“Crowdfunding” has become increasingly popular as a capital-raising mechanism for artists, film-makers, and small businesses, in which financial contributions are made in exchange for a tangible item of value, such as tickets to a performance. In April 2012, as part of the JOBS (“Jumpstart Our Business Startups”) Act, the SEC was directed to implement rules allowing “equity crowdfunding,” in which small businesses would be allowed to raise needed capital in exchange for shares or other ownership interests. Three years on, despite great expectations, the SEC’s rules on this topic have been proposed, but are not yet final. Some states, including Massachusetts, have taken matters into their own hands and adopted rules allowing intrastate equity crowdfunding, in which small amounts can be raised through offerings only to residents of one state.

At this session, you will learn what the SEC’s rules will ultimately permit small businesses to do, what the state rules allow, and other potential means for financing startup businesses.