Crowdfunding & Fintech

Lex Nova Law features one of the most active and prominent Crowdfunding and Fintech practices in the country. We represent Crowdfunding portals, issuers (companies raising capital), investment advisers, consultants, and other industry participants in every facet of this rapidly-growing space.

Leaders in the space since the JOBS Act was signed in 2012, we are committed to expanding economic opportunities for America entrepreneurs and democratizing capital for American investors.

It’s Just the Internet

Over the last 25 years the internet has played an ever-more important role in our lives. In one industry after another – the retail industry, the hospitality industry, the automobile industry, etc. – the internet connects buyers with sellers directly, drives down costs, and increases efficiencies.

The American capital markets are a multi-trillion dollar industry where the sellers are entrepreneurs and the buyers are investors. Just as Amazon allows a shoe manufacturer to reach every potential shoe buyer in the world, so Crowdfunding allows entrepreneurs to connect with every investor in the world. The potential is unlimited.

Representing Portals

We represent:

  • Title III Portals (funding portals offering securities under section 4(a)(6) of the Securities Act). We will take you through the SEC and FINRA application process, soup to nuts.
  • Title II Portals (portals using general solicitation and advertising under SEC Rule 506(c)).
  • Rule 506(b) Portals (portals offering securities as traditional private placements).
  • Title IV Portals (portals offering securities under Regulation A).
  • Among other services, we provide form offering documents for portals, allowing the portal to make offerings faster, less expensive, and more transparent for issuers and investors.

Representing Issuers

We represent companies seeking to raise capital in every type of Crowdfunding offering:

  • Rule 506(b) (Traditional Private Placements)
  • Rule 506(c) (Title II Crowdfunding)
  • Section 4(a)(6) of the Securities Act (Title III Crowdfunding or Regulation CF)
  • ICOs (Initial Coin Offerings)
  • Regulation A (Title IV Crowdfunding)

In our representation of issuers, we:

  • Design Tax-Effective Structures for Businesses
  • Form Qualified Opportunity Funds
  • Take Advantage of State Laws to Protect Entrepreneurs from Liability
  • Develop Complex Distribution Waterfalls
  • Prepare SEC Filings and Reports Post-Offering

Blockchain and Cryptocurrency

We were among the earliest to recognize the promise of blockchain technology and among the first to warn about over-the-top promises made during the early days.

Among the areas where we advise token issuers and investors around:

  • Whether Tokens are Securities
  • Airdrops
  • Application of the Investment Company Act of 1940
  • Token Exchanges
  • Use of Tokens as Payment for Crowdfunding Offerings