crowdfunding red flags

Crowdfund or Crowdfraud? Five Red Flags

Recently there has been a major boom in crowdfunding across the internet, both for causes and for products. Kickstarter, for example, is a site where anyone can “invest” on a product that is being developed, which usually results in that person receiving the product at a discount once it is fully funded and produced. GoFundMe… READ MORE

Privacy policies for crowdfunding portals

Crowdfunding portals require strong terms of use and privacy policy agreements to protect their business interests. The public is generally aware of the role data collection plays in society and most particularly online. Users are now aware that they are being tracked and that certain data is being collected about them. We believe websites that… READ MORE

Crowdfunding and Control of Investors

  The Michigan Invests Locally Exemption (MILE), gives Michigan businesses and investors an opportunity not available on the federal level: the ability to raise capital by selling equity online. This democratization of funding can cause a fundamental shift in how businesses raise money. But, as with any type of investment, taking other people’s money brings… READ MORE

Equity Crowdfunding in Michigan: The Bad Actor Rule

Michigan’s equity crowdfunding law, technically referred to as the “Michigan Invests Locally Exemption,” represents a fundamental shift in how businesses can raise capital. The power of turning to the crowd, instead of banks, is an opportunity Michigan businesses have never possessed before.   But, equity crowdfunding in Michigan comes with a number of regulations. One… READ MORE

Michigan Equity Crowdfunding: Regulations on Using Websites to Sell Equity

While Michigan has democratized raising capital with its passage of the “Michigan Invests Locally Exemption,” it has also placed some, lets say interesting, regulations on the websites that act as a portal or third-party between the issuing company and the investor. If you are considering using Michigan’s crowdfunding process, explained in general here, you should… READ MORE

Equity Crowdfunding in Michigan: The Disclosure Statement

While businesses and investors are waiting for the SEC to finalize rules to implement equity crowdfunding on a national scale, Michigan businesses and residents can begin utilizing this innovative method of raising money today.   The “Michigan Invests Locally Exemption” now permits Michigan businesses and citizens to use the power of the Michigan-crowd to offer,… READ MORE

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