and potential blockchain and digital currencies proffer, some have grown annoyed with SEC Machine protocol. <a href=\"https://www.crowdfundinsider.com/\">Crowdfund Insider</a> a house organ for Machine securities lawyers <a href=\"https://www.crowdfundinsider.com/2019/05/146775-has-the-sec-slammed-the-brakes-on-blockchain-innovation/\">recently criticized</a> Chairman Jay Clayton’s leadership.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Crypto Mom is the lone voice challenging NPC Valerie and the \'Machine\'&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:image {\"id\":2049,\"align\":\"center\",\"width\":476,\"height\":297} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/cryptomom-1.png\" alt=\"Crypto Mom\" class=\"wp-image-2049\" width=\"476\" height=\"297\"/><figcaption><strong>Crypto Mom</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>But as someone more concerned with the U.S. economy than state dinners, Crypto Mom’s criticism is more weighted.. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In <a href=\"https://www.crowdfundinsider.com/2019/05/147252-like-a-jackson-pollock-painting-sec-commissioner-hester-peirce-criticizes-commissions-approach-to-digital-assets-says-it-has-stifled-growth/\">describing</a> the SEC’s crypto Rube Goldberg guidance, she aims straight, even at NPC-in-charge, Ms. Szczepanik. Moreover, she skewers the Commission’s years-long refusal to approve any Reg A+ token sales. And her plain English comments, lacking hide-the-ball cant surely had SEC staff scrambling to decode her <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/05/SEC-Hester-Peirce-How-We-Howey.pdf\">message</a>:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Crypto Mom unloads on SEC crypto guidance mess</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>The SEC staff recently <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">issued a framework </a>to assist issuers with conducting a <em>Howey</em> analysis of potential token offerings. The document is a thorough 14 pages. It points to features of an offering and actions by an issuer that could signal that the offering is likely a securities offering. If this framework helps issuers understand what the different <em>Howey</em> Factors might look like in an ICO context, it may be valuable. I am concerned, however, that it could raise more questions and concerns than it answers.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>While <em>Howey</em> has four factors to consider, the framework lists 38 separate considerations, many of which include several sub-points. A seasoned securities lawyer might be able to infer which of these considerations will likely be controlling and might therefore be able to provide the appropriate weight to each. Whether the framework gives anything new to the seasoned securities lawyer used to operating in the facts and circumstances world of <em>Howey</em> is an open question. I worry that non-lawyers and lawyers not steeped in securities law and its attendant lore will not know what to make of the guidance. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Pages worth of factors, many of which seemingly apply to all decentralized networks, might contribute to the feeling that navigating the securities laws in this area is perilous business . . . </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:image {\"id\":398,\"align\":\"center\",\"width\":589,\"height\":332} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-2.gif\" alt=\"\" class=\"wp-image-398\" width=\"589\" height=\"332\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Crypto Mom: TurnKey Jet No-Action Letter Should Not Have Been Published&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>This transaction is so clearly not an offer of securities that I worry the staff’s issuance of a digital token no-action letter—the first and so far only such letter—may in fact have the effect of broadening the perceived reach of our securities laws. If these tokens were securities, it would be hard to distinguish them from any medium of stored value. Is a Starbucks card a security? If we are going that far, I can only imagine what name the barista will write on my coffee cup</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>And yet, the staff’s letter did not stop at merely stating that the token offering would not qualify as a securities offering, but highlighted specific but non-dispositive factors. In other words, the letter effectively imposed conditions on a non-security . . . </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>I do not believe there was anything gray about the area in which TurnKey planned to operate, but issuing this letter may give the false impression that there was.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Lack of Reg A+ token sales is a glaring SEC failure </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Unlike a private offering, however, a Regulation A offering must be qualified by the SEC before the issuer can begin raising money. Although several companies seeking to issue tokens have begun the process, none has yet had its Regulation A offerings qualified. The lack of progress is not only difficult for the companies that remain in limbo, unable to move forward with raising capital, but also may scare off other companies. These companies may opt for a private offering instead, depriving the general public of the opportunity to invest, and also depriving the market of the public disclosure of the information included in the Regulation A offering materials</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>It would be nice to think Crypto Mom’s criticisms will spur some paradigm shift in SEC protocol. But that is as likely as the Commission declaring itself a separate country. Crypto Mom’s name came from her distinct stances. And even another three commissioner-level crypto moms would little effect. They would battle—directly or discreetly—the hordes of NPC Valeries roaming the Commission’s austere halls. Indeed, staff controls most chores because little jumps to commissioner level and still less gets to Congress. For now, we must hope Crypto Mom continues Crypto Momming and some crypto dust infiltrates Commission thinking. One can hope. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>\nvia <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a>\n</p>\n<!-- /wp:paragraph -->','Crypto Mom to NPC Valerie: Get a Job','','publish','open','open','','crypto-mom-to-npc-valerie-get-a-job','','','2019-08-15 19:17:14','2019-08-15 19:17:14','',0,'http://www.thecrowdfundinglawyers.com/?p=395',0,'post','',0),(398,1,'2019-05-19 17:59:38','2019-05-19 17:59:38','','dwight-2','','inherit','open','closed','','dwight-2-2','','','2019-05-19 17:59:38','2019-05-19 17:59:38','',395,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-2.gif',0,'attachment','image/gif',0),(414,1,'2019-05-24 22:15:20','2019-05-24 22:15:20','<!-- wp:image {\"id\":353,\"align\":\"left\",\"width\":332,\"height\":221} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/03/Jay-Clayton.jpg\" alt=\"\" class=\"wp-image-353\" width=\"332\" height=\"221\"/><figcaption><strong>Shallow-End Jay</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>No one ever mistook SEC Chairman Jay Clayton for a daredevil. He didn’t spend his youth bungee jumping, drag racing, or venturing to the deep end of the neighborhood pool. In fact, he is the staid, strait-laced embodiment of <a href=\"http://www.thecrowdfundinglawyers.com/2019/03/14/cryptomom-versus-the-machine/\">the Machine</a>: the credential-and-prestige obsessed cabal of East Coast lawyers and fancy-degreed personages that land each year at name-brand federal agencies to pilot the American economy while disclaiming responsibility for the results.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Increasingly those who did jump (literally and figuratively) —the risk-taking disruptors creating the new American economy—are complaining about Mr. Clayton’s stifling edicts. These daredevils include Circle founder and CEO Jeremy Allaire who recently <a href=\"https://www.crowdfundinsider.com/2019/05/147641-circle-fires-30-employees-due-to-restrictive-regulatory-climate-in-the-us/\">laid off</a> 10% of his workers blaming “an increasingly restrictive regulatory climate in the United States.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Criticism of \"Shallow-End Jay\" is usually reserved for those \"speaking on condition of anonymity\" </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>A pusillanimous group of insiders are also <a href=\"https://www.crowdfundinsider.com/2019/05/146775-has-the-sec-slammed-the-brakes-on-blockchain-innovation/\">panning</a> \"Shallow-End Jay\" from the safety of anonymity. . After quoting several anonymous sources, Crowdfund Insider recently <a href=\"https://www.crowdfundinsider.com/2019/05/146775-has-the-sec-slammed-the-brakes-on-blockchain-innovation/\">declared</a>, “Some people believe that Chair Clayton simply wants to dodge a bullet and exit before the next election cycle hits in full force. He would prefer to end his tenure at the SEC minus any major catastrophes, imaginary or not.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So \"Shallow-End Jay\" may be stalling  the future of the U.S. economy to ensure the best possible post-SEC landing spot. Why settle for the sticky, dirty U. Penn when Harvard may call? </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>SEC\'s failure to fix Reg CF has been glaring&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>, which crossed <a href=\"https://www.crowdfundinsider.com/2019/05/147569-three-years-of-reg-cf-44-funding-portals-9-departures-1-suspension-200-million-raised/\">year three</a> this month is one area where SEC paralysis is blatant. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> was supposed to revolutionize small-business capitalization. Indeed, President Obama <a href=\"http://www.thecrowdfundinglawyers.com/2018/05/16/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">described</a> it as a “game changer” when he signed the JOBS Act into law seven years ago. For the first time, the potential for massive returns would be available to everyone, not just a network of venture capitalists and investment bankers. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>On the surface <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> seems to be performing swimmingly: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Commitments: $217,383,649 raised since May 2016 </li><li>Investors: 234,883</li><li>Campaigns: 1,640 </li><li>Average Raise: $219,382 </li><li>Jobs Supported: 8,690   </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"id\":415,\"align\":\"center\",\"width\":778,\"height\":614} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/CFgraph.png\" alt=\"\" class=\"wp-image-415\" width=\"778\" height=\"614\"/><figcaption><strong>Source for numbers and graph: Crowdfund Capital Advisors</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>But in reality, it’s sinking. And the dead weights are manifest and known within the trade media, the SEC, and the broader government. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":417,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-3.gif\" alt=\"\" class=\"wp-image-417\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>In March 2017, Edward Knight, Executive Vice President and General Counsel of NASDAQ <a href=\"http://www.thecrowdfundinglawyers.com/2018/05/16/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">testified</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>From the outset the SEC’s view of [Reg CF] was they were not for this they and made it, shall I say, needlessly complicated and did not approach it except as this this was something where the public is going to get harmed and we need to narrow it as much as possible.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Just six months later the U.S. Treasury <a href=\"https://www.treasury.gov/press-center/press-releases/Documents/A-Financial-System-Capital-Markets-FINAL-FINAL.pdf\">recommended</a> several improvements, but thus far neither the SEC nor Congress has acted. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>\"Shallow-End Jay\" and the SEC may finally be acting </strong> </h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But help may be near. Corp Fin’s Bill Hinman recently <a href=\"https://www.crowdfundinsider.com/2019/05/147241-sec-director-of-corpfin-bill-hinman-provides-crowdfunding-update-at-small-business-capital-formation-advisory-committee-meeting/\">acknowledged</a> Reg CF’s shortcomings. Apparently, the SEC will soon publish its own Reg CF (and Reg A+) recommendations to increase their vitality and by doing so expand investment opportunity and brighten economic outlook.  Yet the SEC can juice Reg CF with little effort. According to Mr. Hinman some of these reforms are on the SEC’s radar: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Raise the limit from the nonsensical $1.07M</li><li>Increase individual limits</li><li>Remove the limit for accredited investors</li><li>Relax the solicitation rules </li><li>Allow Special Purpose Vehicles</li><li>Allow CEOs to sign off on financial statements</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>These fixes would have a tremendous impact on Reg CF and still provide Shallow-End Jay a soft landing at the Harvard of his choice.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> &nbsp;via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->','\"Shallow-End Jay\" treads water while Reg CF sinks, but is help on the way?','','publish','open','open','','shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way','','','2019-08-15 19:11:21','2019-08-15 19:11:21','',0,'http://www.thecrowdfundinglawyers.com/?p=414',0,'post','',0),(415,1,'2019-05-24 21:57:17','2019-05-24 21:57:17','','CFgraph','','inherit','open','closed','','cfgraph','','','2019-05-24 21:57:17','2019-05-24 21:57:17','',414,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/CFgraph.png',0,'attachment','image/png',0),(417,1,'2019-05-24 22:04:50','2019-05-24 22:04:50','','dwight-3','','inherit','open','closed','','dwight-3','','','2019-05-24 22:04:50','2019-05-24 22:04:50','',414,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-3.gif',0,'attachment','image/gif',0),(429,1,'2019-06-09 02:13:18','2019-06-09 02:13:18','[et_pb_section fb_built=\"1\" custom_padding_last_edited=\"on|desktop\" _builder_version=\"4.6.5\" background_color=\"#474747\" background_enable_image=\"off\" parallax=\"on\" background_video_mp4=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/moneyvideo.mp4\" min_height_tablet=\"\" min_height_phone=\"\" min_height_last_edited=\"on|phone\" custom_margin=\"||-2px|||\" custom_padding=\"200px||200px||true|false\" custom_padding_tablet=\"100px||100px||true|false\" custom_padding_phone=\"0px||0px||true|false\"][et_pb_row column_structure=\"1_3,1_3,1_3\" make_equal=\"on\" _builder_version=\"4.6.5\" _module_preset=\"default\" max_width=\"1280px\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" module_alignment=\"center\" min_height_tablet=\"\" min_height_phone=\"\" min_height_last_edited=\"on|desktop\" custom_margin_tablet=\"\" custom_margin_phone=\"\" custom_margin_last_edited=\"on|phone\" border_color_all=\"rgba(255,255,255,0.42)\"][et_pb_column type=\"1_3\" _builder_version=\"4.6.5\" _module_preset=\"default\" background_color=\"#ffffff\" use_background_color_gradient=\"on\" background_color_gradient_start=\"#1c398c\" background_color_gradient_end=\"#002c59\" background_color_gradient_type=\"radial\" background_enable_image=\"off\" background_blend=\"overlay\" custom_padding=\"40px|20px|40px|20px|false|false\" link_option_url=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\" border_width_all=\"5px\" border_color_all=\"rgba(255,255,255,0.5)\" border_width_top=\"5px\" border_color_top=\"#001249\" border_style_top=\"groove\" border_width_bottom=\"5px\" border_color_bottom=\"#001249\"][et_pb_text _builder_version=\"4.6.5\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#e09900\" header_font_size=\"42px\" header_2_text_color=\"#dfb758\" header_2_font_size=\"36px\" header_3_text_color=\"#ffffff\" header_3_font_size=\"28px\" text_orientation=\"center\" custom_padding=\"30px||||false|false\"]<h2 class=\"et_pb_module_header\">Is crowdfunding<br />right for<br />your business?</h2>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"4.6.5\" _module_preset=\"default\" background_color=\"#ffffff\" use_background_color_gradient=\"on\" background_color_gradient_start=\"#1c398c\" background_color_gradient_end=\"#002c59\" background_color_gradient_type=\"radial\" background_enable_image=\"off\" background_blend=\"overlay\" custom_padding=\"40px|20px|40px|20px|false|false\" link_option_url=\"https://www.thecrowdfundinglawyers.com/cfl-landing/\" border_width_all=\"5px\" border_color_all=\"rgba(255,255,255,0.5)\" border_width_top=\"5px\" border_color_top=\"#001249\" border_style_top=\"groove\" border_width_bottom=\"5px\" border_color_bottom=\"#001249\"][et_pb_text _builder_version=\"4.6.5\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#e09900\" header_font_size=\"42px\" header_2_text_color=\"#dfb758\" header_2_font_size=\"36px\" header_3_text_color=\"#ffffff\" header_3_font_size=\"28px\" text_orientation=\"center\" custom_padding=\"30px||||false|false\"]<h2>Equity<br />Crowdfunding<br />Package</h2>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"4.6.5\" _module_preset=\"default\" background_color=\"#ffffff\" use_background_color_gradient=\"on\" background_color_gradient_start=\"#1c398c\" background_color_gradient_end=\"#002c59\" background_color_gradient_type=\"radial\" background_enable_image=\"off\" background_blend=\"overlay\" custom_padding=\"40px|20px|40px|20px|false|false\" link_option_url=\"https://www.thecrowdfundinglawyers.com/successful-raises/\" border_width_all=\"5px\" border_color_all=\"rgba(255,255,255,0.5)\" border_width_top=\"5px\" border_color_top=\"#001249\" border_style_top=\"groove\" border_width_bottom=\"5px\" border_color_bottom=\"#001249\"][et_pb_text _builder_version=\"4.6.5\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#e09900\" header_font_size=\"42px\" header_2_text_color=\"#dfb758\" header_2_font_size=\"36px\" header_3_text_color=\"#ffffff\" header_3_font_size=\"28px\" text_orientation=\"center\" custom_padding=\"30px||||false|false\" link_option_url=\"https://www.thecrowdfundinglawyers.com/successful-raises/\"]<h2 class=\"et_pb_module_header\">Successful Raises</h2>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"4.6.3\" _module_preset=\"default\" custom_padding=\"0px||0px||false|false\" border_width_bottom=\"1px\" border_color_bottom=\"#dddddd\"][et_pb_row use_custom_gutter=\"on\" gutter_width=\"1\" _builder_version=\"4.6.3\" _module_preset=\"default\" width=\"100%\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width=\"98%\" module_alignment=\"center\" max_width__hover_enabled=\"on|desktop\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.3\" _module_preset=\"default\"][et_pb_text admin_label=\"Crypto Ticker\" _builder_version=\"4.6.3\" _module_preset=\"default\"]<p>[cryptopack 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module_alignment=\"left\" min_height_tablet=\"\" min_height_phone=\"\" min_height_last_edited=\"on|phone\" custom_margin_tablet=\"\" custom_margin_phone=\"\" custom_margin_last_edited=\"on|desktop\" custom_padding_tablet=\"\" custom_padding_phone=\"\" custom_padding_last_edited=\"on|desktop\" module_alignment_tablet=\"center\" module_alignment_phone=\"center\" module_alignment_last_edited=\"on|desktop\"]<p>[custom-twitter-feeds]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds hashtag=\"#crowdfunding\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" 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box_shadow_style_button=\"preset7\" width=\"99.8%\" animation_style=\"zoom\" animation_duration=\"1600ms\" animation_intensity_zoom=\"75%\" text_shadow_style=\"preset1\" text_shadow_color=\"#000000\" title=\"Choose Your Equity Crowdfunding Package Now\" button_text=\"Get Started\" _builder_version=\"3.23.3\" button_url=\"thecrowdfunginlawyers.com\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_font_size=\"37px\" header_text_shadow_vertical_length=\"0.37em\" header_text_shadow_blur_strength=\"0.32em\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" button_font=\"|||||on|||\" button_alignment=\"center\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" box_shadow_spread=\"13px\" header_line_height=\"1.6em\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" 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header_line_height=\"1.6em\" header_text_shadow_style=\"preset2\" header_text_shadow_vertical_length=\"0.37em\" header_text_shadow_blur_strength=\"0.32em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" custom_button=\"on\" button_text_size=\"36px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" 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width=\"100%\" max_width=\"100%\" min_height=\"1000px\" height=\"713px\" max_height=\"318px\" custom_padding=\"|||12px\"]<iframe src=\"https://promote.disclosurequest.com/widget?size=4\" frameborder=\"0\" scrolling=\"no\" height=\"1300px\" width=\"300px\"></iframe>[/et_pb_code][et_pb_sidebar orientation=\"right\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_color=\"#a8150d\" header_font_size=\"22px\" body_font=\"Black Ops One|||||on|||\" text_orientation=\"left\" width=\"100%\" max_width=\"100%\" min_height=\"1000px\" height=\"999px\" max_height=\"825px\" custom_padding=\"307px||\"][/et_pb_sidebar][/et_pb_column][/et_pb_row]','New Home Middle','','publish','closed','closed','','new-home-middle','','','2019-06-09 00:28:15','2019-06-09 00:28:15','',0,'http://www.thecrowdfundinglawyers.com/et_pb_layout/new-home-middle/',0,'et_pb_layout','',0),(704,1,'2019-06-09 00:28:52','2019-06-09 00:28:52','[et_pb_section fb_built=\"1\" _builder_version=\"3.24\" 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_builder_version=\"3.24\"][et_pb_text _builder_version=\"3.24\"]<p>[custom-twitter-feeds hashtag=\"#crypto\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"3.24\"][et_pb_text _builder_version=\"3.24\" width=\"100%\"]<p>[custom-twitter-feeds screenname=\"SEC_News\"]</p>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]','New Home Footer','','publish','closed','closed','','new-home-footer','','','2019-06-09 00:28:52','2019-06-09 00:28:52','',0,'http://www.thecrowdfundinglawyers.com/et_pb_layout/new-home-footer/',0,'et_pb_layout','',0),(752,1,'2019-06-09 16:02:08','2019-06-09 16:02:08','','Logo 6','','inherit','open','closed','','logo-6','','','2019-06-09 16:02:08','2019-06-09 16:02:08','',0,'http://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Logo-6.png',0,'attachment','image/png',0),(807,1,'2019-06-10 16:20:09','2019-06-10 16:20:09','','Global Footer','','publish','closed','closed','','global-footer','','','2019-06-14 02:37:20','2019-06-14 02:37:20','',0,'https://www.thecrowdfundinglawyers.com/et_pb_layout/global-footer/',0,'et_pb_layout','',0),(818,1,'2019-06-10 17:46:08','2019-06-10 17:46:08','[et_pb_cta use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" width=\"28%\" title=\"Reg CF\" button_text=\"Learn more\" _builder_version=\"3.24\" button_url=\"mo\" template_type=\"module\"]<ul>\n<li>Raise up to $1.07M</li>\n<li>Personal Introduction to portal intermediaries that sell securities</li>\n<li>Potential Exposure to hundreds of thousands of investors and clients</li>\n<li>All corporate governance creation, preperation, and/or modifcation as needed</li>\n<li>Guidance on various types of securities</li>\n<li>Ongoing advice once raise is live on marketing, regulatory, corporate and compliance</li>\n<li>Flat fee</li>\n</ul>\n[/et_pb_cta]','Reg CF Call to action','','publish','closed','closed','','reg-cf-call-to-action','','','2019-06-10 17:46:08','2019-06-10 17:46:08','',0,'https://www.thecrowdfundinglawyers.com/et_pb_layout/reg-cf-call-to-action/',0,'et_pb_layout','',0),(926,1,'2019-06-11 21:59:40','2019-06-11 21:59:40','[et_pb_section fb_built=\"1\" _builder_version=\"3.24\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/CFpng.png\" parallax=\"on\" height=\"1554px\" max_height=\"1555px\" template_type=\"section\"][et_pb_row use_custom_gutter=\"on\" gutter_width=\"4\" make_equal=\"on\" _builder_version=\"3.24\"][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg A+\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg A+\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_font_size=\"67px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top right\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\" height=\"1200px\" header_text_color=\"#a8150d\" header_letter_spacing=\"4px\"]<p style=\"text-align: center;\">Raise up to $50M</p>\n<p><strong>Pre Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries or Broker Dealers</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as needed</li>\n<li style=\"text-align: left;\">Guidance on various types of securities</li>\n<li style=\"text-align: left;\">Substantial Up Front Costs in SEC Qualifacation Process</li>\n<li style=\"text-align: left;\">Potential Exposure to hundreds of thousands of investors and clients</li>\n</ul>\n<p><strong>During Raise</strong></p>\n<ul>\n<li style=\"text-align: left;\">Ongoing compliance and regulatory advice</li>\n<li style=\"text-align: left;\">Flat Fee</li>\n</ul>\n<p><strong>Post Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package available for subsequnet 12 months.