The Securities and Exchange Commission has issued rules to allow securities-based crowdfunding, transforming the practice from a trendy buzzword to a mainstream fundraising model. Our Crowdfunding Initiative brings together attorneys experienced in securities, private equity, business and finance, real estate, and corporate law to help investors take advantage of this emerging opportunity.
Through crowdfunding, large numbers of people pool their money over the Internet to fund projects—from supporting a political campaign to starting a company. The online sale of securities through crowdfunding was signed into law as part of the federal JOBS Act. With this legislation, crowdfunding platforms, particularly those involving real estate investments, have grown increasingly popular.
Crowdfunding Internet portals provide an online marketplace where accredited investors can browse equity investments and real estate loans, pool money online, and buy shares of pre-screened real estate investments. Lawyers in our Crowdfunding Initiative represent several of those new investment platforms, which take advantage of the new private placement exemption to allow the online offering of real estate investments to investors.
We advise real estate developers, lenders, builders, and sponsors on:
- Creating online real estate fundraising platforms
- Achieving accredited investor screening
- Structuring private offerings for real estate projects
- Documenting securities disclosure documents and corporate agreements in compliance with securities laws
- Ensuring federal and state securities law compliance
Ballard Spahr lawyers have been involved with crowdfunding laws since their inception, and many of these attorneys are recognized as thought leaders in this area. Members of the team have participated in webinars and have been invited to speak at national conferences and events on crowdfunding. Our crowdfunding clients include funding portals, broker-dealers, technology solution providers, software developers, investors, and entrepreneurs.