To the delight of both issuers and investors, the SEC continues to make crowdfunding better as they have announced major changes to their crowdfunding rules. In this podcast, crowdfunding attorney Mark Roderick and Co-Founder of Lex Nova Law goes over what he believes are the most important and impactful changes including raising the limits for Regulation A and Regulation CF deals as well as the ability of “finders” to legally accept commissions for bringing deals to the table. And perhaps most importantly, the changes regarding accredited and non-accredited investors are a complete game changer! In this podcast, you’ll find out why that is.
We can’t elect a President, but there’s certainly a preponderance of positive energy being circulated in the crowdfunding industry with respect to these rules revisions from the SEC! By increasing the raise limit of Reg.A and Reg.CF offerings, the entire process has become much more realistic in terms of making everything successful on just about every level and aspect of the industry. Now, accredited investors can have whatever stake of a project they want, and non-accredited investors can participate in ways unimaginable just a short time ago. And what’s an accredited investor? That rule has changed too!
One of the biggest changes the SEC has implemented is the legality of “finders” receiving commissions or payments for brokering deals and introducing investors to issuers, syndicators, developers, etc. Before this change, only broker-dealers were allowed to receive compensation for such deals. With the new changes, these finders can now legally receive these commissions and other transaction-based compensation from issuers. The ability to legally monetize your connections is something many have been waiting for for quite a long time!
There’s no question that crowdfunding still has its growing pains. However, one thing’s for sure: finders, investors, and issuers alike should all be jumping for joy after listening to the information Mr. Roderick goes over in this podcast. Broker-dealers, maybe not… But regardless, it’s a new world for crowdfunding and doors continue to open. The industry is definitely heading in the right direction.
To learn more about how Lex Nova Law can help you raise money for your crowdfunding deal or if you have any questions about the show’s topic, visit Mr. Roderick’s Lex Nova Law website, read his Crowdfunding and Fintech blog, or just google Mark Roderick for more information.
ABOUT OUR GUEST: Mark Roderick
Mark Roderick is a very “boring” corporate and securities lawyer at Lex Nova Law with locations in Cherry Hill, NJ and Philadelphia, PA. Since the JOBS Act of 2012, he has spent all of his time in the Crowdfunding space and today is one of the leading Crowdfunding and Fintech lawyers in the United States.
He writes this widely read blog which provides readers with a wealth of legal and practical information for portals and issuers. He also speaks at Crowdfunding events across the country, and represents industry participants across the country and around the world. He can be reached by email or at 856.661.2265.
All information provided is for informational purposes only. Mapable USA is not a registered broker-dealer, funding portal, or investment advisor. This information presented on this website/podcast is not intended as legal or investment advice for anyone to make an investment in any particular company and is not intended for any companies to rely on this information to form an opinion to go public or not to go public or to do any type of offering of securities. Any information presented is not an offer or solicitation to purchase or sell any securities or financial products. None of the information on the Mapable USA podcast or website takes into account any individual person’s personal objectives, financial situation, needs, or particular circumstances. You must check with a securities attorney to find out if an offering is for you, or if you are going to be in the business of selling any type of securities, you need to make sure you are following your state and federal legislative law so you do not get into any troubles. Do not use the opinions as stated on this show as any way to form an opinion as what is wrong or right or what could be done for your business or as an investor. Mapable, LLC recommends you obtain your own financial, legal, and taxation advice before making any financial investment decision.