Emerging Companies + Venture Capital

On October 30, 2015, the Securities and Exchange Commission adopted final rules to implement an exemption under the federal securities laws for equity crowdfunding transactions.  As a result, start-ups and other emerging companies will be able to raise up to $1 million per 12-month period by selling their securities to all types of investors in small increments through on-line platforms maintained by broker-dealers and funding portals.

Counsel Michael T. Campoli, a member of Pryor Cashman’s Corporate Group, has authored a Legal Update summarizing the final rules.

To read the update, entitled "Final Equity Crowdfunding Rules Adopted by the SEC to Promote Capital Raising by Emerging Companies," please click here.