</li>\n<li style=\"text-align: left;\">Ongoing SEC reporting requirements</li>\n</ul>\n<p>&nbsp;</p>\n[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg CF\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg CF\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_font_size=\"67px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" header_letter_spacing=\"4px\" height=\"1200px\" button_custom_margin=\"113px||\" header_text_color=\"#a8150d\"]<p style=\"text-align: center;\">Raise up to $1.07M</p>\n<p><strong>Pre Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as neede</li>\n<li style=\"text-align: left;\">Guidance on various types of securities</li>\n</ul>\n<p><strong>During Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Ongoing advice once raise is live on marketing, regulatory, corporate and compliance</li>\n<li style=\"text-align: left;\">Potential Exposure to hundreds of thousands of investors and customers</li>\n<li style=\"text-align: left;\">Flat Fee - $3k (discount available)</li>\n</ul>\n<p><strong>Post Raise </strong></p>\n<p><strong></strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package availabe, includes SEC Annual Report</li>\n</ul>\n[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg D\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg D\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_font_size=\"67px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" height=\"1200px\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top left\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" header_letter_spacing=\"4px\" button_custom_margin=\"187px||\" header_text_color=\"#a8150d\"]<p style=\"text-align: center;\">Raise Unlimited Amount From Accredited Investors Only</p>\n<p><strong>Pre-Raise</strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries or Broker Dealers</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as needed</li>\n<li style=\"text-align: left;\">Notice Filing with SEC and at State Level</li>\n</ul>\n<p><strong>During Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Private Placement Memorandum</li>\n<li style=\"text-align: left;\">General Solicitation Available</li>\n<li style=\"text-align: left;\">Flat fee</li>\n</ul>\n<p><strong> Post Raise</strong></p>\n<p><strong></strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package available</li>\n</ul>\n[/et_pb_cta][/et_pb_column][/et_pb_row][et_pb_row use_custom_gutter=\"on\" gutter_width=\"3\" custom_padding=\"|||0px\" padding_right_1=\"177px\" padding_left_2=\"177px\" _builder_version=\"3.24\" width=\"87.8%\" module_alignment=\"center\"][et_pb_column type=\"1_2\" _builder_version=\"3.24\"][et_pb_button button_text=\"Is Equity Crowdfunding Right For Your Company?\" button_alignment=\"center\" admin_label=\"Button\" _builder_version=\"3.24\" custom_button=\"on\" button_text_size=\"32px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Black Ops One|700||||on|||\" button_icon=\"%%24%%\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\"][/et_pb_button][/et_pb_column][et_pb_column type=\"1_2\" _builder_version=\"3.24\"][et_pb_button button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"3.24\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Black Ops One|700||||on|||\" button_icon=\"%%24%%\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\"][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]','Saved Landing 2','','publish','closed','closed','','saved-landing-2','','','2019-06-11 21:59:40','2019-06-11 21:59:40','',0,'https://www.thecrowdfundinglawyers.com/et_pb_layout/saved-landing-2/',0,'et_pb_layout','',0),(931,1,'2019-06-12 16:07:37','2019-06-12 16:07:37','[et_pb_section fb_built=\"1\" _builder_version=\"3.24\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/CFpng.png\" parallax=\"on\" height=\"1554px\" max_height=\"1555px\" template_type=\"section\"][et_pb_row use_custom_gutter=\"on\" gutter_width=\"4\" make_equal=\"on\" _builder_version=\"3.24\"][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg A+\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg A+\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_text_color=\"#a8150d\" header_font_size=\"67px\" header_letter_spacing=\"4px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top right\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" height=\"1174px\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\" button_custom_margin=\"-41px||0px\"]<p style=\"text-align: center;\">Raise up to $50M</p>\n<p><strong>Pre Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries or Broker Dealers</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as needed</li>\n<li style=\"text-align: left;\">Guidance on various types of securities</li>\n<li style=\"text-align: left;\">Substantial Up Front Costs in SEC Qualifacation Process</li>\n<li style=\"text-align: left;\">Potential Exposure to hundreds of thousands of investors and clients</li>\n</ul>\n<p><strong>During Raise</strong></p>\n<ul>\n<li style=\"text-align: left;\">Ongoing compliance and regulatory advice</li>\n<li style=\"text-align: left;\">Flat Fee</li>\n</ul>\n<p><strong>Post Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package available for subsequnet 12 months.</li>\n<li style=\"text-align: left;\">Ongoing SEC reporting requirements</li>\n</ul>\n<p>&nbsp;</p>\n[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg CF\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg CF\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_text_color=\"#a8150d\" header_font_size=\"67px\" header_letter_spacing=\"4px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" button_custom_margin=\"74px||\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" height=\"1174px\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\"]<p style=\"text-align: center;\">Raise up to $1.07M</p>\n<p><strong>Pre Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as neede</li>\n<li style=\"text-align: left;\">Guidance on various types of securities</li>\n</ul>\n<p><strong>During Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Ongoing advice once raise is live on marketing, regulatory, corporate and compliance</li>\n<li style=\"text-align: left;\">Potential Exposure to hundreds of thousands of investors and customers</li>\n<li style=\"text-align: left;\">Flat Fee - $3k (discount available)</li>\n</ul>\n<p><strong>Post Raise </strong></p>\n<p><strong></strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package availabe, includes SEC Annual Report</li>\n</ul>\n[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.24\"][et_pb_cta title=\"Reg D\" button_url=\"http://mo\" url_new_window=\"on\" button_text=\"Learn more about Reg D\" _builder_version=\"3.24\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_text_color=\"#a8150d\" header_font_size=\"67px\" header_letter_spacing=\"4px\" header_line_height=\"1.6em\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.09em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#000000\" body_font=\"Black Ops One|700||||on|||\" body_text_align=\"center\" body_font_size=\"23px\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"top left\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"|||||on|||\" button_icon=\"%%24%%\" button_alignment=\"center\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" button_custom_margin=\"156px||\" box_shadow_style=\"preset1\" box_shadow_spread=\"13px\" box_shadow_color=\"#000000\" box_shadow_style_button=\"preset7\" box_shadow_horizontal_button=\"11px\" box_shadow_vertical_button=\"4px\" box_shadow_blur_button=\"37px\" width=\"99.8%\" height=\"1181px\" animation_style=\"zoom\" animation_duration=\"700ms\" animation_delay=\"450ms\" animation_intensity_zoom=\"80%\" text_shadow_style=\"preset1\" text_shadow_vertical_length=\"0.41em\" text_shadow_blur_strength=\"0.26em\" text_shadow_color=\"#000000\" header_font_size_phone=\"26px\" header_font_size_last_edited=\"on|phone\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|phone\"]<p style=\"text-align: center;\">Raise Unlimited Amount From Accredited Investors Only</p>\n<p><strong>Pre-Raise</strong></p>\n<ul>\n<li style=\"text-align: left;\">Personal Introduction to portal intermediaries or Broker Dealers</li>\n<li style=\"text-align: left;\">All corporate governance creation, preparation, and/or modification as needed</li>\n<li style=\"text-align: left;\">Notice Filing with SEC and at State Level</li>\n</ul>\n<p><strong>During Raise </strong></p>\n<ul>\n<li style=\"text-align: left;\">Private Placement Memorandum</li>\n<li style=\"text-align: left;\">General Solicitation Available</li>\n<li style=\"text-align: left;\">Flat fee</li>\n</ul>\n<p><strong> Post Raise</strong></p>\n<p><strong></strong></p>\n<ul>\n<li style=\"text-align: left;\">General Counsel Package available</li>\n</ul>\n[/et_pb_cta][/et_pb_column][/et_pb_row][et_pb_row use_custom_gutter=\"on\" gutter_width=\"1\" custom_padding=\"|||0px\" padding_right_1=\"177px\" padding_left_2=\"177px\" _builder_version=\"3.24\" width=\"87.8%\" module_alignment=\"center\" custom_margin=\"12px||\"][et_pb_column type=\"1_2\" _builder_version=\"3.24\"][et_pb_button button_text=\"Is Equity Crowdfunding Right For Your Company?\" button_alignment=\"center\" admin_label=\"Button\" _builder_version=\"3.24\" custom_button=\"on\" button_text_size=\"32px\" button_text_color=\"#ffffff\" 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screenname=\"SEC_News\"]</p>\n[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]','Global Footer 2','','publish','closed','closed','','global-footer-2','','','2019-06-14 02:41:44','2019-06-14 02:41:44','',0,'https://www.thecrowdfundinglawyers.com/et_pb_layout/global-footer-2/',0,'et_pb_layout','',0),(1156,1,'2019-06-15 17:40:37','2019-06-15 17:40:37','','Crowdfunding Comparisons','','inherit','open','closed','','crowdfunding-comparisons','','','2019-06-15 17:40:37','2019-06-15 17:40:37','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Crowdfunding-Comparisons.jpg',0,'attachment','image/jpeg',0),(1158,1,'2019-06-15 17:41:11','2019-06-15 17:41:11','','Geographic Comparison','','inherit','open','closed','','geographic-comparison','','','2019-06-15 17:41:11','2019-06-15 17:41:11','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Geographic-Comparison.jpg',0,'attachment','image/jpeg',0),(1159,1,'2019-06-15 17:41:26','2019-06-15 17:41:26','','Industry Comparsion','','inherit','open','closed','','industry-comparsion','','','2019-06-15 17:41:26','2019-06-15 17:41:26','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Industry-Comparsion-.jpg',0,'attachment','image/jpeg',0),(1203,1,'2019-06-16 02:31:16','2019-06-16 02:31:16','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.4\" _module_preset=\"default\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/crowdfundingoptions.jpg\" background_position=\"top_center\" custom_padding=\"100px||100px||false|false\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.4\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#ffffff\" header_2_text_color=\"#ffffff\" header_3_text_color=\"#ffffff\" header_text_shadow_style=\"preset1\" header_text_shadow_color=\"rgba(0,0,0,0.9)\" header_2_text_shadow_style=\"preset1\" header_2_text_shadow_color=\"rgba(0,0,0,0.75)\"]<h1>Reg A+</h1>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"3.24.1\"][et_pb_row column_structure=\"2_3,1_3\" _builder_version=\"3.25\"][et_pb_column type=\"2_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text admin_label=\"Text\" _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"52px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_color=\"#890f01\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" custom_padding=\"||0px|||\" hover_enabled=\"0\" locked=\"off\" sticky_enabled=\"0\" module_alignment=\"left\"]<h1>Reg A+</h1>\n<p><!-- wp:paragraph --><strong>President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 after receiving overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller businesses raise capital through innovative rules and regulatory rollback. The SEC began implementing the law in 2013, Reg A+ was finalized in 2015.   </strong></p>\n<p><!-- /wp:paragraph --></p>\n<p><!-- wp:heading {\"align\":\"center\"} --></p>\n<h2 style=\"text-align: center;\"><span style=\"color: #890604;\">Reg A+ Basics</span></h2>\n<p><!-- /wp:heading --></p>\n<p><!-- wp:list --></p>\n<ul>\n<li><strong>Two-tiered crowdfunding mechanism that also serves as a public-offering onramp for smaller issuers </strong></li>\n<li><strong>Tier I: Issuers can raise up to $20 million from accredited and nonaccredited investors. Issuers have relatively small upfront accounting burdens during qualification but are subject to a state-level “coordinated review process” </strong></li>\n<li><strong>Tier II: Issuers can raise up to $50 million from accredited and nonacredited investors. Issuers face higher upfront accounting burdens but raises are preempted from state-level qualification (but not notice or fees) </strong></li>\n<li><strong>Issuers can “test the waters” to gauge interest without incurring substantial accounting or legal fees.</strong></li>\n<li><strong>Finanical instruments can be sold and underwitten by broker dealers </strong></li>\n<li><strong>Financial instruments are unrestricted (freely tradable) although issuers may choose to impose contractual transfer restrictions and state-level ambiguity exists</strong></li>\n<li><strong>Complex SEC qualification process </strong></li>\n</ul>\n<p><!-- /wp:list --></p>\n<p><!-- wp:heading {\"align\":\"center\"} --></p>\n<h2 style=\"text-align: center;\"><span class=\"tadv-color\" style=\"color: #890200;\"><strong>Reg A+ So Far</strong></span></h2>\n<p><!-- /wp:heading --></p>\n<p><!-- wp:list --></p>\n<ul>\n<li><strong>Since the new Reg A+ rules went effective in June 2015 and through September 2018, 123 public offerings were completed raising a total of $1.3 billion. That\'s an average of about $10 million raised per deal since 2015.</strong></li>\n<li><strong> Total funding in the last year more than doubled the total amount raised though Reg A+ offerings from the two years before. In other words, $612 million raised between June 2015 and September 2017 and another $688 million raised just in the one year ended September 2018. </strong></li>\n<li><strong> The average deal size increased notably to $12.7 million in the year ended September 2018 vs. $8.8 million in the two years ended September 2017. That\'s a 44% increase in the average deal size. (Source: </strong><a href=\"http://www.mondaq.com/unitedstates/x/754620/Securities/Funding+In+Regulation+A+Offerings+Doubles\"><strong>Mondaq</strong></a><strong>)</strong></li>\n<li><strong>Treasury Department recently stated, “Regulation A+ has enabled more companies to take advantage of the ‘mini IPO’ process than under the previously existing Regulation A registration exemption for small offerings. A Tier II offering may be less costly than an IPO, particularly for companies seeking relatively smaller amounts of capital.”</strong></li>\n</ul>\n<p><!-- /wp:list --></p>\n<p><!-- wp:image {\"id\":202,\"align\":\"center\",\"width\":996,\"height\":425} --></p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-202\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-2.png\" alt=\"\" width=\"996\" height=\"425\" /></figure>\n</div>\n<p><!-- /wp:image --></p>\n<p><!-- wp:image {\"id\":201,\"align\":\"center\",\"width\":1012,\"height\":433} --></p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-201\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-1.png\" alt=\"\" width=\"1012\" height=\"433\" /></figure>\n<p>&nbsp;</p>\n</div>\n<p><!-- /wp:image --></p>\n<p><!-- wp:heading {\"align\":\"center\"} --></p>\n<h2 style=\"text-align: center;\"><span class=\"tadv-color\" style=\"color: #890200;\"><strong>Future Reg A+ Fixes</strong></span></h2>\n<p><!-- /wp:heading --></p>\n<p><!-- wp:list --></p>\n<ul>\n<li><strong>Expand Reg A eligibility to include Exchange Act reporting companies. This would provide already public companies with a lower-cost means of raising additional capital and potentially increase awareness and interest in Reg A offerings by market participants.</strong></li>\n<li><strong>Encourage state securities regulators to promptly update their regulations to exempt secondary trading of Tier 2 securities or, alternatively, have the SEC use its authority to preempt state registration requirements.</strong></li>\n<li><strong>Increase Tier II limit to $75 million.</strong></li>\n</ul>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-203\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2017/10/Map-3-873x1024.png\" alt=\"\" width=\"966\" height=\"1133\" /></figure>\n</div>\n<p><!-- /wp:image --></p>\n<p><!-- wp:heading {\"level\":3,\"align\":\"center\"} --></p>\n<p>&nbsp;</p>\n<p><!-- /wp:paragraph --></p>\n<p><!-- wp:tadv/classic-paragraph /--></p>[/et_pb_text][et_pb_text _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"52px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_color=\"#890f01\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" custom_padding=\"||0px|||\" hover_enabled=\"0\" sticky_enabled=\"0\" min_height_last_edited=\"on|desktop\" height_last_edited=\"on|desktop\"]<h3><span class=\"tadv-color\"><strong>Is your company a good fit for Reg A+?</strong></span></h3>[/et_pb_text][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"4.6.5\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" animation_style=\"zoom\" hover_enabled=\"0\" button_text_size_tablet=\"25px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" locked=\"off\" sticky_enabled=\"0\"][/et_pb_button][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/do-it.gif\" align=\"center\" _builder_version=\"4.6.5\" width=\"100%\" max_width=\"100%\" height=\"363px\"][/et_pb_image][et_pb_text _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"52px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_color=\"#890f01\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" custom_padding=\"||0px|||\" hover_enabled=\"0\" sticky_enabled=\"0\" height_last_edited=\"on|desktop\"]<p><!-- wp:paragraph --></p>\n<p><strong>Disclaimer: This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of JOSSEY PLLC. Many factors go into a successful raise including appeal of the product, market for the product, quality of marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee any issuer will have a successful raise.</strong></p>\n[/et_pb_text][et_pb_text _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"52px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_color=\"#890f01\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" custom_padding=\"||0px|||\" hover_enabled=\"0\" min_height_last_edited=\"on|desktop\" sticky_enabled=\"0\"][/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_sidebar orientation=\"right\" disabled_on=\"on|on|off\" _builder_version=\"4.6.4\" header_font=\"Black Ops One|700||||on|||\" header_text_color=\"#890f01\" header_font_size=\"22px\" body_font=\"Black Ops One||||||||\"][/et_pb_sidebar][/et_pb_column][/et_pb_row][/et_pb_section]','Reg A+','','publish','closed','closed','','reg-a','','','2020-09-30 15:42:34','2020-09-30 15:42:34','',0,'https://www.thecrowdfundinglawyers.com/?page_id=1203',0,'page','',0),(1289,1,'2019-06-16 04:45:01','2019-06-16 04:45:01','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.4\" _module_preset=\"default\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/crowdfundingoptions.jpg\" custom_padding=\"100px||100px||false|false\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.4\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#ffffff\" header_2_text_color=\"#ffffff\" header_3_text_color=\"#ffffff\" header_text_shadow_style=\"preset1\" header_text_shadow_color=\"rgba(0,0,0,0.9)\" header_2_text_shadow_style=\"preset1\" header_2_text_shadow_color=\"rgba(0,0,0,0.75)\"]<h1>Reg CF</h1>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"3.24.1\"][et_pb_row column_structure=\"2_3,1_3\" _builder_version=\"4.6.4\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" custom_padding=\"||0px|||\"][et_pb_column type=\"2_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.6.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\"]<h1>Reg CF</h1>\n<p><strong>President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 after receiving overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller businesses raise capital through innovative rules and regulatory rollback. Reg CF was finalized in May 2016.  </strong></p>\n<h2><strong><span class=\"tadv-color\">Reg CF Basics</span></strong></h2>\n<ul>\n<li><strong>Any business can raise up to $1.07M over a 12-month period selling shares, warrants, or bonds, and can set a minimum and maximum range</strong></li>\n<li><strong>Businesses sell their financial instruments over a FINRA-approved portal, 37 total portals, the biggest ones are located in California.  </strong></li>\n<li><strong>Investors are subject to limits based on income and net worth, and usually must hold the investment for one year</strong></li>\n<li><strong>Businesses are required to track financial instruments and file a year-end report</strong></li>\n</ul>\n<h2><strong><span class=\"tadv-color\">Reg CF So Far</span></strong></h2>\n<ul>\n<li><strong>Total Commitments: $217,383,649 raised since May 2016</strong></li>\n<li><strong>Total Investors: 234,883</strong></li>\n<li><strong>Total Campaigns: 1,640</strong></li>\n<li><strong>Average Raise: $219,382</strong></li>\n<li><strong>Jobs Supported: 8,690</strong></li>\n</ul>\n<h3><span class=\"tadv-color\"><strong>Reg CF: Three Years of Growth</strong></span></h3>[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Graph-Reg-CF.jpg\" align=\"center\" force_fullwidth=\"on\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h3><span class=\"tadv-color\"><strong>Growth by Geography</strong></span></h3>[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Geographic-Comparison.jpg\" align=\"center\" force_fullwidth=\"on\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text admin_label=\"Text\" _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h3><span class=\"tadv-color\"><strong>Growth by Industry</strong></span></h3>[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Industries.jpg\" align=\"center\" force_fullwidth=\"on\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text admin_label=\"Text\" _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h3><span class=\"tadv-color\"><strong>Successful Raise Realities</strong></span></h3>\n<ul>\n<li><strong>Five major portals located almost exclusively in California </strong></li>\n<li><strong>Portal investors lists gives them all the power</strong></li>\n<li><strong>Look for criteria to determine probability of a successful raise.</strong></li>\n<li><strong>Revenue, Day 1 money, team, “cool” factor</strong></li>\n<li><strong>Lead investors ($50k), ambassadors, market traction, press generated</strong><strong></strong></li>\n</ul>\n<h3><span class=\"tadv-color\"><strong>Future Reg CF Fixes</strong></span></h3>\n<ul>\n<li><strong>Allow single-purpose crowdfunding vehicles advised by a registered investment adviser, which may mitigate issuers’ concerns about having an unwieldy number of shareholders and tripping SEC registration thresholds. H.R. 6380, Crowdfunding Amendments Act, JOBS Act 3.0</strong></li>\n<li><strong>Waive investment limits for accredited investors as defined by Regulation D.</strong></li>\n<li><strong>Increase the limit on how much can be raised over a 12-month period from $1 million to $5 million.</strong></li>\n<li><strong>Increase individual investor limits for nonaccredited investors of the greater rather than lesser of the annual income and net worth percentages</strong></li>\n<li><strong>Conditional exemption from Section 12(g) be modified by raising the maximum revenue requirement from $25 million to $100 million.</strong></li>\n</ul>[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Crowdfunding-Comparisons.jpg\" align=\"center\" force_fullwidth=\"on\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\" locked=\"off\"]<h3><span class=\"tadv-color\"><strong>Is your company a good fit for Reg CF?</strong></span></h3>[/et_pb_text][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"3.24.1\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" animation_style=\"zoom\" button_text_size_tablet=\"25px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" locked=\"off\"][/et_pb_button][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/do-it.gif\" align=\"center\" _builder_version=\"3.24.1\" width=\"100%\" max_width=\"100%\" height=\"363px\" locked=\"off\"][/et_pb_image][et_pb_text admin_label=\"Text\" _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\" locked=\"off\"]<p><!-- /wp:image --></p>\n<p><!-- wp:paragraph --></p>\n<p><strong>Disclaimer: This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of JOSSEY PLLC. Many factors go into a successful raise including appeal of the product, market for the product, quality of marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee any issuer will have a successful raise.</strong></p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_sidebar orientation=\"right\" disabled_on=\"on|on|off\" _builder_version=\"4.6.4\" header_font=\"Black Ops One|700||||on|||\" header_text_color=\"#890f01\" header_font_size=\"22px\" body_font=\"Black Ops One|||||on|||\"][/et_pb_sidebar][/et_pb_column][/et_pb_row][/et_pb_section]','Reg CF','','publish','closed','closed','','reg-cf','','','2020-09-28 14:32:24','2020-09-28 14:32:24','',0,'https://www.thecrowdfundinglawyers.com/?page_id=1289',0,'page','',0),(1300,1,'2019-06-16 05:02:20','2019-06-16 05:02:20','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.4\" _module_preset=\"default\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/crowdfundingoptions.jpg\" custom_padding=\"100px||100px||false|false\" hover_enabled=\"0\" title_text=\"crowdfundingoptions\" sticky_enabled=\"0\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.4\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#ffffff\" header_2_text_color=\"#ffffff\" header_3_text_color=\"#ffffff\" header_text_shadow_style=\"preset1\" header_text_shadow_color=\"rgba(0,0,0,0.9)\" header_2_text_shadow_style=\"preset1\" header_2_text_shadow_color=\"rgba(0,0,0,0.75)\"]<h1>Reg D</h1>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"3.24.1\"][et_pb_row column_structure=\"2_3,1_3\" _builder_version=\"3.25\"][et_pb_column type=\"2_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.6.4\" text_font=\"||||||||\" header_font=\"|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\"]<h1><strong><span class=\"tadv-color\">Reg D 506(c)</span></strong></h1>\n<p><strong><span class=\"tadv-color\">President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 after receiving overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller businesses raise capital through innovative rules and regulatory rollback. The SEC began implementing the law in 2013 with Reg D 506(c).  </span></strong></p>\n<h2><strong><span class=\"tadv-color\">Reg D 506(c) </span></strong><span class=\"tadv-color\"><strong>B</strong></span><span class=\"tadv-color\"><strong>asics</strong></span></h2>\n<ul>\n<li><strong>Amended Reg D 506 into ‘b’ and ‘c.’ Allows general solicitation for Reg D offerings for accredited investors only</strong></li>\n<li><strong>Financial instruments are “restricted,” investors must generally hold them for one year</strong></li>\n<li><strong>Issuer must take “reasonable steps” to verify investor status as accredited</strong></li>\n<li><strong>Exempts from broker-dealer registration websites displaying Reg D offerings if profits derive from co-investment with accredited investors</strong></li>\n<li><strong>Notice filing with SEC and states, offers take form of private-placement memorandums</strong></li>\n</ul>\n<h2><strong><span class=\"tadv-color\">Reg D 506(c) So Far</span></strong></h2>\n<p><strong>General solicitation has had a positive yet tiny effect on the private placement market. According to SEC data, for the approximately three-year period through the end of 2016, issuers raised $107.7 billion in debt and equity offerings under Rule 506(c); during the same period Reg D 506(b) issuers raised $2.2 trillion. Thus, Rule 506(c) offerings amount to only 3% of capital raised under Rule 506.</strong></p>\n<p><strong>The availability of online marketplaces has had a positive effect: during the past three years, 16 online marketplaces have raised nearly $1.5 billion in over 6,000 private offerings for accredited investors.</strong></p>\n<p>&nbsp;</p>\n<p>&nbsp;</p>\n<p>&nbsp;</p>\n<p>&nbsp;</p>[/et_pb_text][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" locked=\"off\"]<h3><span class=\"tadv-color\"><strong>Is your company a good fit for Reg D?</strong></span></h3>[/et_pb_text][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"4.6.4\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" animation_style=\"zoom\" button_text_size_tablet=\"25px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" locked=\"off\"][/et_pb_button][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/do-it.gif\" align=\"center\" _builder_version=\"3.24.1\" width=\"100%\" max_width=\"100%\" height=\"363px\" locked=\"off\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_letter_spacing=\"2px\" header_2_font=\"|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" locked=\"off\"]<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"></figure>\n</div>\n<p><strong style=\"font-size: 17px;\">Disclaimer: This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of JOSSEY PLLC. Many factors go into a successful raise including appeal of the product, market for the product, quality of marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee any issuer will have a successful raise.</strong></p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_sidebar orientation=\"right\" disabled_on=\"on|on|off\" _builder_version=\"4.6.4\" header_font=\"Black Ops One|700||||on|||\" header_text_color=\"#890f01\" header_font_size=\"22px\" body_font=\"Black Ops One|||||on|||\" locked=\"off\"][/et_pb_sidebar][/et_pb_column][/et_pb_row][/et_pb_section]','Reg D','','publish','closed','closed','','reg-d','','','2020-09-28 14:23:34','2020-09-28 14:23:34','',0,'https://www.thecrowdfundinglawyers.com/?page_id=1300',0,'page','',0),(1311,1,'2019-06-16 05:26:02','2019-06-16 05:26:02','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.5\" _module_preset=\"default\" background_color=\"#232323\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/biz-startup-crowdfund-firm.jpg\" custom_padding=\"100px||214px||false|false\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.3\" _module_preset=\"default\" text_font=\"||||||||\" header_font=\"Oswald||||||||\" header_text_color=\"#ffffff\" header_font_size=\"42px\" header_2_font=\"Black Ops One|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\"]<h1>Is Equity Crowdfunding Right for your Company?</h1>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"3.24.1\"][et_pb_row column_structure=\"2_3,1_3\" _builder_version=\"4.6.3\"][et_pb_column type=\"2_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"left\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_line_height=\"1.2em\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" hover_enabled=\"0\" header_font_size_tablet=\"\" header_font_size_phone=\"40px\" header_font_size_last_edited=\"on|phone\" sticky_enabled=\"0\"]<h1>Is Equity Crowdfunding Right for Your Company?</h1>\n<p><img class=\"alignright wp-image-5171 \" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/idea-4.gif\" alt=\"\" width=\"180\" height=\"245\" />President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 with overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller companies raise capital through innovative rules and regulatory rollback. The Securities and Exchange Commission (SEC) began implementing the law in 2013, finalizing the last title in 2016. Through equity crowdfunding, companies can sell stock, warrants (promises for future equity), or debt, no matter their size or operating history.</p>\n<h2 style=\"text-align: center;\"><strong>How Equity Crowdfunding helps your company</strong></h2>\n<p><strong>Besides capital to help your business grow, equity crowdfunding provides other unique benefits.</strong></p>\n<ul class=\"block-editor-rich-text__editable editor-rich-text__editable\" role=\"textbox\" contenteditable=\"true\" aria-multiline=\"true\" data-is-placeholder-visible=\"false\" aria-label=\"Write list…\" aria-autocomplete=\"list\">\n<li><strong data-rich-text-format-boundary=\"true\">Broaden your investor base</strong>: Unlike other funding models, equity crowdfunding diversifies your investor base both financially and geographically. Issuers may accept investors worldwide giving your company a potential global footprint. Equity Crowdfunding removes barriers that prevent ordinary people from investing in startups and small companies. No longer is access to the most promising companies limited to “accredited investors” i.e. rich people by the SEC’s arbitrary measures.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Exposure for your business</strong>: Selling securities through FINRA-regulated portals introduces your business to hundreds of thousands of potential investors, media, and other influencers via portal lists. If your campaign gains momentum the portals promote your company multiple times. Moreover, outside marketing has the dual benefit of gaining exposure for your raise and your company simultaneously.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Market Validation</strong>: A successful equity crowdfunding campaign shows the larger investor market and the larger customer base that your business model works. Investors will not support companies with flawed models or poor metrics. It also shows your management knows how to win and multitask. Your company becomes more attractive to larger investors like venture capitalists and investment banks.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Leverage</strong>: The statistics are grim for successful startups that solely use traditional venture capital. According a <a href=\"https://hbr.org/2008/02/the-founders-dilemma\">Harvard study</a>, by year four only 40% of CEOs are still in office and only 25% remain by the time a company goes public. Equity Crowdfunding allows your management team to retain complete control and it allows you to walk away from institutional investors offering unsatisfying terms. Your company can do another crowdfunding round or jump to a higher exemption with larger limits.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Turn your customers into marketers</strong>: Equity Crowdfunding aligns economic incentives in your company’s favor. Your customers or clients become investors; your investors become customers or clients. <em>And they tell their friends and colleagues</em>. Because the more successful your company is the higher their return. The prospect of ROI incentivizes them to promote your company and intensifies brand loyalty.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Incentivize your investors</strong>: Equity crowdfunding allows your company to reward investors with benefits thematic to your business (the Kickstarter model). Depending on the product, this could include the product itself, ‘founder’ status on your website, access to events, or anything else that may induce investment. This also promotes brand loyalty and makes everyone feel like they are ‘part of the team.’</li>\n</ul>\n<h2><strong>So . . . Are you ready to get started?</strong></h2>\n[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Jen-An2.gif\" align=\"center\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"left\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_line_height=\"1.2em\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_font_size_tablet=\"\" header_font_size_phone=\"40px\" header_font_size_last_edited=\"on|phone\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h2><strong>Is your company a good fit for equity crowdfunding?</strong></h2>\n<p><strong><span>Don’t think this is going to be easy. Equity Crowdfunding is a tool it’s not a gift from heaven. You must evaluate whether your company is right for this process. None of the following factors alone guarantee a successful raise. But they all point toward the best outcome. </span></strong></p>\n<ul role=\"textbox\" aria-multiline=\"true\" class=\"block-editor-rich-text__editable editor-rich-text__editable\" contenteditable=\"true\" data-is-placeholder-visible=\"false\" aria-label=\"Write list…\" aria-autocomplete=\"list\">\n<li><strong data-rich-text-format-boundary=\"true\">Revenue</strong>: Having revenue proves your idea is working. This gives investors confidence your company is sprinting toward profitability, growth, market share, and ROI.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Day One Money</strong>: When your raise goes live you must signal investors that your company is a good bet. Bringing your own ‘crowd’ to the raise early shows you have a network of “ambassadors” dedicated to your success. Investors want to feel they are part of winning team. Day One Money gives investors confidence they are right to believe in your company. <em>Note, SEC solicitation rules apply.</em></li>\n<li><strong>Strong Team</strong><span>: Investors measure the experience and energy of management. Their LinkedIn profiles will likely be available on your investment page for them to view. Past success as an entrepreneur or expertise in your industry is an advantage. </span></li>\n<li><strong data-rich-text-format-boundary=\"true\">Technology/Patents</strong>: If your company features technology that is not replicable or easily replicable that is a plus.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Consumer facing product</strong>. ‘B to C’ businesses work best because they can attract the widest possible crowd. But don’t worry ‘B to B’ works too, you just may have to put more effort into telling your story. But many ‘B to B’ companies have had successful raises.</li>\n</ul>[/et_pb_text][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Industries.jpg\" align=\"center\" force_fullwidth=\"on\" _builder_version=\"3.24.1\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"left\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_line_height=\"1.2em\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_font_size_tablet=\"\" header_font_size_phone=\"40px\" header_font_size_last_edited=\"on|phone\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<ul role=\"textbox\" aria-multiline=\"true\" class=\"block-editor-rich-text__editable editor-rich-text__editable\" contenteditable=\"true\" data-is-placeholder-visible=\"false\" aria-label=\"Write list…\" aria-autocomplete=\"list\">\n<li><strong data-rich-text-format-boundary=\"true\">Social Value</strong>: Some investors like ‘feel good’ companies. If your company can point to a social purpose like eco-friendly, healthy living, or empowering underrepresented entrepreneurs, this can be an advantage.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Earned Media</strong>: You can feature any earned media you’ve garnered on your investment page. The more well-known the media brand the better. This shows you have started to break out from the pack and get noticed in your industry.</li>\n<li><strong data-rich-text-format-boundary=\"true\">Legal Representation</strong>: Equity Crowdfunding involves securities regulated by the SEC and portals regulated by FINRA. The rules are complex and hundreds of pages. There are unique requirements at every stage of the process from what you can say before and during the raise to what forms you must file and when you must update. The portals will help with phone calls and templates, but they are responsible to themselves not your company. An attorney can guide you through the process answer all your questions and, most important, advocate your interests throughout the process.</li>\n</ul>\n<h2 class=\"has-medium-font-size\"><span><strong><span class=\"tadv-color\">So are YOU ready </span></strong><strong><span class=\"tadv-color\">to</span></strong><strong><span class=\"tadv-color\"> raise the capital your company needs to reach its highest potential?</span></strong></span></h2>[/et_pb_text][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"4.6.3\" custom_button=\"on\" button_text_size=\"33px\" button_text_color=\"#ffffff\" button_bg_color=\"#000000\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_color=\"#ffffff\" button_border_radius=\"26px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" animation_style=\"zoom\" button_text_size_tablet=\"25px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\" button_text_shadow_style=\"preset1\" button_text_shadow_horizontal_length=\"-0.51em\" button_text_shadow_vertical_length=\"0.03em\" locked=\"off\"][/et_pb_button][et_pb_image src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/do-it.gif\" align=\"center\" _builder_version=\"3.24.1\" width=\"100%\" max_width=\"100%\" height=\"363px\" locked=\"off\"][/et_pb_image][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"left\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_line_height=\"1.2em\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" header_font_size_tablet=\"\" header_font_size_phone=\"40px\" header_font_size_last_edited=\"on|phone\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h2 style=\"text-align: left;\">Further Reading:</h2>[/et_pb_text][et_pb_text admin_label=\"Text\" _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald|700||||on|||\" header_text_align=\"left\" header_text_color=\"#890f01\" header_font_size=\"70px\" header_line_height=\"1.2em\" header_2_font=\"Oswald|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" header_3_font=\"Oswald|700||||on|||\" header_3_text_align=\"center\" header_3_text_color=\"#890f01\" link_option_url=\"https://www.thecrowdfundinglawyers.com/four-keys-to-a-successful-equity-crowdfunding-raise-reg-cf/\" link_option_url_new_window=\"on\" header_font_size_tablet=\"\" header_font_size_phone=\"40px\" header_font_size_last_edited=\"on|phone\" header_text_shadow_style=\"preset4\" header_text_shadow_vertical_length=\"0.05em\" header_text_shadow_color=\"#000000\"]<h2 style=\"text-align: left;\">Four Keys to a Successful Equity Crowdfunding Raise</h2>[/et_pb_text][et_pb_text _builder_version=\"3.27.4\" text_font=\"||||||||\" header_font=\"Oswald||||||||\" header_font_size=\"19px\" header_2_font=\"Black Ops One|700||||on|||\" header_2_text_align=\"center\" header_2_text_color=\"#890f01\" header_2_font_size=\"39px\" locked=\"off\"]<p><strong style=\"font-size: 17px;\">Disclaimer: This document is for informational purposes only. It does not represent a contract, offer, or any legal obligation on the part of JOSSEY PLLC. Many factors go into a successful raise including appeal of the product, market for the product, quality of marketing, operating history of the company, experience of management, and ability to self-generate crowd investors. Legal and regulatory compliance is only one part. Investing in small companies and startups carries lots of risk, there is no guarantee any issuer will have a successful raise.