On January 15, 2015, the Massachusetts Securities Division adopted new regulations which permit “crowdfunding” securities offerings by some Massachusetts companies to Massachusetts residents. According to the Merriam-Webster definition, crowdfunding is “the practice of soliciting financial contributions from a large number of people especially from the online community.” The worldwide phenomenon has gained traction for a number of reasons. Among those include the expansive use of the Internet, the opportunity to heighten awareness for marketing purposes, and the ability of entrepreneurs and more established business owners to find alternative means of raising capital, aside from traditional avenues like a bank lending or individual investors. However, there are particular eligibility criteria, dollar limitations, disclosure requirements and other conditions to be aware of before launching a crowdfunding campaign.
PLDO partner and veteran business attorney, William F. Miller, explains the new regulations and conditions in his latest advisory, Massachusetts Adopts Limited Crowdfunding Exemption. If you have questions or would like to speak to Attorney Miller about this issue or another business matter, email him at [email protected] or call 866-353-3310. We welcome your comments, questions and suggestions.
Source: Massachusetts Adopts Limited Crowdfunding Exemption