Tag: crowdfunding
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
Terms of Use Agreements for Crowdfunding Portals
The rise of the sharing economy and websites like Kickstarter, Indiegogo, and GoFundMe have led to the expansion of crowdfunding portals across the internet. Oftentimes, these businesses are centered around a niche area or serve to advance a social cause. Even if these businesses are serving altruistic goals, many times the entities are for-profit… READ MORE
SEC Rule 147 and the Michigan Invests Locally Exemption
Michigan Invests Locally Exemption We have written repeatedly on Michigan’s new crowdfunding regulations established as the Michigan Invests Locally Exemption (“MILE”). Whether you like them or not, the MILE regulations take aim at striking a balance between permitting new avenues of equity-driven fundraising, while seeking to protect its participants from unscrupulous offerors. MILE only applies,… 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
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
Terms of Service Agreements for Crowdfunding Platforms
Terms of Service (“TOS”), sometimes referred to as terms of use agreements, are the ubiquitous footer link that typically contains a large block of text, often ignored by users (and sometimes website operators). However, the importance of these agreements should not be overlooked for any website. And terms of service agreements for crowdfunding platforms should… READ MORE
Equity Crowdfunding in Michigan
The concept of crowdfunding business ventures has become commonplace in our society through the growth of sites like kickstarter.com, indiegogo.com, or fundanything.com. While these sites serve a valuable purpose, to help people or companies raise money for certain projects, the individuals giving money are essentially donating to the idea (not counting the perks that go… READ MORE