</strong></p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_sidebar orientation=\"right\" disabled_on=\"on|on|off\" _builder_version=\"4.6.3\" header_font=\"Black Ops One|700||||on|||\" header_text_color=\"#890f01\" header_font_size=\"22px\" body_font=\"Black Ops One|||||on|||\" locked=\"off\"][/et_pb_sidebar][/et_pb_column][/et_pb_row][/et_pb_section]','Is Equity Crowdfunding Right for your Company?','','publish','closed','closed','','is-equity-crowdfunding-right-for-your-company','','','2020-09-30 17:58:42','2020-09-30 17:58:42','',0,'https://www.thecrowdfundinglawyers.com/?page_id=1311',0,'page','',0),(1325,1,'2019-06-16 17:04:43','2019-06-16 17:04:43','[et_pb_section fb_built=\"1\" _builder_version=\"4.6.4\" _module_preset=\"default\" background_image=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/biz-startup-crowdfund-firm2.jpg\" custom_padding=\"100px||100px||false|false\"][et_pb_row _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.1\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.5\" _module_preset=\"default\" text_text_color=\"#ffffff\" header_text_color=\"#ffffff\" header_2_text_color=\"#ffffff\" header_3_text_color=\"#ffffff\" header_font_size_tablet=\"0.9em\" header_font_size_phone=\"0.8em\" header_font_size_last_edited=\"on|tablet\" background_last_edited=\"on|desktop\" header_text_shadow_style=\"preset1\" header_text_shadow_color=\"rgba(0,0,0,0.9)\" header_2_text_shadow_style=\"preset1\" header_2_text_shadow_color=\"rgba(0,0,0,0.75)\"]<h1>Equity Crowdfunding</h1>\n<h2>Jossey PLLC</h2>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" _builder_version=\"4.6.5\" background_enable_image=\"off\" parallax=\"on\" height_tablet=\"\" height_phone=\"\" height_last_edited=\"on|phone\" background_last_edited=\"on|phone\" use_background_color_gradient_phone=\"off\" background_color_gradient_start_phone=\"#007e8c\" background_color_gradient_end_phone=\"#005491\" background_enable_image_tablet=\"off\" background_enable_image_phone=\"off\" parallax_tablet=\"off\" parallax_phone=\"off\"][et_pb_row custom_padding_last_edited=\"on|tablet\" _builder_version=\"4.6.5\" background_enable_color=\"off\" width_tablet=\"\" width_phone=\"95%\" width_last_edited=\"on|phone\" height_tablet=\"\" height_phone=\"\" height_last_edited=\"on|phone\" custom_margin_tablet=\"\" custom_margin_phone=\"\" custom_margin_last_edited=\"on|desktop\" custom_padding_tablet=\"|20px||20px|false|true\" custom_padding_phone=\"|20px||20px|false|false\" background_last_edited=\"on|phone\" background_enable_color_phone=\"off\" use_background_color_gradient_tablet=\"off\" use_background_color_gradient_phone=\"off\" background_color_gradient_end_tablet=\"#005491\" background_color_gradient_end_phone=\"#005491\"][et_pb_column type=\"4_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.6.5\" text_font=\"||||||||\" header_font=\"Black Ops One|700||||on|||\" header_text_align=\"center\" header_text_color=\"#890f01\" header_font_size=\"67px\" header_letter_spacing=\"4px\" header_line_height=\"1.6em\" header_3_font=\"||||||||\" header_4_font=\"Black Ops One|700||||on|||\" header_4_text_color=\"#890f01\" header_4_font_size=\"34px\" header_4_letter_spacing=\"1px\" header_6_font=\"Black Ops One||||||||\" header_6_text_align=\"center\" header_6_text_color=\"#ffffff\" custom_padding=\"||||false|false\" text_font_tablet=\"\" text_font_phone=\"\" text_font_last_edited=\"on|phone\" header_font_size_tablet=\"52px\" header_font_size_phone=\"12px\" header_font_size_last_edited=\"on|tablet\" header_text_shadow_style=\"preset4\" header_text_shadow_horizontal_length=\"0.05em\" header_text_shadow_vertical_length=\"0.02em\" header_text_shadow_blur_strength=\"0.05em\" header_text_shadow_color=\"#ffffff\" header_4_text_shadow_style=\"preset5\" header_4_text_shadow_color=\"#000000\"]<h2><strong>JOSSEY PLLC</strong></h2>\n<p><img class=\"alignright wp-image-5172 size-full\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2020/09/package-4.gif\" alt=\"\" width=\"550\" height=\"400\" />Equity Crowdfunding enables companies to sell securities, online. The Securities and Exchange Commission regulates all securities raised this way. This is not Kickstarter or Indiegogo. This is next-level professionalized crowdfunding for companies ready to break away from the pack.</p>\n<h3>Cost:</h3>\n<p>Packages start at $4k (discount available).</p>\n<h3>Each package includes:</h3>\n<p><strong>Pre Raise:</strong></p>\n<ul>\n<li>Personal Introduction to portal intermediaries or Broker Dealers to get a decision on your company fast-tracked</li>\n<li>All corporate governance creation, preparation, and/or modification as needed</li>\n<li>Guidance on various types of securities and which may be the best for your company</li>\n<li>Preparation of all legal documents filed with the SEC</li>\n</ul>\n<p><strong>During Raise:</strong></p>\n<ul>\n<li>Ongoing advice once raise is live on marketing, solicitation, regulatory, and corporate compliance</li>\n</ul>\n<p><strong>Post Raise:</strong></p>\n<ul>\n<li>General Counsel Package available. Includes general business law advice on contracts, negotiation with vendors, employment law etc. Also includes any ongoing compliance with the SEC or state authorities.</li>\n</ul>[/et_pb_text][et_pb_divider _builder_version=\"4.6.3\" _module_preset=\"default\"][/et_pb_divider][/et_pb_column][/et_pb_row][et_pb_row column_structure=\"1_3,1_3,1_3\" make_equal=\"on\" _builder_version=\"4.6.5\" _module_preset=\"default\" background_last_edited=\"on|desktop\"][et_pb_column type=\"1_3\" _builder_version=\"4.6.3\" _module_preset=\"default\" background_color=\"#003563\" box_shadow_style=\"preset2\"][et_pb_cta title=\"Reg A+\" button_url=\"https://www.thecrowdfundinglawyers.com/reg-a/\" button_text=\"Learn About Reg A+\" _builder_version=\"4.6.3\" _module_preset=\"default\" header_text_align=\"center\" header_text_color=\"#f0b800\" header_font_size=\"42px\" background_color=\"#003563\" button_alignment=\"center\" text_orientation=\"left\"]<p style=\"text-align: center;\">Raise up to $50M</p>\n<p style=\"text-align: center;\"><strong>\"Mini IPO\" </strong></p>\n<ul>\n<li>For establhised private companies with proven revenue stream and possible designs on an IPO</li>\n<li>Companies can \"test the waters\" to guage interest in the raise before committing.</li>\n<li>Securities can be \'unrestricted\' - freely tradable upon SEC qualifacation. (Particulary valuable for Potential token sales}</li>\n<li>Available to unaccredited and accredited investors.</li>\n</ul>\n<ul></ul>\n<p>&nbsp;</p>[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"4.6.3\" _module_preset=\"default\" background_color=\"#003563\" box_shadow_style=\"preset2\"][et_pb_cta title=\"Reg CF\" button_url=\"https://www.thecrowdfundinglawyers.com/reg-cf/\" button_text=\"Learn About Reg CF\" _builder_version=\"4.6.3\" _module_preset=\"default\" header_text_align=\"center\" header_text_color=\"#f0b800\" header_font_size=\"42px\" background_color=\"#003563\" button_alignment=\"center\" text_orientation=\"left\"]<p style=\"text-align: center;\">Raise up to $1.07M</p>\n<ul>\n<li>For smaller companies and startups looking to gain exposure for their product/service and validate their market.</li>\n<li>Availalable to unacredited and accreedited investors investors throughout the US and the world</li>\n<li>Securities sold through portal intermediaries, most located in California.</li>\n<li>Potential exposure to hundreds of thousads of investors, media, and other influencers.</li>\n</ul>\n<ul></ul>\n<p>&nbsp;</p>[/et_pb_cta][/et_pb_column][et_pb_column type=\"1_3\" _builder_version=\"4.6.3\" _module_preset=\"default\" background_color=\"#003563\" box_shadow_style=\"preset2\"][et_pb_cta title=\"Reg D\" button_url=\"https://www.thecrowdfundinglawyers.com/reg-d/\" button_text=\"Learn About Reg D\" _builder_version=\"4.6.3\" _module_preset=\"default\" header_text_align=\"center\" header_text_color=\"#f0b800\" header_font_size=\"42px\" background_color=\"#003563\" button_alignment=\"center\" text_orientation=\"left\"]<p>Raise Unlimited Amount From Accredited Investors Only</p>\n<ul>\n<li>For Established Companies or Serial Entrepenuers with connections to high net worth indiiduals, venture capitilasts or invesituional investors</li>\n<li>Can solicti offering through online marketplaces or portal intermediaries</li>\n<li>Must verify accredited investor status</li>\n<li>Private Placement Memorandum</li>\n</ul>\n<p>&nbsp;</p>\n<ul></ul>\n<ul></ul>\n<p>&nbsp;</p>[/et_pb_cta][/et_pb_column][/et_pb_row][et_pb_row column_structure=\"1_2,1_2\" use_custom_gutter=\"on\" gutter_width=\"1\" _builder_version=\"4.6.3\" width=\"87.8%\" custom_margin=\"12px||\" custom_padding=\"|||0px\" locked=\"off\"][et_pb_column type=\"1_2\" _builder_version=\"4.6.3\" custom_padding=\"||||false|false\" custom_padding__hover=\"|||\"][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\" button_text=\"Is Equity Crowdfunding Right For Your Company?\" button_alignment=\"center\" admin_label=\"Button\" _builder_version=\"4.6.3\" custom_button=\"on\" button_text_color=\"#ffffff\" button_bg_color=\"#0c71c3\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_width=\"2px\" button_border_color=\"#ffffff\" button_border_radius=\"11px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" background_layout=\"dark\" custom_padding=\"20px||20px||false|false\" animation_style=\"flip\" animation_intensity_flip=\"75%\" button_text_size_tablet=\"24px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\"][/et_pb_button][/et_pb_column][et_pb_column type=\"1_2\" _builder_version=\"4.6.3\" custom_padding=\"||||false|false\" custom_padding__hover=\"|||\"][et_pb_button button_url=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\" button_text=\"Let\'s Talk! Schedule a Call or Video Conference\" button_alignment=\"center\" _builder_version=\"4.6.3\" custom_button=\"on\" button_text_color=\"#ffffff\" button_bg_color=\"#0c71c3\" button_bg_color_gradient_start=\"#000000\" button_bg_color_gradient_direction=\"296deg\" button_bg_color_gradient_start_position=\"35%\" button_bg_color_gradient_end_position=\"69%\" button_border_width=\"2px\" button_border_color=\"#ffffff\" button_border_radius=\"11px\" button_letter_spacing=\"1px\" button_font=\"Oswald|700||||on|||\" button_icon=\"%%24%%\" background_layout=\"dark\" custom_padding=\"20px||20px||false|false\" animation_style=\"flip\" animation_intensity_flip=\"75%\" button_text_size_tablet=\"24px\" button_text_size_phone=\"23px\" button_text_size_last_edited=\"on|tablet\"][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" disabled_on=\"off|off|off\" _builder_version=\"4.6.5\" background_color=\"#003563\" width=\"100%\" global_module=\"5041\" saved_tabs=\"all\"][et_pb_row column_structure=\"1_4,1_4,1_4,1_4\" use_custom_gutter=\"on\" make_equal=\"on\" disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width=\"100%\" max_width=\"98%\" custom_margin=\"|||\" custom_padding=\"|41px||\"][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|phone\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" module_alignment=\"left\" min_height_tablet=\"\" min_height_phone=\"\" min_height_last_edited=\"on|phone\" custom_margin_tablet=\"\" custom_margin_phone=\"\" custom_margin_last_edited=\"on|desktop\" custom_padding_tablet=\"\" custom_padding_phone=\"\" custom_padding_last_edited=\"on|desktop\" module_alignment_tablet=\"center\" module_alignment_phone=\"center\" module_alignment_last_edited=\"on|desktop\"]<p>[custom-twitter-feeds]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds hashtag=\"#crowdfunding\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds hashtag=\"#crypto\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"4.6.3\" background_enable_color=\"off\" custom_padding=\"40px|20px|40px|20px|false|false\" border_color_all=\"rgba(255,255,255,0.5)\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"4.6.5\" width_tablet=\"\" width_phone=\"\" width_last_edited=\"on|desktop\" max_width_tablet=\"\" max_width_phone=\"\" max_width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds screenname=\"SEC_News\"]</p>[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row disabled_on=\"off|off|on\" _builder_version=\"4.6.5\" _module_preset=\"default\"][et_pb_column type=\"4_4\" _builder_version=\"4.6.5\" _module_preset=\"default\"][et_pb_text _builder_version=\"4.6.5\" _module_preset=\"default\" text_orientation=\"center\"]<p>[custom-twitter-feeds]</p>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]','CFL Landing','','publish','closed','closed','','cfl-landing','','','2021-01-26 00:33:28','2021-01-26 00:33:28','',0,'https://www.thecrowdfundinglawyers.com/?page_id=1325',0,'page','',0),(1504,1,'2019-06-19 14:45:01','2019-06-19 14:45:01','','Firm Logo_01','','inherit','open','closed','','firm-logo_01','','','2019-06-19 14:45:01','2019-06-19 14:45:01','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Firm-Logo_01.png',0,'attachment','image/png',0),(1542,1,'2019-06-27 18:34:50','2019-06-27 18:34:50','<!-- wp:paragraph -->\n<p>Are you down with a few Californians setting the bounds of\nacceptable speech for a third of the world? Do you shrug when online platforms\nmonitor and monetize your every public thought in return for their “free”\nservice? </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If so bust out your digital wallet because Mark Zuckerberg has a crypto deal for you! </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Mark Zuckerberg Crypto\'s Nightmare on Blockchain Street</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:image {\"id\":1560,\"align\":\"left\",\"width\":295,\"height\":380} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Mark-Zuckerberg-2.jpg\" alt=\"\" class=\"wp-image-1560\" width=\"295\" height=\"380\"/><figcaption><strong>Kindly turn over your data, fellow human</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The Facebook founder, partnering&nbsp; with select venture capitalists, global\nfinancial corporations, and others have created <a href=\"https://libra.org/en-US/\">Libra</a>, a crypto “stable coin.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And there is good news! International money transfers will be free through a digital wallet linked to your Facebook account. You’ll get discounts on services like Uber, Lyft, and other merchants that accept the crypto-coin. It’s designed to be easy and carefree, like sending a <a href=\"https://www.crowdfundinsider.com/2019/06/148516-facebook-launches-stablecoin-libra-and-accompanying-wallet-calibra-is-this-good-for-crypto/\">photo</a>! </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But is it worth it? The bad news is a global consortium of industry giants will monitor your every move. Your financial life will be analyzed and assessed continuously, likely in a cloud-based, AI-enabled mechanism you will never see or have access to. Just listen carefully and you can hear the buzz words. They will use your crypto profile to “improve” your financial “experiences” and provide you “relevant” information “tailored” to your specific needs. This consortium is built to sell you things at exactly the price you can afford (or perhaps a little over). </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And one day you’ll pay your taxes through your Facebook crypto, because, of course, they’ll know exactly how much you owe. Just remember you opted in through a word wall designed to go unread. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>A Global Corporate Consortium will use crypto to regulate your finances and your speech</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Of course once you’re strapped in, you’ll want avoid liking that distasteful Facebook post or retweeting that meme that mocked a politician or offended an activist. You wouldn’t want anyone to feel “unsafe” would you? Also, don’t pay for membership in that organization that supports “hate,” with your corporate crypto. And don’t buy that subversive T-shirt that microagresses a fellow human either. Risk it and you may end up with a message like <a href=\"https://twitter.com/Bitcoin/status/1142331498349002752\">this</a>:&nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:core-embed/twitter {\"url\":\"https://twitter.com/Bitcoin/status/1142331498349002752\",\"type\":\"rich\",\"providerNameSlug\":\"twitter\",\"align\":\"center\",\"className\":\"\"} -->\n<figure class=\"wp-block-embed-twitter aligncenter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\nhttps://twitter.com/Bitcoin/status/1142331498349002752\n</div></figure>\n<!-- /wp:core-embed/twitter -->\n\n<!-- wp:paragraph {\"align\":\"left\"} -->\n<p style=\"text-align:left\">If this inconveniences you, don’t complain. Facebook and\nit’s 28 partners are private companies after all, and you signed up. If this\nsounds dystopian, it’s <a href=\"https://www.pastemagazine.com/articles/2016/09/censorship-is-killing-the-spirit-of-social-media.html\">already</a>\n<a href=\"https://www.nationalreview.com/2019/03/the-social-media-censorship-dumpster-fire/\">happening</a>.\nWhy not relinquish your financial transactions too? </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Oddly, Libra’s debut PR blitz didn’t mention any of this. Of course, what matters now is adoption. Thus, the corporate crypto is supposedly <a href=\"https://libra.org/en-US/\">missioned</a> with providing low-cost banking to the 1.7 billion poorest among us and reduced fees for the rest. Sounds good, right? Only we’re supposed to rely on the trustworthiness of Zuckerberg and the partner corporations that ponied up at least $10 million to participate and who will receive a windfall if the coin takes off.&nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Libra is designed to control first-world finance not third-world transactions </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph {\"align\":\"left\"} -->\n<p style=\"text-align:left\">But Libra’s altruistic claims fall apart fast. As Daniel\nEvans writing in CoinDesk <a href=\"https://www.coindesk.com/examining-facebooks-claim-its-crypto-is-for-the-unbanked\">explained</a>,\nover half those 1.7 billion are from seven countries, Bangladesh, China, India,\nIndonesia, Mexico, Nigeria, and Pakistan. All have legal barriers to Facebook\nand cryptocurrency that make adoption unlikely. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Libra’s goal is the entrenchment of some very rich, powerful\ninstitutions that have much to lose in a decentralized world. Empowering the\nindividual keeps control at the bottom of the “stack” instead of it rising to a\ncorporate oligarchy who mass collect and silo your data making it difficult\ngovern your own identity and hard to leave. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Blockchain’s promise is a world where each individual\nregulates and profits from the information they choose to share and receive. A\ntokenized world would enable each person to buy, sell, or publicize what they\nwant with whomever they want upon prearranged terms without massive middlemen\nacting as data chokepoints. This paradigm shift directly threatens Facebook,\ncredit card companies, and venture capitalists who made boatloads off the\ninternet’s past iterations. Libra is designed to kill blockchain’s future and\nretrench oligarchic power for decades to come; the <a href=\"https://libra.org/en-US/\">sappy videos</a> are for media consumption. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Those who want to control our lives won’t go quietly. They will offer convenience, discounts, and “community.” And all they ask for in return, is to collect every data point that makes up our identity, so to keep profiting off us and keep us in line.  If that doesn’t sound like a bargain. If autonomy, dignity, and control of your personal information is important to you, tell Libra to get zucked.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com </a></p>\n<!-- /wp:paragraph -->','Mark Zuckerberg\'s crypto scheme is banking we\'re all stupid','','publish','open','open','','mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right','','','2019-07-24 16:13:39','2019-07-24 16:13:39','',0,'https://www.thecrowdfundinglawyers.com/?p=1542',0,'post','',0),(1560,1,'2019-06-27 18:38:29','2019-06-27 18:38:29','','Mark Zuckerberg','','inherit','open','closed','','mark-zuckerberg-2','','','2019-07-15 20:20:55','2019-07-15 20:20:55','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Mark-Zuckerberg-2.jpg',0,'attachment','image/jpeg',0),(1573,1,'2019-06-29 14:06:10','2019-06-29 14:06:10','<p>SEC staff recently reported on <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF’</a>s progress at the three-year mark. The <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/06/SEC-regulation-crowdfunding-2019_0.pdf\">document</a> reveals interesting, though somewhat dated information on <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>. And it explores reforms issuers, portals, and industry professionals say must occur to make Reg CF explode. Companies need solutions to millstones the SEC acknowledges exist. The SEC has previously <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">recognized</a> these issues, but progress comes slow. Until it or Congress demands more, Reg CF will underperform. And blame must lie with those who can help most.</p>\r\n<p>The report aimed to study <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>’s “impact . . . on capital formation and investor protection.” Although one may find more current information from sources like <a href=\"http://crowdfundcapitaladvisors.com/\">Crowdfund Capital Advisors</a> and some portals.</p>\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Reg CF continues to gain traction</strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The report states, “The market exhibited growth over time: 292 offerings initiated during the first year, 557 during the second year, and approximately 502 during the first part of the third year (from May 16, 2018 through December 31, 2018) since the rules went into effect.” This growth doesn’t approach the established private exemptions but shows that <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF </a>awareness is growing.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The numbers accord with other data sources regarding<a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\"> Reg CF</a>’s performance over time:</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:quote -->\r\n<blockquote class=\"wp-block-quote\">\r\n<p>Of the offerings that were reported completed, the average offering sought a target amount of approximately $52,428 and a maximum amount of approximately $577,385 and raised approximately $208,300 per offering and approximately $107.9 million in the aggregate, which does not include investor commitments in ongoing offerings. The median amount reported raised was approximately $107,367. We estimate that 29 offerings reported raising at least $1.07 million from May 16, 2016 through December 31, 2018.</p>\r\n</blockquote>\r\n<!-- /wp:quote -->\r\n<!-- wp:paragraph -->\r\n<p>Thus, most issuers raising somewhere between $100-$200k with a few maxing out at just over a million.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:image {\"id\":1581,\"align\":\"center\",\"width\":705,\"height\":805} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-1581\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Table.png\" alt=\"\" width=\"705\" height=\"805\" />\r\n<figcaption><strong>Source: Securities and Exchange Commission</strong></figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<!-- wp:paragraph -->\r\n<p>But these numbers show only part of the story. For example, it does not say how much “crowd” each issuer brought to the raise. And it fails to contrast that number with how many investors came through the portal list or marketing. See <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">here</a>, for a better breakdown of the components of a successful raise.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Reg CF\'s concentrated geography and upfront costs are hurting adoption </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>The report provides other interesting information. For instance, most issuers offer either equity or warrants for future equity. Unfortunately, most issuers are concentrated in places adapted to decentralized fundraising like California, Texas, and New York. They spend varying amounts to get their raise started on disclosures, marketing, legal, accounting, video and copy.  </p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Commission staff emphasizes they cannot draw clear inferences because of limits in the data. First the timeline is short. But also, they rely mostly on backward looking surveys which can cloud the picture. Still, these graphs can guide companies considering equity crowdfunding.