Crowdfunding & Alternative Financing

Today's financial and social sectors are converging in unprecedented ways. While these exciting times are presenting new and highly-lucrative opportunities for entrepreneurs and investors alike, the ever-evolving landscape of regulatory law governing these transactions present significant hurdles if not thoroughly understood and strategically traversed. 

Helping Our Clients Succeed

Florek & Counsel's team of skilled and knowledgeable attorneys have positioned themselves at the forefront of the crowdfunding and alternative financing sectors. Our team's continued participation in these rapidly evolving markets allow us to provide our clients with comprehensive legal experience and guidance throughout every stage of the investment and funding cycle.

This area of our practice is predominately focused on providing an extensive range of services for private equity and venture capital investors, issuers (such as start-ups and entrepreneurs), and crowdfunding platforms. Our Counselors advise on the full gamut of financing transactions, including privately negotiated transfers of shares or assets, leveraged buyouts, management buyouts, mergers & acquisitions, recapitalizations, varied equity structures, and crowdfunding compliance requirements for platforms, issuers, and investors.

 

Crowdfunding

Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. This relatively new practice has been gaining tremendous steam and media attention due to its unbelievable growth rates and undeniable market potential.

Title II and Title III of the JOBS Act, which was signed into law by President Obama on April 5, 2012, proposed new rules and regulations that would permit crowdfunding platforms to publicly solicit private equity offerings for investments. These proposed rules and regulations would effectively grant entrepreneurs access to a new and virtually unlimited pool of potential investors.

While the potential for obtaining capital through crowdfunding is tremendous, the proposed rules and regulations set forth by states and the SEC require a detailed knowledge of the compliance requirements for issuers, funding platforms, and investors. Our firm strategically analyzes these regulations to ensure our clients are afforded every opportunity to enter and benefit from this new and exciting financial arena.

(Read more about the current climate of crowdfunding and the proposed compliance regulations of Title II and Title III of the JOBS ACT.)

Private Equity and Venture Capital

Private equity investors continue to demonstrate that, when armed with industry knowledge and skilled representation, it is possible to thrive in today's ever-changing, complex, and highly competitive markets. 

The most successful private equity and venture capital deals are those that are skillfully structured to maximize returns throughout all stages of an investment's life cycle.

 

(read more about the stages of venture capital investments)

Our skilled lawyers have experience representing private equity issuers, investors, and portfolio companies. From identifying and acquiring the correct target, to the final stages of effectuating a successful exit, our team of specialized attorneys tactfully navigate the legal complexities involved in each transaction

At Florek & Counsel, LLC, we understand that every deal must be uniquely structured in order to effectively address each clients' individual investment objectives. We proudly provide market-leading intelligence covering all aspects of the private equity and venture capital sector, and offer innovative solutions to ensure that our clients' needs and goals are addressed throughout every step of each transaction.  

To learn more about crowdfunding regulations, alternative financing options, or how our counselors can help you with your next deal, contact our team at Info@FlorekCounsel.com


News & Recent Developments

 

Crowdfunding: States Leading the Charge

June 19, 2014

Entrepreneurs and investors have long realized the potential of equity crowdfunding to unlock hundreds of millions of dollars in capital. However, they are not the only ones growing increasingly  restless while awaiting the SEC's  long over-due rules and regs. This market potential has also caught the attention of state level policy-makers,who, unlike private investors and entrepreneurs, can do more than sit idly by and wait for SEC action.

Since 2011, eleven states, including KS, GA, ID, WI, MI, ME, MD, IN, TN, AL, and WA, have passed legislation permitting and regulating the practice of intrastate equity crowdfunding. This process seems to be quickly turning into a trend, as a slew of additional states follow closely behind with their own proposed laws permitting the practice.

States with currently pending legislation, which would also permit the practice of intrastate equiy crowdfunding, include CT, PA, VA, NC, SC, FL, MI, MS, MN, NM, UT, AK, and CA.

 

 

*While the articles and information on these pages aim to provide an accurate, objective and up-to-date portrayal and review of the facts concerning various disciplines within today's legal profession, the information contained within these articles is intended for informational purposes only and should not be construed as legal advice. No reader should act on the basis of the content without seeking appropriate legal counsel.*