In late April, the Texas Securities Board issued proposed regulations that would allow crowdfunding in intrastate transactions in Texas.  The word on the street is that the proposed regulations will become final in August 2014.  If they do, Texas will become the 8th  and the largest state to enact intrastate crowdfunding.

Under the proposed

The Adam Carolla Show was sued last year in the Eastern District of Texas by a company claiming that Carolla’s podcasts violate their patent.  Rather than bend over and settle out of court with the claimant, Adam Carolla has taken a stance against the so-called patent troll.

Earlier this year, Julie Samuels made an appearance

The WinTech blog previously covered a patent infringement lawsuit filed against the “Adam Carolla Show” from ACE Broadcasting Network, LLC.[1]  The plaintiff, Personal Audio, LLC, alleges that the “Adam Carolla Show” is infringing on their patent for a “[s]ystem for disseminating media content representing episodes in a serialized sequence.”[2]  The patent could also

        On October 23, 2013, the United States Securities and Exchange Commission (the “SEC”) is expected to vote on a SEC proposal that would ease investor verification requirements under the crowdfunding rule. The crowdfunding rule, authorized as part of the 2012 Jumpstart Our Business Startups Act, is intended to benefit small businesses and startups too small

Crowdfunding” is one of the most recent concepts in obtaining funding for private companies.  Prior to the enactment of the Jumpstart Our Business Startups Act (called the JOBS Act), private companies were not allowed to solicit investments from prospective investors unless they had a “substantial preexisting relationship” with the investor or registered the offering with the SEC. The JOBS Act allows companies to sell securities to a large number of investors, whether or not the company knows the investors prior to the sale. However, until the SEC issues guidance on how the crowdfunding offerings have to be conducted, crowdfunding will not be available as a means of financing your company except in limited contexts.

What is crowdfunding? Crowdfunding is intended to allow private companies to cast a very wide net when seeking investors. It has been conducted on a limited basis for some time but it has typically been structured in a manner that allows the company raising funds to fall outside of securities regulations. Kickstarter ( is a website sometimes used to fund creative projects such as films and video games, usually as a donation, and one filmmaker recently raised $5.7 million on Kickstarter with contributors receiving benefits ranging from updates on the movie for a $1 contribution to a speaking role in the movie for a $10,000 contribution.  It may also facilitate pre-sales of products by offering customer rewards. Crowdfunding has also been used to provide micro-loans through companies like Kiva ( Typically the loans are interest free and Kiva doesn’t take a commission. Since no profit is involved, Kiva takes the position that these loans are not “securities.” Something akin to crowdfunding is also being used with solicitations for investments given to people with whom there is already a “substantial pre-existing relationship” and who meet the “accredited investor” criteria.  However, as a general rule, crowdfunding has not been available as a source of capital for start-up companies.
Continue Reading Crowdfunding – Funding for Private Companies