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:image {\"id\":1578,\"align\":\"center\",\"width\":669,\"height\":360} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-1578\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Equity.jpg\" alt=\"\" width=\"669\" height=\"360\" />\r\n<figcaption><strong>Source: Securities and Exchange Commission </strong></figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<!-- wp:image {\"id\":1577,\"align\":\"center\",\"width\":773,\"height\":362} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-1577\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Geography.jpg\" alt=\"\" width=\"773\" height=\"362\" />\r\n<figcaption><strong>Reg CF Geographic Disbursement, Source: Securities and Exchange Commission </strong></figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<!-- wp:image {\"id\":1579,\"align\":\"center\",\"width\":758,\"height\":403} -->\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter is-resized\"><img class=\"wp-image-1579\" src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Costs.jpg\" alt=\"\" width=\"758\" height=\"403\" />\r\n<figcaption><strong>Source: Securities and Exchange Commission </strong></figcaption>\r\n</figure>\r\n</div>\r\n<!-- /wp:image -->\r\n<h3 style=\"text-align: center;\"><strong>Reg CF Shortcomings are well known</strong></h3>\r\n<!-- wp:paragraph -->\r\n<p>To its credit the SEC reviews the many (many) criticisms of<a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\"> Reg CF</a>’s regulatory scheme. Undoubtedly, the Commission displayed <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">hostility</a> toward <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> from the start. It overemphasized investor protection at the expense of simplicity and clear rules. From the report:</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:quote {\"className\":\"is-style-default\"} -->\r\n<blockquote class=\"wp-block-quote is-style-default\">\r\n<p> Some studies and market participants have expressed concern about the cost and complexity of relying on Regulation Crowdfunding. Market participants have stated that many issuers face significant challenges due to the time and cost required to comply with the regulations, including complying with U.S. GAAP financial statement requirements, obtaining a review report, and preparing a Form C, and that many new companies are not able to bear those costs given the uncertainty regarding whether they would raise capital successfully.</p>\r\n</blockquote>\r\n<!-- /wp:quote -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Reg CF fixes can happen at the Commission level </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>These complaints predated Reg CF’s actual start and persist today. Neither the Commission nor Congress in the recent JOBS Act 3.0 (stalled in the House since last Congress) has addressed these issues summarized below:</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Raising Limits will help bring in sophisticated investors </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:list -->\r\n<ul>\r\n	<li><strong>Raise the overall limit</strong>. It may seem paradoxical to raise a limit that few issuers reach but it\'s not. A CEO who knows the max won’t fulfill his or her needs will skip the exemption outright despite its <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">acknowledged benefits</a>. Raising the limit to $10 million or more coalesces the interests of smaller and larger investors. It avoids the common scenario where a few big early investors get huge returns at the expense of the rest as with the recent <a href=\"https://markets.businessinsider.com/news/stocks/uber-ipo-why-retail-investors-will-struggle-to-get-shares-early-on-2019-5-1028190722\">Uber IPO</a>. From the report: “Some of the intermediaries that recommended an increased offering limit stated their view that while few offerings reach the current limit, many issuers choose not to rely on the crowdfunding exemption because the limit is too low. According to some of these intermediaries, some issuers choose to raise funds needed in excess of the offering limit through a separate offering, which they consider to be a less optimal experience for investors and a more costly and potentially riskier approach for issuers.”</li>\r\n	<li><strong>Raise the individual limits</strong>. It makes no sense for accredited investors to have a Reg CF limit but not for Reg D. This forces issuers to “stack” and begets better terms for accrediteds. While some limits are probably necessary for unsophisticated investors, the Commission should reevaluate the formulas to consider knowledge rather than solely income or net worth. From the report: “The 2018 Small Business Forum stated that removing the individual accredited investor limits would make crowdfunding offerings more attractive to accredited investors and make it easier for offerings to reach their maximum offering goals.”</li>\r\n</ul>\r\n<!-- /wp:list -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Relaxing onerous requirements will ease regulatory burdens </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:list -->\r\n<ul>\r\n	<li><strong>Relax the accounting requirements</strong>: The graduated accounting scrutiny makes little sense for smaller issuers. Given that many raises won’t top $200k, a full audit or even a CPA report imposes undue burdens, especially under GAAP. Allowing CEOs to sign off on financial records would likely have the same effect from the investor standpoint. From the report: “[T]he 2017 and 2018 Small Business Forums recommended easing the requirements for smaller and debt-only crowdfunding offerings under $250,000, including limiting the ongoing reporting obligations to actual noteholders (not to the general public); and scaling regulation to reduce relatively inelastic accounting, legal and other costs.”</li>\r\n	<li><strong>Relax the solicitation rules</strong>: The publicity rules are anathema to successful crowdfund raises in other formats. The inability to promote a raise beforehand and the marketing rules once live don’t achieve their investor-protection objective because investors invest through portals that make them acknowledge the risks. Thus, the report states: “Most recently, the 2018 Small Business Forum recommended loosening the advertising restrictions to allow issuers to market their projects more effectively, suggesting that the rules are difficult for issuers to understand and “run counter to the intent of the law: to promote the democratization of investing.”</li>\r\n</ul>\r\n<!-- /wp:list -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Including risk reduction will spur investment </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:list -->\r\n<ul>\r\n	<li><strong>Allow Special Purpose Vehicles</strong>: SPVs can align the incentives of many investors, reduce cap table issues, and provide unsophisticated investors guidance and risk reduction. Thus, from the report: “Market participants cited other potential investor protections an SPV structure could provide, such as allowing small investors to invest alongside a sophisticated lead investor who may negotiate better terms, protect against dilution by negotiating during subsequent financings, mentor the company, and represent smaller investors on the board.”</li>\r\n</ul>\r\n<!-- /wp:list -->\r\n<!-- wp:tadv/classic-paragraph -->\r\n<h3 style=\"text-align: center;\"><strong>Reg CF won\'t reach its potential without Commission leadership </strong></h3>\r\n<!-- /wp:tadv/classic-paragraph -->\r\n<!-- wp:paragraph -->\r\n<p>Reg CF is growing despite <a href=\"https://www.thecrowdfundinglawyers.com/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">known flaws</a> in the regulatory scheme. A decentralized and larger investor class has obvious benefits for all. But the SEC imposed many of these burdens in its rule-making process. Thus, it could fix them without further Congressional action. Unfortunately, its <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">track-record</a> with other new investment vehicles like <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">token sales</a> doesn’t bode well. Still if Chairman “<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End</a>” Jay Clayton wishes to spread wealth and investment opportunities beyond the country’s financial centers, fixing <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF </a>would be a fine start.</p>\r\n<!-- /wp:paragraph -->\r\n<!-- wp:paragraph -->\r\n<p><strong>By </strong><a href=\"https://twitter.com/thecrowdfundlaw\"><strong>Jossey PLLC</strong></a><strong> via </strong><a href=\"http://www.thecrowdfundinglawyers.com/\"><strong>www.thecrowdfundinglawyers.com</strong></a></p>\r\n<!-- /wp:paragraph -->','SEC Reg CF Report details data, criticisms','','publish','open','open','','sec-reg-cf-report-details-data-criticisms','','','2020-10-17 18:51:21','2020-10-17 18:51:21','',0,'https://www.thecrowdfundinglawyers.com/?p=1573',0,'post','',0),(1577,1,'2019-06-29 13:35:17','2019-06-29 13:35:17','','Reg CF Geography','','inherit','open','closed','','reg-cf-geography','','','2019-07-15 19:16:06','2019-07-15 19:16:06','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Geography.jpg',0,'attachment','image/jpeg',0),(1578,1,'2019-06-29 13:35:35','2019-06-29 13:35:35','','Reg CF Equity','','inherit','open','closed','','reg-cf-equity','','','2019-07-15 19:15:53','2019-07-15 19:15:53','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Equity.jpg',0,'attachment','image/jpeg',0),(1579,1,'2019-06-29 13:35:52','2019-06-29 13:35:52','','Reg CF Costs','','inherit','open','closed','','reg-cf-costs','','','2019-07-15 19:15:38','2019-07-15 19:15:38','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Costs.jpg',0,'attachment','image/jpeg',0),(1581,1,'2019-06-29 13:41:44','2019-06-29 13:41:44','','Reg CF Table','','inherit','open','closed','','reg-cf-table','','','2019-07-15 19:15:23','2019-07-15 19:15:23','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Reg-CF-Table.png',0,'attachment','image/png',0),(1588,1,'2019-06-30 20:35:32','2019-06-30 20:35:32','','Simpson GIF','','inherit','open','closed','','simpson-gif','','','2020-09-28 18:03:50','2020-09-28 18:03:50','',5440,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Simpson-GIF.gif',0,'attachment','image/gif',0),(1589,1,'2019-07-01 12:41:12','2019-07-01 12:41:12','<!-- wp:paragraph -->\n<p>Earlier this year, the Competitive Enterprise Institute’s (<a href=\"https://cei.org/\">CEI</a>) John Berlau <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/05/John_Berlau_-_Cryptocurrency_and_the_SEC_s_Limitless_Power_Grab-1.pdf\">reproved</a> the Securities and Exchange Commission’s (SEC) crypto stance. The <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/05/John_Berlau_-_Cryptocurrency_and_the_SEC_s_Limitless_Power_Grab-1.pdf\">paper</a> dissects the Commission and Chairman “<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow End Jay</a>” Clayton’s crypto fears. It\'s a good effort but the think tank weakens its case with imprecise language and missing candor. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Crypto has always flummoxed regulators. Most SEC employees are career bureaucrats that business chops like <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC Valerie</a>. This limits the government\'s view of new technology. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The SEC has taken the crypto-regulation lead. But it has do so reluctantly. The Commission\'s reticence forced it to hire a full-time crypto czar, \"<a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">NPC Valerie</a>.” But if the Commission hoped NPC Valerie would streamline and clarify government crypto policy, she hasn\'t.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\">SEC crypto edicts have been a mess</h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<p>Commission <a href=\"https://www.thecrowdfundinglawyers.com/congress-tries-to-bring-clarity-to-crypto-markets/\">fears</a> of messing up have created uncertainty, booming legal bills, and overseas plans. </p>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>As CEI states: “Among federal financial regulatory agencies, none poses a greater threat to cryptocurrency and the associated blockchain technologies than the SEC. . . . [T]he increasingly heavy hand of SEC regulation  has come under scrutiny for stifling opportunities for startup entrepreneurs to raise capital and for middle class investors to get better returns on their investments.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Of particular concern is “<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a>.” The risk-averse Chairman is  <a href=\"https://www.crowdfundinsider.com/2019/05/146775-has-the-sec-slammed-the-brakes-on-blockchain-innovation/\">reportedly</a> focused on nixing anything that may risk of comfy post-Chair landing. As CEI explains: “Rather than focus on [President Trump’s] call for easing regulatory burdens, Clayton has spent much of his time expanding the SEC’s reach to go after firms and products that Congress has never given it the authority to regulate.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":417,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-3.gif\" alt=\"\" class=\"wp-image-417\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The paper examines SEC hesitation in several areas: It rejected several proposals for Bitcoin-related exchange-traded-funds. Its 2017 DAO report fed an enforcement-first frenzy that shook the industry. Its long-awaited token “<a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">guidance</a>” was a widely panned mess.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":1588,\"align\":\"center\",\"width\":485,\"height\":364} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Simpson-GIF.gif\" alt=\"\" class=\"wp-image-1588\" width=\"485\" height=\"364\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>And CEI doesn’t mention the Commission’s refusal to qualify a Reg A+ token sale, though some have waited <a href=\"https://www.crowdfundinsider.com/2019/05/146775-has-the-sec-slammed-the-brakes-on-blockchain-innovation/\">years</a>.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\">The SEC expanded <em>Howey</em> on its own</h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>CEI’s best insight is highlighting the Commission’s “secondary market” criteria to define securities. The Commission simply invented this metric: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>One of the new factors the SEC seems to consider to deem a cryptocurrency a security is the existence of a secondary market—a characteristic that previously had played no part in the [Supreme Court] <em>Howey</em> test. Whether the oranges from the Howey groves could be sold in different markets was never at issue in the 1946 Supreme Court case . . . Nevertheless, the SEC guidance mentions the term “secondary market” seven times. The guidance advises that even in cases where coins can be used in a functional market for goods and services, “there may be securities transactions if … there are limited or no restrictions on reselling those digital assets.”</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\">What CEI gets wrong on crypto</h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But CEI isn\'t all right either. The paper uses “cryptocurrency” as a catchall for all digital assets. This is imprecise. The CFTC regulates currencies like bitcoin yet the paper tags all privately issued digital assets as such.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Most obvious is the paper’s labeling of ‘Kin’ produced by the Canadian company Kik Interactive, Inc. <a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik</a>  knew it had a security problem when it sold its first Kin warrants. Its first sale arose under the security exemption Reg D. It also barred Canadians and residents of some U.S. states from buying. After first using an exemption, it then promoted a ‘Token Distribution Event.’ Thus, the second sale ignored exemptions that would have allowed a public sale.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Some may blame the SEC’s uneven guidance and expansion of Supreme Court holdings for the Kik overreach. But the company knew the risk of a securities designation. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, the paper addresses the common but overblown concern of slippery-slope federal expansion.  In their zeal to securitize every digital asset, the SEC has unwittingly placed common bartering at risk like comic books, vintage <a href=\"https://www.crowdfundinsider.com/2019/05/147688-when-howey-the-sec-corpfin-met-bourbon/\">alcohols</a>, and airline rewards. It’s a legitimate talking point but impractical reality. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\">CEI\'s crypto criticism moves the ball forward</h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>CEI’s nonprofit status shields it from the risk private attorneys face because it doesn’t represent clients before the Commission.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Most SEC criticism arrives in anonymous cowardice so CEI deserves credit. The more pressure “outsiders” put on the agency the more responsive it may be. Perhaps criticism will force Congress to finally exert control. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via&nbsp;<a href=\"http://www.thecrowdfundinglawyers.com/\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph /-->','CEI blasts SEC, “Shallow-End Jay,” for crypto intransigence','','publish','open','open','','competitive-enterprise-institute-criticizes-sec-shallow-end-jay-for-crypto-intransigence','','','2019-07-15 17:38:13','2019-07-15 17:38:13','',0,'https://www.thecrowdfundinglawyers.com/?p=1589',0,'post','',0),(1593,1,'2019-07-01 12:45:25','2019-07-01 12:45:25','','CE Logo 2','','inherit','open','closed','','ce-logo-2','','','2019-07-01 12:45:25','2019-07-01 12:45:25','',1589,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/CE-Logo-2.jpg',0,'attachment','image/jpeg',0),(1599,1,'2019-07-01 23:34:01','2019-07-01 23:34:01','','AR-170219958','','inherit','open','closed','','ar-170219958','','','2019-07-01 23:34:01','2019-07-01 23:34:01','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/AR-170219958.jpg',0,'attachment','image/jpeg',0),(1600,1,'2019-07-01 23:34:17','2019-07-01 23:34:17','','Heritage','','inherit','open','closed','','heritage','','','2019-07-01 23:34:17','2019-07-01 23:34:17','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Heritage.jpg',0,'attachment','image/jpeg',0),(1753,1,'2019-07-13 21:48:33','2019-07-13 21:48:33','','Patriot GIF','','inherit','open','closed','','patriot-gif','','','2019-07-13 21:48:33','2019-07-13 21:48:33','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Patriot-GIF.gif',0,'attachment','image/gif',0),(1755,1,'2019-07-13 22:46:58','2019-07-13 22:46:58','<!-- wp:paragraph -->\n<p>The Securities and Exchange Commission (SEC) versus the Financial Conduct Authority (FCA) isn\'t Washington versus Cornwallis. But the stakes are still high in the trans-Atlantic battle for equity crowdfunding and token-economy leadership. And this time the Brits are winning. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":1753,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Patriot-GIF.gif\" alt=\"\" class=\"wp-image-1753\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Recent news contrasts the regulatory frameworks. The US has the SEC, led by Chairman “<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End” Jay Clayton</a>. Clayton embodies ‘<a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">the Machine</a>.’ These are the credential-and-prestige obsessed cabal of East Coast lawyers and fancy-degreed personages that land each year at name-brand federal agencies to direct the American economy while disclaiming responsibility for the results.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Conversely, the UK has the FCA, a single-layered bureaucracy that fosters initiative and moves faster than the security line at DCA. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h2 style=\"text-align: center;\">Two Companies, Two Regulators, Two Different Results</h2>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Two companies trying to push the token ball forward show the contrasting regulatory styles and opposite results.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a rel=\"noreferrer noopener\" href=\"https://www.prometheum.info/\" target=\"_blank\">Prometheum</a> is a U.S.-based blockchain company looking to create a tokenized trading system open to all. It is <a href=\"https://www.crowdfundinsider.com/2018/05/133327-prometheum-files-reg-a-for-ico-claims-they-have-cracked-the-code-as-to-how-to-accomplish/\">described</a> as “a soup-to-nuts securities ecosystem, from issuance to trading through clearing and settling.” Since the company\'s 2017, Reg A+ Form 1-A token sale filing it has waited in vein for qualification. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(See here for the differences between <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>, <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>, and <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Prometheum’s vision involves many steps including qualification by the SEC for <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>, FINRA-approved broker-dealer registration, and an alternative trading system license. But two-and-a-half years on, it is <a href=\"https://www.crowdfundinsider.com/2019/07/149222-prometheum-digital-asset-network-still-waiting-on-reg-a-qualification-by-sec/\">still waiting</a> on the first part. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Conversely, <a href=\"https://tokenmarket.net/\">TokenMarket</a> is doing the same thing in the UK. The token-based investment platform will offer tokens this week-- just <em>one year</em> after acceptance into the FCA’s regulatory sandbox. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The sandbox allowed TokenMarket to bypass the U.S.’s multi-layered, multi-agency approach and start a security token raise in 12 months. According to <a href=\"https://www.crowdfundinsider.com/2019/06/148287-tokenmarket-receives-approval-from-fca-to-run-security-token-offering-in-regulatory-sandbox/\">Crowdfund Insider</a>, “Once TokenMarket has completed its STO [securities token offering] and exited the sandbox the Company will be able to organize STOs for UK and international companies looking to source growth finance by tapping TokenMarket’s pool of 170,000 investors.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h2 style=\"text-align: center;\">SEC and FCA Take Different Paths on Equity Crowdfunding</h2>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But the differences go beyond flashy token sales to the heart of alternative capital raising. Equity crowdfunding as a concept has flourished via the FCA while the SEC has resisted it. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The equity crowdfunding story traces roughly back to 2012. That year, President Obama signed the JOBS Act that allowed regular people widespread investment opportunities in private companies. That same year the <em>Wall Street Journal</em> <a href=\"https://www.crowdfundinsider.com/2012/11/4328-crowdfunding-gains-traction-in-u-k/\">profiled</a> British company <a href=\"http://escapethecity.org/\">escapethecity.org</a>, taking advantage of the year-old UK version. The firm raised £600,000 in 16 days from around 400 people for nonvoting shares and swag via <a href=\"http://www.crowdcube.com/\">Crowdcube</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Stated one founder, “We weren’t in a position to go to\nfriends and family for the amount we were looking for, we didn’t want to go to\nthe bank and we decided venture capital firms weren’t really for us.” This is a\ncommon <a href=\"https://www.thecrowdfundinglawyers.com/venture-capital-versus-equity-crowdfunding/\">startup\noutlook</a>, and seven years later the company is thriving. