By Catherine Austin Fitts
Complex legal and regulatory requirements govern access to raising private equity capital in the United States.
This means an entrepreneur looking to finance a start up or early stage business has to wade through a complex laws and regulations to sell stock or structure and issue stock options. One of the first questions is, “How can I sell stock without having to register an offering with the Securities and Exchange Commission (SEC) ?”
I count five such “exempted” pathways open to US entrepreneurs and small business owners. I asked attorney Carolyn Betts to describe them in this Special Solari Report. The SEC is expected to promulgate new regulations this winter for the use of crowdfunding to raise capital with exempted securities . That will be the sixth pathway? Will it make things easier? We will have to wait and see.
This week on the Solari Report, I have prepared a briefing for you on crowdfunding – what it is, what it will mean to the global economy and what it means to you. As part of this offering, I thought it would help our subscribers to have an overview of all six pathways.
If you are an investor, this will help you with due diligence and to ensure that the companies you are investing in meet regulatory standards.
If you are an entrepreneur, this will help you and your attorney determine the optimal pathways for you.
If you don’t fit into either category, it will help you understand why in America it is easy as pie to lose money on the lottery or to buy cocaine without questions asked but near impossible to buy stock in your neighborhood farm or grocery store, let alone to have a stock exchange or venture fund for your community.
Related Reading:
Special Solari Report: Jump Start Our Business Startups (JOBS) Act of 2012