Drea Schmidt and Claire Brown, members of Tonkon Torp’s Entrepreneurial Services practice group, gave a presentation on intrastate crowdfunding at an Oregon State Bar Securities Regulation Section event on September 17, 2014.
Crowdfunding is a relatively new term for raising capital for a company or a business idea by obtaining funds from a wide group of people, usually using the internet. Because crowdfunding offerings often involve the sale of securities, it is important to know the rules in order to avoid running afoul of securities laws.
Entrepreneurs and small business owners have been eagerly awaiting issuance of final SEC rules allowing equity crowdfunding. Prompted in part by delays in these federal rules, many states have passed their own rules allowing crowdfunding offerings conducted only in that state to take place. Oregon has not enacted state crowdfunding rules, but is considering doing so. Drea and Claire's presentation focused on enacted and proposed legislation in other states, which may indicate the type of state crowdfunding rules that will eventually become effective in Oregon.
Tonkon Torp’s Entrepreneurial Services attorneys help entrepreneurs lay a financial and structural foundation for success, providing advice on issues ranging from entity formation and governance to capital raising, intellectual property protection, tax and regulatory compliance. Drea’s practice emphasizes securities, corporate governance and general corporate matters. She has experience in equity financing, advising on state and federal securities laws and SEC reporting and disclosure matters. Claire counsels small business and startup clients on various business and fundraising matters, drawing on her experience in finance.