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But if an American <em>WSJ</em> reader saw this and wanted to copy\nit, he would have a long wait. Signing the act was only the first step. The <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">SEC</a>\ntook four years to write the rules and showed hostility toward the work.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h2 style=\"text-align: center;\">SEC was hostile to Equity Crowdfunding from the start</h2>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>In March 2017, Edward Knight, Executive Vice President and\nGeneral Counsel of NASDAQ&nbsp;<a href=\"http://www.thecrowdfundinglawyers.com/2018/05/16/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">testified</a>:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>From the outset the SEC’s view of [Reg CF] was they were not for this they and made it, shall I say, needlessly complicated and did not approach it except as this this was something where the public is going to get harmed and we need to narrow it as much as possible.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>It restricted it to a degree that by all accounts <a href=\"https://www.thecrowdfundinglawyers.com/mr-clayton-tear-down-this-law-or-at-least-the-parts-that-suck/\">Reg\nCF-type equity crowdfunding</a> has languished. It desperately needs Congressional\ntweaking to fix the SEC mess. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":1588,\"align\":\"center\",\"width\":412,\"height\":309} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Simpson-GIF.gif\" alt=\"\" class=\"wp-image-1588\" width=\"412\" height=\"309\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>A recent <a href=\"https://www.thecrowdfundinglawyers.com/sec-reg-cf-report-details-data-criticisms/\">SEC\nReg CF report</a> reviewed progress three years on and compared it to the UK. According\nto the <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/06/SEC-regulation-crowdfunding-2019_0.pdf\">report</a>,\n“In the U.K., the largest European crowdfunding market, which started in 2011, crowdfunding\nissuers raised approximately £333 million ($450 million) in 2017, significantly\nlarger than the reported amounts raised by U.S. crowdfunding issuers over the\nperiod May 16, 2016 – December 31, 2018.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>What accounts for the variance? The SEC states:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>[D]ifferences in regulatory regimes and tax treatments of crowdfunding securities investments. For example, crowdfunding investors in the U.K. are subject to more favorable tax treatment compared to their U.S. peers. In addition . . . the U.K. crowdfunding market is older and more developed than the U.S. crowdfunding market. U.K. regulations also generally permit issuers to raise larger amounts of capital through crowdfunding offerings compared to the offering thresholds in [Reg CF]. </p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Exactly. The FCA nurtured equity crowdfunding and paved the way for success. But the SEC treated <a href=\"https://www.thecrowdfundinglawyers.com/sec-reg-cf-report-details-data-criticisms/\">equity crowdfunding</a> as a menace it must quarantine and monitor like a tourist with Ebola. And the difference created winners on one side and frustrated startups tired of ‘Machine’ bureaucrats like ‘<a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">NPC Valerie</a>’ who lack private-sector chops. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h2 style=\"text-align: center;\">Is the SEC Grasping its Equity Crowdfunding problem?</h2>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Help, however, may be on the way. Just last week the SEC finally <a href=\"https://www.coindesk.com/sec-gives-younows-ethereum-token-props-reg-a-approval\">qualified</a> its first two Reg A+ token sales. SEC Commissioner Hester Peirce, aka <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Crypto Mom</a>, has pressured the agency to hurry reviews. Moreover, the Commission is now streamlining the private exemptions, <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>, <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a>, and <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>. Finally, word is <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">“Shallow-End Jay” Clayton</a> will jump to his chosen academic post by next election. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It’s hard to know how much creative juice SEC sloth cost the American economy. But hopefully changes will break the U.S. mindset an equity crowdfunding backwoods colony.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->','Why the Brits are Killing Us in Equity Crowdfunding','','publish','open','open','','why-the-brits-are-killing-us-in-equity-crowdfunding','','','2019-07-24 16:30:20','2019-07-24 16:30:20','',0,'https://www.thecrowdfundinglawyers.com/?p=1755',0,'post','',0),(1770,1,'2019-07-14 05:45:49','2019-07-14 05:45:49','','Firm Logo Small','','inherit','open','closed','','firm-logo-small','','','2019-07-31 09:37:54','2019-07-31 09:37:54','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Firm-Logo-Small.jpg',0,'attachment','image/jpeg',0),(1788,1,'2019-07-15 20:24:14','2019-07-15 20:24:14','<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The future of Facebook&#39;s Libra coin <a href=\"https://t.co/OVnjuqouPv\">pic.twitter.com/OVnjuqouPv</a></p>&mdash; Bitcoin (@Bitcoin) <a href=\"https://twitter.com/Bitcoin/status/1142331498349002752?ref_src=twsrc%5Etfw\">June 22, 2019</a></blockquote><script async src=\"https://platform.twitter.com/widgets.js\" charset=\"utf-8\"></script>','','','publish','closed','closed','','0c4998275b46d73e750680d3d739a05e','','','2019-07-15 20:24:14','2019-07-15 20:24:14','',0,'https://www.thecrowdfundinglawyers.com/0c4998275b46d73e750680d3d739a05e/',0,'oembed_cache','',0),(1835,1,'2019-07-18 00:39:42','2019-07-18 00:39:42','<iframe title=\"Patrolling the Block: Regulators Panel at DC Blockchain Summit 2019\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/6wIsII3c9H8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','4dcab5b33893d56c6b9df616f90db7c2','','','2019-07-18 00:39:42','2019-07-18 00:39:42','',0,'https://www.thecrowdfundinglawyers.com/4dcab5b33893d56c6b9df616f90db7c2/',0,'oembed_cache','',0),(1836,1,'2019-07-18 00:39:42','2019-07-18 00:39:42','<iframe title=\"Amy Winehouse - Valerie (Acoustic, Live, Best Quality)\" width=\"1080\" height=\"810\" src=\"https://www.youtube.com/embed/6pAz9UpnRKw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','ed3f9efb8eea20f34fc7843b019bfa7c','','','2019-07-18 00:39:42','2019-07-18 00:39:42','',0,'https://www.thecrowdfundinglawyers.com/ed3f9efb8eea20f34fc7843b019bfa7c/',0,'oembed_cache','',0),(1851,1,'2019-07-18 15:07:17','2019-07-18 15:07:17','<iframe title=\"DC Blockchain Summit 2019 - Livestream, March 6 (Day 1)\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/BVgO0UResBY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','dded75b602899737ae7f4a39b8b9e249','','','2019-07-18 15:07:17','2019-07-18 15:07:17','',0,'https://www.thecrowdfundinglawyers.com/dded75b602899737ae7f4a39b8b9e249/',0,'oembed_cache','',0),(1860,1,'2019-07-18 22:54:18','2019-07-18 22:54:18','<iframe title=\"An Evening with Ted Livingston, CEO of Kik (June 2017)\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/rqN7srwqRf8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','5db4883a80f8727a6751e8346a2d2a5b','','','2019-07-18 22:54:18','2019-07-18 22:54:18','',0,'https://www.thecrowdfundinglawyers.com/5db4883a80f8727a6751e8346a2d2a5b/',0,'oembed_cache','',0),(1861,1,'2019-07-18 22:54:19','2019-07-18 22:54:19','<iframe title=\"SEC Chairman Jay Clayton: Cryptocurrencies Like Bitcoin Are Not Securities\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/8YtZJRUak8E?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','a938f412c2a147f2ea97f0dfd6f2c30f','','','2019-07-18 22:54:19','2019-07-18 22:54:19','',0,'https://www.thecrowdfundinglawyers.com/a938f412c2a147f2ea97f0dfd6f2c30f/',0,'oembed_cache','',0),(1879,1,'2019-07-19 16:24:08','2019-07-19 16:24:08','<iframe title=\"About Trustwire\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/-IyZtwDuKug?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','da3cd39efe1a64697e6f6076be2023c5','','','2019-07-19 16:24:08','2019-07-19 16:24:08','',0,'https://www.thecrowdfundinglawyers.com/da3cd39efe1a64697e6f6076be2023c5/',0,'oembed_cache','',0),(1885,1,'2019-07-19 17:50:35','2019-07-19 17:50:35','<iframe title=\"SEC Chairman Jay Clayton: Cryptocurrencies Like Bitcoin Are Not Securities\" width=\"1080\" height=\"608\" src=\"https://www.youtube.com/embed/8YtZJRUak8E?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen></iframe>','','','publish','closed','closed','','baec217d32e7231dccf25a6068a04f11','','','2019-07-19 17:50:35','2019-07-19 17:50:35','',0,'https://www.thecrowdfundinglawyers.com/baec217d32e7231dccf25a6068a04f11/',0,'oembed_cache','',0),(1942,1,'2019-07-21 20:22:35','2019-07-21 20:22:35','<!-- wp:paragraph -->\n<p>Are you sick of sequels? Bored with reboots? Aghast at award shows? Horrified by Harvey Weinstein? Well, don’t despair, <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding </a>will soon kill Hollywood as we know it.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":1753,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Patriot-GIF.gif\" alt=\"\" class=\"wp-image-1753\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Although nascent, <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding</a> and blockchain will revolutionize Hollywood. It will oust the gatekeepers and replace them with crowds. The people will thus influence every aspect of entertainment production and distribution. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Crowdfunding isn’t new, equity crowdfunding is</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>The concept of crowdfunding entertainment isn’t new. Indeed, filmmakers have used crowdfunding methods to supplement production. But with mixed results. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Playwright Phelim McAleer and wife Ann McElhinney who run their own <a href=\"http://annandphelim.com/\">media company</a> are one example. They recently produced the searing play ‘<a href=\"https://news.yahoo.com/fbi-lovebirds-d-c-satire-222720609.html\">FBI Lovebirds</a>’ and have crowdfunded several projects, including the abortion drama <a href=\"http://www.gosnellmovie.com/about/\">Gosnell</a>. And independent film maker Cassie Jaye also crowdfunded part of her surprise hit ‘<a href=\"https://www.kickstarter.com/projects/cassiejaye/the-red-pill-a-documentary-film/\">The Red Pill</a>.’ But this ‘Kickstarter model’ comes with severe drawbacks as one <a href=\"https://www.financialpoise.com/hollywood-produces-an-early-equity-crowdfunding-hit/\">article explained</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>While crowdfunding has been a great tool for passion projects and for garnering support for projects the industry left behind (<a rel=\"noreferrer noopener\" href=\"http://www.marsinvestigations.net/movie/index.php/stats/stats_analysis\" target=\"_blank\">Veronica Mars raised $5.7M from 91,500 people, Mystery Science Theater 3000 raised $5.7M from 48,000 backers</a>), most of today’s crowdfunding campaigns operate under a “donation” model with supporters giving to support the cause. Rewards and bragging rights come with some of the higher-level donations, but it’s still fundamentally a donation—just not a tax-deductible one.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>. . . </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Under the current model, creators are essentially paying for the production by pre-selling the DVD directly to fans. In this scenario, the filmmaker has prematurely weakened the commercial potential for the project. A distribution or acquiring company will treat the project as having gone straight to DVD, which immediately clouds the most lucrative licensing windows, most of which comes well before the DVD release. As a filmmaker, three words you never want to hear associated with your film are “straight to DVD.”</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>But <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity crowdfunding </a>via the JOBS Act pushes crowdfunding mainstream. It allows anyone to invest in a movie pre-production through <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> or <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a>. Investors now get a financial stake, not just swag or access (although that is still offered). This will remake the current system. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The Hollywood model is old and corrupt</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>As I explained previously <a href=\"https://www.thecrowdfundinglawyers.com/is-crowdfunding-about-to-revolutionize-moviemaking/\">movie production</a> is less transparent than a software TOS agreement: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Currently the movie business operates in an esoteric netherworld, full of middlemen, secret contracts, and mafia-like protection rackets. Major studio heads and a few A-list actors gain fortune and fame and everyone else ekes out a living even while working on summer blockbusters. Hollywood’s financial structure is murkier than the latest spy-thriller. According to opaque industry accounting, even runaway hits like The Hobbit trilogy lose money.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>.  . . </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>How are movie dollars made? According to reports, major studios generate their bulk revenue from licensing deals with broadcast networks, all of which are owned by the studio’s corporate conglomerates. This makes it nearly impossible for outsiders lacking massive archives to break through without a steady stream of hits.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:image {\"id\":417,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-3.gif\" alt=\"\" class=\"wp-image-417\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>This model is dying. It is a world absent ideas. According to <a href=\"https://thetylt.com/entertainment/are-there-too-many-hollywood-reboots-and-sequels\">Indiewire</a> only 38% percent of films are “original,” another outlet pegs it at 25%. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And the public is noticing. In 2018, Hollywood suffered its<a href=\"https://www.hollywoodreporter.com/news/box-office-hollywood-suffers-worst-march-downturn-memory-1097200\"> worst month</a> in memory. That year also saw the <a href=\"https://theplaylist.net/oscars-2018-ratings-20180305/\">lowest rated</a> Oscar Award show,  and 2019 saw only a slight<a href=\"https://observer.com/2019/02/oscars-tv-ratings-academy-awards-abc-viewership/\"> rebound</a>.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The future studio is here</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://legionm.com/\">Legion M</a> has created new model. The upstart studio just began a new funding round on the equity crowdfunding portal<a href=\"https://wefunder.com/legionm\"> WeFunder</a>. The fan-driven company is trying to reach one million investors. Thus far is has raised $7M from 16,000 investors and boasts a 100,000-strong community. Its success has already attracted Hollywood big shots like Kevin Smith, Nicolas Cage, Anne Hathaway, and Stan Lee. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The future movie is here </strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>If Legion M represents the future movie studio, <em>Atari:\nFistful of Quarters </em>is a further advance. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The not-yet-made movie about Atari founder Nolan Bushnell introduces a <a href=\"https://www.businesswire.com/news/home/20190709005537/en/tZERO-Partners-Atari-Movie-Tokenize-Major-Motion\">new project-focused funding scheme</a>. tZERO recently stated it would finance the movie using blockchain via a token sale. tZERO’s Patrick M. Byrne, stated, “We have been looking for the team to crack the code for Hollywood and bring much needed transparency and accountability to an industry that has been historically resistant to change.” Indeed. Details are still sketchy. But regardless if it’s a hit or flop, pre-selling movie tokens with embedded rights to a movie’s direction and finances is what’s next. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":981,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Jen-An2.gif\" alt=\"\" class=\"wp-image-981\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Hollywood won’t go quietly</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But don’t expect the establishment to just accept the change.\nPeople never concede power, upstarts take it. Hollywood will try to steal the\nfuture while claiming to nurture it. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Indeed, this is happening with cryptocurrencies. <a href=\"https://www.thecrowdfundinglawyers.com/mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right/\">Mark Zuckerberg and a multi-national corporate cabal</a> are trying to seize the market while claiming altruism. &nbsp;They assert they are merely helping the poor reduce banking costs. But it’s PR poppycock. In fact, they are trying to capture and blunt the crypto phenomenon before it swallows them. Expect announcements of studio tokens soon. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Movie executives like Harvey Weinstein (pre-exposure) and Mark Zuckerberg are kindred spirits. They are trying to blunt competition by stopping alternatives. In doing so they force the masses into compliance with their business model and world vision. But they will fail. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As George Gilder writes in ‘<a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Life After Google</a>,’ data-capturing firms won’t stop the new world. Future economic power won’t rise to the top of the tech ‘stack.’ It will stay with the individual. Hollywood will just be another corrupt mote left in the wake.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph /-->','Equity Crowdfunding Puts Hollywood on Kill List','','publish','open','open','','equity-crowdfunding-puts-hollywood-on-kill-list','','','2019-07-26 05:36:56','2019-07-26 05:36:56','',0,'https://www.thecrowdfundinglawyers.com/?p=1942',0,'post','',0),(2045,1,'2019-07-24 16:10:27','2019-07-24 16:10:27','','Hollywood','','inherit','open','closed','','hollywood','','','2019-07-24 16:11:45','2019-07-24 16:11:45','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Hollywood.jpg',0,'attachment','image/jpeg',0),(2047,1,'2019-07-24 16:12:56','2019-07-24 16:12:56','','Mark Zuckerberg (3)','','inherit','open','closed','','mark-zuckerberg-3','','','2019-07-24 16:14:09','2019-07-24 16:14:09','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Mark-Zuckerberg-3.jpg',0,'attachment','image/jpeg',0),(2049,1,'2019-07-24 16:16:16','2019-07-24 16:16:16','','cryptomom-1','','inherit','open','closed','','cryptomom-1','','','2020-09-28 18:05:40','2020-09-28 18:05:40','',5440,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/cryptomom-1.png',0,'attachment','image/png',0),(2052,1,'2019-07-24 16:23:53','2019-07-24 16:23:53','','NPC Valerie','','inherit','open','closed','','npc-valerie','','','2019-07-24 16:46:04','2019-07-24 16:46:04','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/NPC-Valerie.jpg',0,'attachment','image/jpeg',0),(2053,1,'2019-07-24 16:29:44','2019-07-24 16:29:44','','Washington','','inherit','open','closed','','washington','','','2019-07-24 16:45:43','2019-07-24 16:45:43','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Washington.jpg',0,'attachment','image/jpeg',0),(2079,1,'2019-07-24 17:22:38','2019-07-24 17:22:38','','Logo 7','','inherit','open','closed','','logo-7','','','2019-07-24 17:22:38','2019-07-24 17:22:38','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Logo-7.png',0,'attachment','image/png',0),(3462,1,'2019-07-28 19:31:33','2019-07-28 19:31:33','','Blockstack','','inherit','open','closed','','blockstack','','','2019-07-28 19:49:19','2019-07-28 19:49:19','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Blockstack.png',0,'attachment','image/png',0),(3463,1,'2019-07-28 19:32:33','2019-07-28 19:32:33','','Michael Scott GIF No','','inherit','open','closed','','michael-scott-gif-no','','','2021-06-20 02:27:49','2021-06-20 02:27:49','',7710,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Michael-Scott-GIF-No.gif',0,'attachment','image/gif',0),(3464,1,'2019-07-28 19:33:06','2019-07-28 19:33:06','','Ron Paul GIF','','inherit','open','closed','','ron-paul-gif','','','2019-07-28 19:33:06','2019-07-28 19:33:06','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Ron-Paul-GIF.gif',0,'attachment','image/gif',0),(3465,1,'2019-07-28 20:06:11','2019-07-28 20:06:11','<!-- wp:paragraph -->\n<p>The <a href=\"https://www.crowdfundinsider.com/2019/04/146274-blockstack-files-form-1-a-to-issue-stack-tokens-under-reg-a/\">years-long</a>\nwait is over. The Securities and Exchange Commission (SEC) finally approved a <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> token sale. Indeed,\nBlockstack is already publicly <a href=\"https://stackstoken.com/\">selling Stack\nTokens</a>. If it works, it will bring a new and better internet.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3464,\"align\":\"center\",\"width\":407,\"height\":271} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Ron-Paul-GIF.gif\" alt=\"\" class=\"wp-image-3464\" width=\"407\" height=\"271\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Heretofore, the SEC’s refusal to qualify a <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> token sale <a href=\"https://www.crowdfundinsider.com/2019/07/149750-attorney-doug-ellenoff-comments-on-blockstack-reg-a-offering-chameleon-tokens-sometimes-they-are-securities-and-sometimes-they-are-arguably-not/\">long\nflummoxed</a> crypto-philes. <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> is ideal for crowdfunding\ncrypto projects as it most aligns with the ‘Wild West’ <a href=\"https://www.thecrowdfundinglawyers.com/sec-unleashes-hurricane-ico/\">ICO\ncraze of 2017</a>, while complying with securities laws. <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+’s</a> benefits are straightforward.