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“Crowdfunding: A New Federal and State Form of Securities Offering”

State Bar of Wisconsin, Inside Track By Mitchell Lindstrom, co-author

Below is an excerpt:

Purchasing an interest in small businesses just became a little easier as private, unregistered securities offerings can now be conducted through one of society’s most powerful exchanges: the Internet.

The Securities and Exchange Commission (SEC) rules on equity crowdfunding were promulgated in 2015, and became effective on May 16, 2016, opening the door to a new federal form of unregistered securities offering. The federal scheme supplements the state-based equity crowdfunding scheme that Wisconsin adopted in 2014.