Crowdfunding is the practice of raising monetary contributions for a business or venture from a large number of investors via the internet.
Since 2010, crowdfunding has experienced explosive growth with estimates indicating it is now a $5 billion industry. Platforms like Kickstarter and Indiegogo permeate the financial news and are gaining investor acceptance—offering developers and owners a new way to finance projects and start-up entrepreneurs an inexpensive way to raise capital.
Due to its rapidly evolving nature, crowdfunding raises many legal questions and challenges. M&R’s Corporate & Securities, Commercial Litigation and Real Estate Departments have an interdisciplinary Crowdfunding Practice, making us distinctively qualified to advise on issues relating to company and fund formation, entity and deal structuring, private and public financing, compliance under the JOBS Act, the Federal Securities Acts, state “blue sky” laws, state consumer laws, and M&A transactions.
The collective experience of our attorneys uniquely positions M&R to counsel investors, entrepreneurs, developers and operators with respect to the crowdfunding industry. We work with clients at every stage of the process, to assist emerging entrepreneurs and companies in obtaining equity and debt financing for their businesses and projects.