\nThe $50 million maximum meets tech startup needs (although Congress will likely\nsoon raise it to <a href=\"https://www.crowdfundinsider.com/2018/03/130200-us-house-representatives-passes-legislation-raise-reg-cap-75-million/\">$75\nmillion</a>). Anyone can purchase <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> securities. And\nbuyers can trade them instantly. Thus startups prefer it to <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> ($1 million limit)\nor <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>\n(accredited investors only). </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>SEC <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg\nA+</a> reluctance typified its stance toward shiny things under Chairman <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">“Shallow-End\nJay”</a> Clayton. Mr. Clayton and his cohorts are <a href=\"https://www.thecrowdfundinglawyers.com/cryptomom-versus-the-machine/\">the\n“Machine”</a>: the credential-and-prestige obsessed cabal of East Coast lawyers\nand fancy-degreed personages that land each year at name-brand federal agencies\nto pilot the American economy while disclaiming responsibility for the results.\nIn the SEC crypto-sphere, <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC\nValerie</a> leads the way. But critics panned her main effort, <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">13-pages\nof crypto “guidance</a>,” as prolix and overreaching. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Crypto Mom gets a win</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Commissioner Hester Peirce, aka <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Crypto\nMom</a> remains a contrary voice encouraging regulatory modesty. She has long criticized\nthe SEC’s glacial pace and risk-averse jeremiads, including with <a href=\"https://www.thecrowdfundinglawyers.com/crypto-mom-to-npc-valerie-get-a-job/\">Reg\nA+ token sales</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>She won this round against the forces of Machine reaction. But the victory is incomplete. First, Blockstack represents one qualification, lots more languish. Some have waited years; others have given up. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Secondly, even this victory is limited. Blockstack restricted\npost-sale Stack Token releases. Buyers will get them piecemeal over 24 months.\nInstant liquidity is a major <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> virtue. If all\ncompanies must concede it for qualification it will hurt the market. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, the SEC leaves uncertain how these security tokens become\n<a href=\"https://www.crowdfundinsider.com/2019/07/149750-attorney-doug-ellenoff-comments-on-blockstack-reg-a-offering-chameleon-tokens-sometimes-they-are-securities-and-sometimes-they-are-arguably-not/\">utilities</a>\nalthough all agree that is the plan. Blockstack says its board will decide and\npegs a year out as sufficient. No one knows how this will work. Will SEC Enforcement\nultimately decide when tokens are no longer securities? If so, that’s not\nprogress. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3463,\"align\":\"center\",\"width\":380,\"height\":310} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Michael-Scott-GIF-No.gif\" alt=\"\" class=\"wp-image-3463\" width=\"380\" height=\"310\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Blockstack is the anti-Facebook</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Blockstack’s vision makes its qualification huge. It wants\nto change the system by removing online power from oligarchs and return it to users.\nAs stated in its <a href=\"https://www.disclosurequest.com/form/blockstack-token-llc/0001104659-19-029828/offering-circular\">circular</a>,\n“The ultimate goal in creating the Blockstack network is to enable application\ndevelopers to build and publish decentralized applications [Dapps] without the\nneed to maintain central databases, and for users of these decentralized\napplications to retain control over their own data.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Author George Gilder explained the downsides of the current\nmodel in <em><a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Life\nAfter Google</a></em>. Facebook, Twitter, Google/YouTube, and Amazon et al. control\nthe web by capturing the top of the “stack” where <a href=\"https://www.crowdfundinsider.com/2017/10/123842-next-coinlist-blockstack-initial-coin-offering/\">internet\npower</a> resides. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>“Free” services force users to relinquish security, property rights, privacy, control of adverts etc. And they are vulnerable to oligarchical whims. “Walled gardens” censor the masses, capture their data, and make it painful to leave. In turn, the companies respond to various pressure points including governments, activists, internal politics, shaming culture etc. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As Blockstack co-founder Ryan Shea stated, “Apps were not\nresponsive to customers so much as designed to lock them in, you go onto the\nnet and Facebook or Google or Dropbox or Pinterest tor Amazon and all want you\nto move in, giving them all your documents, music providing storage for your\nlife. Medical sites want to store all your health data. You have to petition to\nit went you want it.” </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The Zuckerbergs will try to keep their power</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right/\">Mark Zuckerberg</a> is the poster child. He became a multi-billionaire by repackaging and selling user data to the highest bidder. All the while he conspired with governments and activists to censor speech. And he is trying to recreate this model with financial transfers. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right/\">Libra’s\ngoal</a> is the entrenchment of very rich, powerful institutions that have much\nto lose in a decentralized world. It is designed to kill blockchain’s future\nand retrench oligarchic power for decades hence; the&nbsp;<a href=\"https://libra.org/en-US/\">sappy videos</a>&nbsp;are PR. Whatever\nCongressional assurances, Libra’s “gold mine” is access to crypto wallets it\ncreates and controls. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>But the Blockstack model keeps control at the bottom of the stack</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But within Blockstack’s network, users will move from Dapp\nto Dapp without separate logins or remitting personal information. They will\nstore their data in encrypted clouds and release it when they want. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Allowing users to control their own information keeps the power\nat the individual level—the bottom of the stack. In the future tokenized world,\nindividuals will yield time and attention for token rewards. The oligarchs will\nadapt or die. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Qualification of Stack Tokens clears Blockstack’s last legal\nhurdle. The sale precedes building its blockchain. Next comes mining, Dapp\ndevelopment, and user rewards. The new internet is coming. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The SEC should recognize what <a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Gilder</a>\nand the Blockstack community see. The online world is changing. Governments\nshould fiercely protect against fraud but otherwise step back and marvel at what’s\nnext. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>\nvia <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a>\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph /-->','It’s happening! 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header_font_size=\"22px\" body_font=\"Black Ops One|||||on|||\" text_orientation=\"left\" width=\"100%\" max_width=\"100%\" min_height=\"1000px\" height=\"999px\" max_height=\"825px\" custom_padding=\"307px||\"][/et_pb_sidebar][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=\"1\" disabled_on=\"on|on|off\" _builder_version=\"3.24\" use_background_color_gradient=\"on\" background_color_gradient_start=\"rgba(239,239,191,0.71)\" background_color_gradient_end=\"#005491\" background_color_gradient_type=\"radial\" background_color_gradient_direction_radial=\"bottom\" background_color_gradient_start_position=\"4%\" background_color_gradient_end_position=\"46%\" width=\"100%\" min_height=\"468px\" height=\"309px\" saved_tabs=\"all\"][et_pb_row column_structure=\"1_4,1_4,1_4,1_4\" use_custom_gutter=\"on\" gutter_width=\"4\" make_equal=\"on\" disabled_on=\"on|on|off\" _builder_version=\"3.25\" width=\"100%\" max_width=\"1689px\" module_alignment=\"center\" custom_margin=\"|||\" custom_padding=\"|41px||\"][et_pb_column type=\"1_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"3.24\" width_tablet=\"84%\" width_last_edited=\"on|desktop\" custom_margin=\"|12px||\"]<p>[custom-twitter-feeds]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text disabled_on=\"on|off|off\" _builder_version=\"3.24\" width_tablet=\"84%\" width_last_edited=\"on|tablet\"]<p>[custom-twitter-feeds hashtag=\"#crowdfunding\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"3.24\"]<p>[custom-twitter-feeds hashtag=\"#crypto\"]</p>[/et_pb_text][/et_pb_column][et_pb_column type=\"1_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text disabled_on=\"on|on|off\" _builder_version=\"3.24\" width=\"100%\" custom_padding=\"|12px||\"]<p>[custom-twitter-feeds screenname=\"SEC_News\"]</p>[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]','Blog Home','','publish','closed','closed','','blog-home','','','2019-07-31 08:54:17','2019-07-31 08:54:17','',0,'https://www.thecrowdfundinglawyers.com/et_pb_layout/blog-home/',0,'et_pb_layout','',0),(3628,1,'2019-08-07 19:16:53','2019-08-07 19:16:53','','tokens','','inherit','open','closed','','tokens','','','2019-08-07 19:18:11','2019-08-07 19:18:11','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/tokens.png',0,'attachment','image/png',0),(3629,1,'2019-08-07 19:49:52','2019-08-07 19:49:52','<!-- wp:paragraph -->\n<p>The social media future is now and it’s glorious. Token rewards via blockchain-based decentralized apps (dApps) will kill the online oligarchy and enable a cleaner, user-powered version. Indeed, tokens, as dApp currency, will do what new laws and anti-trust suits cannot: remove Silicon Valley control of the web. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A casual look at the news shows no one likes the online present. Some fear censorship and the arbitrary way popular platforms suspend, demonetize, and deplatform. Yet others object to massive corporate power and the unceasing ambition to broach further domains. *Cough, <a href=\"https://www.thecrowdfundinglawyers.com/mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right/\">Mark Zuckerberg</a>, Cough.*</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3463,\"align\":\"center\",\"width\":375,\"height\":306} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/07/Michael-Scott-GIF-No.gif\" alt=\"\" class=\"wp-image-3463\" width=\"375\" height=\"306\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The concerns are legit. Indeed, the plan wasn’t for a few companies to aggregate and curate the net. But it’s also flawed thinking. It suffers from the common mistake of assuming things as they are will remain so without collective fixes. Unfortunately, lawmakers who grew up in the age of record-cassette tape-CD won’t see the world as it will soon be. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Yet this doesn’t mean everything will go right or that corporations with spare billions won’t try to seize the internet’s third wave before it crests. *Cough <a href=\"https://www.thecrowdfundinglawyers.com/mark-zuckerberg-thinks-were-all-stupid-and-he-may-be-right/\">Mark Zuckerberg</a> Cough.* </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But current thinking shorts human ingenuity, super speedy adoption rates, and user fickleness. The pace of changing communication methods shows how. Email to text to social apps makes record-cassette tape-CD look like traversing the bronze to iron age. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Speedy adoption rates threaten Silicon Valley hegemony</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to a recent <a href=\"https://www.imf.org/en/Publications/fintech-notes/Issues/2019/07/12/The-Rise-of-Digital-Money-47097\">IMF\nreport</a>: “The adoption of WhatsApp was one-third faster than that of Gmail.\nAnd today, WhatsApp has surpassed Gmail in user-base and is well past the 1.5\nbillion users mark. The dominance of WhatsApp relative to standard\ntext-messaging solutions is even more stark.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But dApps and token rewards add a twist. What made previous acquisitions like YouTube, Instagram, and Whatsapp appealing to Google and Facebook respectively was not only their massive adoption but centralization. Thus the giants could add to their data silos, force more adverts, and make it even harder to leave. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And dApps don’t silo data and token rewards curtail the waste of conventional advertising. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Token rewards will fuel ‘the great unbundling’</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>What is coming is what George Gilder, author of <em><a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Life After Google</a></em>, dubs ‘the great unbundling.’ Adoption speed combined with cross-app functionality will kill the old data-hoarding and advert model. &nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Instead of walling users in, dApps replace authority with collaboration and data hoarding with data requesting. Indeed, the future social-media app won’t silo user data and those requesting attention must bargain for it. And users will trade attention and personal information for tokens. Moreover, they can jump the silo with a click. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":981,\"align\":\"center\",\"width\":524,\"height\":225} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/Jen-An2.gif\" alt=\"\" class=\"wp-image-981\" width=\"524\" height=\"225\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>As Don and Alex Tapscott put it in <em><a href=\"https://www.goodreads.com/book/show/25894041-blockchain-revolution\">Blockchain\nRevolution, How the Technology behind\nBitcoin is Changing Money, Business, and the World,</a></em>\n“Blockchain technology offers a credible and effective means not only of\ncutting out intermediaries, but&nbsp; also of\nradically lowering transaction costs, turning firms into networks, distributing\neconomic power, and enabling of wealth creation and a more prosperous future.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The list of token rewarding dApps grows daily</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Indeed, this happening now. <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a>, a blockchain ecosystem, received the first ever <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> token-sale qualification two weeks ago. <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> stores personal data on clouds and users float between dApps easily. Currently <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> <a href=\"https://www.stackstoken.com/static/offering-circular-20190711.pdf\">offers</a> 171 dApps from 100 developers. And it rewards developers in Stack Tokens. Presently, many of its current apps mimic legacy apps like Facebook and YouTube without concerns about data capture or censorship.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Brendan Eich’s Ethereum-based <a href=\"https://brave.com/\">Brave browser</a> works similarly. There users exchange token rewards for attention and spend them for content or donate them to preferred publishers. This tackles a huge web problem: the advert detritus we download to get “free” stuff. And according to Gilder, at popular publishers’ sites, as much as 79% of mobile data are ads. “On average, smartphone users pay twenty-three dollars per month for ads, trackers, scripts, and other diversionary chaff that bears malware, slow load times, piles on data plan costs, depletes battery life, and tramples privacy and property rights.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And like-models arrive seemingly every day. Bitcoin.com recently\nlisted “Blockchain Apps that pay you to post.” The most interesting are below, read\nthe full article <a href=\"https://news.bitcoin.com/crypto-social-media-is-breaking-free-how-10-blockchain-platforms-pay-you-to-post/\">here</a>.\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li><strong><a href=\"https://steemit.com/login.html\">Steemit</a>:</strong>\nThe first, it pays users in Steem. According to Bitcoin.com Steemit’s\nresistance to censorship set a mark others followed: “Neither the platform nor\nother users could deplatform anyone by reporting or flagging a post (a huge <a href=\"https://reason.com/2018/10/12/libertarian-and-police-accountability-pa/\">problem</a>\ncurrently for many giants in the field.”) </li><li><strong><a href=\"https://www.bitchute.com/\">Bitchute</a></strong>:\nA politically focused video-sharing platform juiced with token rewards. </li><li><strong><a href=\"https://www.minds.com/\">Minds</a></strong>:\nNoted for its <a href=\"https://wefunder.com/minds\">successful</a> <a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity\ncrowdfunds</a>. Minds threatens the social-media oligarchy resisting censorship\nand providing token rewards to creators and users. Based on the <a href=\"https://www.coindesk.com/blockchain-social-network-minds-is-migrating-to-ethereum-for-launch\">Ethereum</a>\nblockchain.</li><li><strong><a href=\"https://bitbacker.io/\">Bitbacker</a></strong>:\nCrypto free-speech donation platform for creators. Patreon without the\nmoralizing. </li></ul>\n<!-- /wp:list -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>No matter who wins, we all win</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>The market will decide which dApps win the adoption wars.\nBut we all will share their victories. Every move away from the current data silo/forced\nadvert model is step toward a faster, cleaner, user-focused internet. Token rewards\nare the key to making this new model go and we can all join the ride. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>\nvia <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a>\n</p>\n<!-- /wp:paragraph -->','How Token Rewards will Kill Social Media','','publish','open','open','','how-token-rewards-will-kill-social-media','','\nhttps://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/','2019-08-07 19:55:22','2019-08-07 19:55:22','',0,'https://www.thecrowdfundinglawyers.com/?p=3629',0,'post','',0),(3656,1,'2019-08-15 18:59:42','2019-08-15 18:59:42','<!-- wp:paragraph -->\n<p>The Kik lawsuit vs the Securities and Exchange Commission (SEC) got even uglier with <a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik’s</a> <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/08/SEC-v-Kik-Interactive-Anser-to-Complaint-8.6.19-Case-119-cv-05244-AKH.pdf\">latest reply</a>. Indeed, the company <a href=\"https://www.coindesk.com/kik-says-sec-twisted-facts-about-100-million-token-sale\">accused</a> the SEC of “playing dirty,” and claimed the dreaded Enforcement Division was seeking favorable “news cycles” not blind justice.&nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Of course, in theory the elected and judicial branches police alleged agency abuses. Reality is a different story. And the SEC’s tortured path to token securities shows how. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But instead of Congress or courts setting borders to cabin the SEC, the Commission has played unsupervised. It has produced a mishmash of conference statements, enforcement actions, tea-leaf reading, and finally <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">“guidance”</a> that confused more than enlightened. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":417,\"align\":\"center\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-3.gif\" alt=\"\" class=\"wp-image-417\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The SEC should have shunted token rules through a rulemaking\nwhere affected parties comment. And would-be issuers can immediately challenge without\npain of enforcement processes. Instead emerged the SEC’s Horsemen of Reaction: Chairman\n<a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">‘Shallow-End\nJay’</a> Clayton, Senior Advisor for Digital Assets and Innovation <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">‘NPC\nValerie’</a> Szczepanik, and Corp Fin Director ‘Bill the Butcher’ Hinman. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>And that is why the Kik lawsuit is so important. <a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik’s</a> present resolve to fight through trial allows courts to review the Commission’s legal and policy bearings. And prime among them is where decentralization fits in the securities milieu. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik lawsuit enables court to judge decentralization as a <em>Howey</em> extension</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>The SEC and courts use the dated <em>Howey</em> test to determine\nwhat products are securities. The test has four parts: (1) a contract,\ntransaction, or scheme (2) whereby a person invests money, (3) in a common\nenterprise, and (4) expects profits solely from the efforts of others. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But it’s not that simple. The courts urged by government\nenforcers have oft twisted the factors. For instance, the first part needn’t include\na “contract,” the second needn’t include “money,” no one takes “solely”\nseriously and so on. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Decentralization ideally rids “efforts” from the fourth prong\nthereby removing the securities status from ‘investment contracts.’ But as the <a href=\"https://www.thecrowdfundinglawyers.com/competitive-enterprise-institute-criticizes-sec-shallow-end-jay-for-crypto-intransigence/\">Competitive\nEnterprise Institute</a> and others show, the <em>Howey </em>test doesn’t include\ndecentralization. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Bill the Butcher announced decentralization at a San Francisco shindig&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>How did it get there? In typical commission fashion, Bill the Butcher, a staff-level functionary exclaimed this new criterion at a fancy San Francisco conference where security (the kind with badges) block the <em>hoi polloi</em>. And the ruling class pay upwards of $1,000 to attend. While discussing the Ethereum network last year he <a href=\"https://www.sec.gov/news/speech/speech-hinman-061418\">remarked</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>If the network on which the token or coin is to function is sufficiently decentralized — where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts — the assets may not represent an investment contract. Moreover, when the efforts of the third party are no longer a key factor for determining the enterprise’s success, material information asymmetries recede. As a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosures becomes difficult, and less meaningful.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>. . .</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions, and, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value. Over time, there may be other sufficiently decentralized networks and systems where regulating the tokens or coins that function on them as securities may not be required.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>The SEC Horsemen of Reaction stick together&nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>And when forced, <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow-End Jay</a> backed him in a <a href=\"https://coincenter.org/files/2019-03/clayton-token-response.pdf\">public letter</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>I agree with Director Hinman’s explanation of how a digital asset transaction may no longer represent an investment contract, if for example, purchasers would no longer reasonably expect a person or group to carry out the essential managerial or entrepreneurial efforts. Under those circumstances, the digital asset may not represent an investment contract under the <em>Howey </em>framework.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC\nValerie</a> then issued widely panned “guidance”: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>There are essential tasks or responsibilities performed and expected to be performed by an AP [Active Participant, yet another SEC invention], rather than an unaffiliated, dispersed community of network users (commonly known as a \"decentralized\" network).</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>And just like that the <em>Howey</em> test expanded. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3658,\"align\":\"center\",\"width\":438,\"height\":322} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Sponge-Bob-Amazing-GIF.gif\" alt=\"\" class=\"wp-image-3658\" width=\"438\" height=\"322\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The Enforcement Division now cites “decentralization” <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/08/SEC-v-Kik-Interactive-Anser-to-Complaint-8.6.19-Case-119-cv-05244-AKH.pdf\">in\npleadings</a>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>At the time of all these [token] sales, there was nothing to purchase using Kin, and critical elements of the decentralized economy that Kik had marketed – including a blockchain capable of processing transactions between buyers and sellers at the volume and speed necessary for running consumer applications, and a functioning rewards engine – did not exist.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Ultimately, Kik pursued the ICO without first achieving a decentralized economy for Kin, and without even ensuring that investors would be able to buy goods and services with the tokens upon their receipt.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Decentralization is good, clear rules applied evenly are better</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Some applaud SEC willingness to provide a security-less\ntoken pathway absent attendant expense and rules. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But the Commission has not answered decentralization\nquestions. And perhaps it has not even considered them. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The theory behind the decentralization comes from blockchain features. Blockchain ecosystems don’t function like normal issuers. Indeed lots of parties play substantive roles including miners, nodes, developers, and users. Thus, onerous disclosures <a href=\"https://www.lawandblockchain.eu/hinman-test/\">don’t make sense</a> when issuers have scant control. In the Bill the Butcher’s words, it wouldn’t be “meaningful.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik lawsuit should answer how SEC applies decentralization to blockchain issuers</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But the theory invites lots of theoretical and real-world\nproblems. And the SEC fallback of relying on individual “facts of\ncircumstances” welcomes bias and arbitrary enforcement as the Kik lawsuit <a href=\"https://cdn.crowdfundinsider.com/wp-content/uploads/2019/08/SEC-v-Kik-Interactive-Anser-to-Complaint-8.6.19-Case-119-cv-05244-AKH.pdf\">claims</a>.\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As <a href=\"https://ssrn.com/abstract=3326244\">Angela Walch\nasks</a>:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>When we talk about decentralization in context to the Hinman test, what do we refer to? Do we refer to the amount of developers involved in a project? To the amount of nodes? Amount of miners? Is it about the degree of influence the issuer has on the governance and future development of a project? Do we talk about the degree in which a token’s value is derived from businesses building on top of a protocol?</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>The system’s decentralization is in part a description of its governance [power] and part a description of the numerical, geographical, and ownership distribution of the computers within the network [physical attributes].</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Hinman focuses on the network as the decentralizing factor:\n“if the network…is sufficiently decentralized,” “as a network becomes truly\ndecentralized,” “[t]he network on which Bitcoin functions….appears to have been\ndecentralized for some time,” “based on my understanding of the present state\nof Ether, the Ethereum network and its decentralized structure,” and “there may\nbe other sufficiently decentralized networks and systems”). As <a href=\"https://ssrn.com/abstract=3326244\">Walch explains</a> Hinman conflates\nthe physical network as a gateway to explain power structure. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>In crisis Bitcoin and Ethereum centralize &nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Adding to the confusion, Bill the Butcher seems not to consider Bitcoin and Ethereum crises that caused temporary but dramatic centralized moments. For instance, in the fall of 2018 programmers discovered a bug in Bitcoin’s software that could affect coin output and ultimately kill the network. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A select group patched the bug in secret and got major mining pools on board minutes later. But the public didn’t know for days. And a similar hard fork occurred in 2013. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Likewise, Ethereum forked after the infamous <a href=\"https://www.thecrowdfundinglawyers.com/sec-unleashes-hurricane-ico/\">DAO fiasco</a>\nto deny a hacker stolen tokens. And in 2018 an invitation-only meeting took\nplace to discuss Ethereum changes. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In fact, Kik’s lawsuit argues under these metrics <a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kin</a>\nwas more decentralized than either Bitcoin or Ether at the time of sale (or\nintroduction) and achieved higher trading volumes since. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik lawsuit argues it’s as decentralized as others without legal troubles</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>But there’s more. It is interesting to note similarities between\nKik’s lawsuit pleadings and <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a>\nand Brave statements, both devoid of legal troubles. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Kik</strong>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik</a> sold Kik Points [precursor to Kin] to advertisers, who – rather than siphoning user data and using it to run targeted advertisements –would offer them as rewards to users who interacted with advertisers’ surveys or polls within Kik Messenger.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>It envisioned a decentralized, widely adopted currency that would be used for earning and spending within a variety of digital services offered by developers.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>[CEO Ted] Livingston reiterated that “the ultimate dream is for Kik to launch Kin, to launch this broader ecosystem, then for this broader ecosystem to not need Kik.”</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>In this vision, <a href=\"https://www.thecrowdfundinglawyers.com/sec-goes-for-kik-will-it-get-knifed/\">Kik</a> would be just one of a vast number of participants in this new digital economy.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p><strong>Blockstack</strong>: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Ultimately, <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> anticipates that the <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> network will become an independent, decentralized ecosystem, over which no one party, including Blockstack, will have control. Changes to the <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> Core will likely be proposed by third parties, without Blockstack’s approval</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>[A]s the <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a> network becomes increasingly decentralized, core developers other than those employed by Blockstack may become primarily responsible for the development and future success of the network.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p><strong>Brave</strong> (from <a href=\"https://www.thecrowdfundinglawyers.com/what-will-life-be-like-after-google/\">Life After Google</a>): </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>Into this breach [Brendan] Eich is hurling his one billion BATS—the unit of exchange for an ingenious new decentralized open-source and efficient digital advertising platform based on Vitalik Buterin’s Ethereum blockchain. Advertisers award BATS to publishers based on the attention of users measured by the pattern of their usage. Users too will be paid in BATS for acting ads that they want to see or choose to tolerate in exchange for micropayments. They can donate they BATS back to favored publishers or use them in exchange for content.</p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>Kik Lawsuit should define rules everyone knows in advance</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>The easy answer is Brave is a closed system and <a href=\"https://www.thecrowdfundinglawyers.com/its-happening-the-blockstack-reg-a-token-sale-and-a-new-internet/\">Blockstack</a>\nplayed by the rules and got Reg A+ qualified. But Ethereum did neither. And it’s\nhard tack to say as did <a href=\"https://www.sec.gov/news/speech/speech-hinman-061418\">Bill the Butcher\ndid</a>, “putting aside the fundraising.” The SEC’s problem with Kik is “the fundraising.”\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>From the outside it appears unelected bureaucrats with\nunlimited power deciding winners and losers based on <a href=\"https://www.thecrowdfundinglawyers.com/the-sec-mobilizes-for-war/\">obeisance</a>,\nmedia coverage, or worse. But this not to say Kik has clean hands. It <a href=\"https://www.thecrowdfundinglawyers.com/competitive-enterprise-institute-criticizes-sec-shallow-end-jay-for-crypto-intransigence/\">knew\nthe risks</a> by avoiding certain jurisdictions. Moreover, it could have\nstopped after its $50 million SAFT sale and sought a Reg A+ public sale. It\ntook a risk and is now rolling the dice in court. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>No one should oppose decentralization as a factor or perhaps the sole factor in when the magic transition happens. But it’s the government process that makes it distasteful. A court can better apply standards evenly and interpret rules openly and fairly. The Kik lawsuit should not leave Bill the Butcher, <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Shallow End Jay</a>, and <a href=\"https://www.thecrowdfundinglawyers.com/amy-winehouse-to-valerie-szczepanik-come-on-over/\">NPC Valerie</a> to roam like unsupervised children in billion-dollar playgrounds. &nbsp; </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a> via <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a></p>\n<!-- /wp:paragraph -->','Kik Lawsuit must decide decentralization question','','publish','open','open','','kik-lawsuit-must-decide-decentralization-question','','','2019-08-15 19:04:31','2019-08-15 19:04:31','',0,'https://www.thecrowdfundinglawyers.com/?p=3656',0,'post','',0),(3658,1,'2019-08-15 18:29:21','2019-08-15 18:29:21','','Sponge Bob Amazing GIF','','inherit','open','closed','','sponge-bob-amazing-gif','','','2019-08-15 18:29:21','2019-08-15 18:29:21','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Sponge-Bob-Amazing-GIF.gif',0,'attachment','image/gif',0),(3698,1,'2019-08-25 13:59:36','2019-08-25 13:59:36','<!-- wp:paragraph -->\n<p>A successful equity crowdfunding raise takes work. Have you decided\n<a href=\"https://www.thecrowdfundinglawyers.com/is-equity-crowdfunding-right-for-your-company/\">equity\ncrowdfunding (Reg CF) is right for your company</a>? Great! You have joined a\nrevolution in business capitalization. You will lead your industry. And you\nsome earned media and free marketing is on the way. And, oh yeah, cash! &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3700,\"align\":\"center\",\"width\":475,\"height\":323} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Steve-Harvey-Dancing.gif\" alt=\"\" class=\"wp-image-3700\" width=\"475\" height=\"323\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>But saying yes is only the first step. A long sometimes\ndifficult road awaits. But as an entrepreneur you already know nothing worth\ndoing comes easy. Luckily for you, there are industry professionals (<a href=\"https://www.thecrowdfundinglawyers.com/\">like me!</a>) to guide you\nthrough the process of a successful equity crowdfunding raise.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<p>Here are four keys to a successful equity crowdfunding raise:</p>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>1. Hire a lawyer to help your equity crowdfunding raise succeed &nbsp;</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>Some entrepreneurs don’t like lawyers “in their way” or believe\nthat standardize forms reduce representation needs. Yes, as a lawyer who helps\ncompanies succeed in the equity crowdfunding process, I am biased. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But consider these facts: </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg\nCF</a> regulations are <a href=\"https://www.sec.gov/rules/final/2015/33-9974.pdf\">685 pages</a>. They are\nfull of mind-numbing jargon and securities legalese. (And <a href=\"https://www.thecrowdfundinglawyers.com/shallow-end-jay-treads-water-while-reg-cf-sinks-but-is-help-on-the-way/\">Reg\nCF changes may be coming</a>). Plus, they cover a range of topics not directly\nrelated to the legal documents like solicitation rules, adherence with state\nlaws, year-end reports etc. A competent lawyer will guide you through the\nprocess soup to nuts.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Also, you may need other legal work to prepare your company\nfor a successful equity crowdfunding raise including amending and restating\nyour articles of incorporation, reviewing bylaws, converting legal entities, and\nother compliance issues that always arise. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A lawyer can discuss pros and cons of particular financial\ninstruments, different portals, and recommend CPAs, marketers, and other\nprofessionals you may need. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The bottom line is if you don’t think you need a lawyer for\na potentially million-dollar securities transaction you’re not ready for this\nand may want to consider Kickstarter. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":3701,\"align\":\"center\",\"width\":493,\"height\":370} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Homer-Simpson-GIF.gif\" alt=\"\" class=\"wp-image-3701\" width=\"493\" height=\"370\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>2. Lead Investors jump start a successful equity crowdfund raise</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>One question that arises when explaining the process to\npotential clients is why they need a lead investor. After all, isn’t that what\nthe crowd is for? A lead investor signals the larger investor community you\nhave a serious raise. The worst thing that can happen in a <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">Reg CF</a> equity\ncrowdfund raise is for the issuer to languish weeks without substantial\ninvestment. No marketing, superior product, or brilliant team can overcome a\nlack of initial investment. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Even before that, lead investors provide the big portals\nwith confidence your company is worth hosting. The big portals don’t want for\ncompanies trying to access their investor lists. Lead investors can also ensure\na raise will hit its minimum target giving the portal confidence to place your\ncompany. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Portals also usually have minimum investment triggers before\nthey will promote you to their investor list. If you don’t have that minimum\nguaranteed up front the chances having a successful equity crowdfunding raise\ngreatly drops.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>At the least that minimum should be $25k but you may want to\nhold out for $50k. And remember what the wise man says: The better you are to\nthe crowd, the better the crowd will be to you.&nbsp;\n&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":398,\"align\":\"center\",\"width\":527,\"height\":297} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/05/dwight-2.gif\" alt=\"\" class=\"wp-image-398\" width=\"527\" height=\"297\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>3. Together Everyone Accomplishes More</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>You’ve likely heard the acronym for TEAM since little league.\nAnd as an entrepreneur you’ve chosen your team carefully. These are the people you\ngrind with, who accept the long days and stressful situations. But not all are\nsalesmen, maybe you have technical people, or financial people who don’t\nusually sell your company. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Everyone is part of your raise. That includes your lawyer!\nEveryone has social media, Linked In, Twitter, Minds etc. Everyone should be\nresponsible for bringing in investors. And it’s not just those directly employed.\nYour lead investors, board members, friends, family, acquaintances that believe\nin you are your “ambassadors.” You need them for buzz. They should be on board\nbeforehand and be willing to open their networks to you. (SEC regulations\napply). Keep up with them even after you’re live. After all we’re all salesman\nwhether we like it or not. It’s three months out of your life. Do it. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":980,\"align\":\"center\",\"width\":374,\"height\":370} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/06/do-it.gif\" alt=\"\" class=\"wp-image-980\" width=\"374\" height=\"370\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>4. Commitment to a successful equity crowdfund raise is a commitment to your company and your vision</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>If people told you this would be easy, they lied. You’ll\nhave to manage your company and the raise simultaneously. You’ll have potential\ninvestors asking you questions on message boards, media and marketers\ncontacting you, complaints, concerns, congratulations. You should prepare for\nthis and prioritize what is most important, delegate what you can, and plan how\nto maximize your raise daily and weekly. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A successful equity crowdfund raise signifies that not only\nare you an industry leader but that you can effectively multi-task. And at the\nend you should have a big pile of money, because that’s what it’s all about\nright? </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Of course, you now have investors and the responsibilities\nthat go with that (psst you need a lawyer!). But you will have taken a major\nstep toward achieving what you started the company for in the first place. &nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:tadv/classic-paragraph -->\n<h3 style=\"text-align: center;\"><strong>A good team a great plan and you’re on your way</strong></h3>\n<!-- /wp:tadv/classic-paragraph -->\n\n<!-- wp:paragraph -->\n<p>These are few things you can do to ensure you have a\nsuccessful equity crowdfund <a href=\"https://www.thecrowdfundinglawyers.com/reg-cf/\">(Reg CF</a>) raise. For\nmore insight check out <a href=\"https://startups.co.uk/makes-equity-crowdfunding-successful/\">this\narticle</a>. From the portal perspective <a href=\"https://medium.com/@jonnyprice/regulation-crowdfunding-three-years-in-29766d0b80a2\">see\nhere</a>. Click here evaluate whether your company is right for equity\ncrowdfunding. For other options beyond Reg CF see here about <a href=\"https://www.thecrowdfundinglawyers.com/reg-a/\">Reg A+</a> and <a href=\"https://www.thecrowdfundinglawyers.com/reg-d/\">Reg D</a>. See here for an\noverview of <a href=\"https://www.thecrowdfundinglawyers.com/cfl-landing/\">Jossey\nPLLC equity crowdfunding services</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.thecrowdfundinglawyers.com/cfl-scheduler/\">Schedule a call or\nvideo conference</a>. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>By <a href=\"https://twitter.com/thecrowdfundlaw\">Jossey PLLC</a>\nvia <a href=\"http://www.thecrowdfundinglawyers.com\">www.thecrowdfundinglawyers.com</a>\n</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Disclaimer </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This post is for informational purposes only. It does not\nrepresent a contract, offer, or any legal obligation on the part of Jossey\nPLLC. Many factors go into a successful raise including appeal of the product,\ncompetition for the product, the quality of the marketing, operating history of\nthe company, experience of management, and ability to self-generate crowd\ninvestors. Legal and regulatory compliance is only one part. Investing in small\ncompanies and startups carries lots of risk, there is no guarantee your company\nwill have a successful raise.</p>\n<!-- /wp:paragraph -->','Four Keys to a Successful Equity Crowdfunding Raise (Reg CF)','','publish','open','open','','four-keys-to-a-successful-equity-crowdfunding-raise-reg-cf','','','2019-08-25 14:02:43','2019-08-25 14:02:43','',0,'https://www.thecrowdfundinglawyers.com/?p=3698',0,'post','',0),(3700,1,'2019-08-25 13:44:25','2019-08-25 13:44:25','','Steve Harvey Dancing','','inherit','open','closed','','steve-harvey-dancing','','','2019-08-25 13:44:25','2019-08-25 13:44:25','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Steve-Harvey-Dancing.gif',0,'attachment','image/gif',0),(3701,1,'2019-08-25 13:45:26','2019-08-25 13:45:26','','Homer Simpson GIF','','inherit','open','closed','','homer-simpson-gif','','','2021-06-20 02:28:51','2021-06-20 02:28:51','',7710,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/08/Homer-Simpson-GIF.gif',0,'attachment','image/gif',0),(3724,1,'2019-09-01 16:28:41','2019-09-01 16:28:41','','Wefunder Chart 1','','inherit','open','closed','','wefunder-chart-1','','','2019-09-01 16:29:51','2019-09-01 16:29:51','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/09/Wefunder-Chart-1.png',0,'attachment','image/png',0),(3726,1,'2019-09-01 16:28:58','2019-09-01 16:28:58','','Wefunder Chart 2','','inherit','open','closed','','wefunder-chart-2','','','2019-09-01 16:30:45','2019-09-01 16:30:45','',0,'https://www.thecrowdfundinglawyers.com/wp-content/uploads/2019/09/Wefunder-Chart-2.png',0,'attachment','image/png',0),