August 2, 2012 – Prepare for a Capital Raise: Crowdfunding, Douglas J. Gorman

Speaker:
Douglas J. Gorman, a New York and Delaware business attorney

Description:
Douglas J. Gorman, specializes in corporate matters, emerging business, venture capital and commercial law will present an overview on what equity crowdfunding is, what it is not, and how it fits into the current securities laws. Business owners considering equity crowdfunding will also learn its risks, how they balance with the potential rewards and how to mitigate them.

PowerPoint:
“Prepare for a Capital Raise: Crowdfunding”

Location:
Binghamton University

Present:
Speaker - Douglas Gorman (Hancock Estabrook, LLP)
Attendees - Scott Bowen (Binghamton University), Cassandra Carter (Dabar LLC), Kerry Cook (YWCA of Binghamton), Peter Cronk (S.T.O.C.), Brian Cupp (NuWaka), David Currie (Binghamton Regional Sustainability Coalition), Stacey Duncan (Greater Binghamton Chamber of Commerce), Heather Filiberto (TCAD), Donna Fish (Independent Consultant), Jon Frisbie (The Bagel Factory), Rick Frisbie (Randa Corporation), Scott Hancock (Binghamton University), John Hayek (Southern Tier Opportunity Coalition), Alex Hantman (SUNY Binghamton), Merry Harris (BLDC), Janet Herzog, (Broome Community College), Kenneth Homer (Binghamton SBDC), Joanne Jones (Binghamton University), Thomas Kowalik (Binghamton University),  Rochelle Layman (NYS Small Business Development Center), Kenneth McLeod (Bioengineering), Alex Rackeya (Hinman, Howard & Kattell), Wayne Richardson (Papa Bears Outdoors), Per Stromhaug  (Binghamton University), Lucy Volland (Binghamton University), Lea Webb (City of Binghamton)

Reports/Discussions 

  • T. Kowalik welcomed members, participants and provided a brief overview of SUNY BEST. He reminded everyone that this session was being recorded and a link to the recording would be placed on the SUNY BEST website soon.
  • Attendees introduced themselves.
  • Douglas J. Gorman is a New York and Delaware business attorney specializing in corporate matters, emerging business, venture capital and commercial law. He represents businesses, large and small, on a wide range of matters including start-up and choice of entity issues, domestic and international commercial contracting, private finance, shareholder relations and disputes, corporate governance and corporate transactions of all types.
  • The term “crowdfunding” has, in recent months, made headlines and resulted in pre-sale, gift and debt financing of countless projects and causes internationally.  In January 2013, under the new JOBS Act, a new type of crowdfunding will arise: equity crowdfunding, which up until this point has been illegal under federal and state securities laws. Title III of the JOBS Act or Crowdfund Act (handout) will be the first SEC exemption to recognize the potential power of the internet in promoting economic growth, and will allow small businesses and entrepreneurs to raise equity capital in their businesses via general internet solicitations.  Equity crowdfunding is an unprecedented opportunity for small businesses. It has enormous potential upsides in unlocking vast capital resources and leveling the playing field for small businesses with no access to well-capitalized investors.  However, equity crowdfunding is not without its risks, and it certainly is not for everyone.

Recording:
Douglas J. Gorman, Prepare for a Capital Raise: Crowdfunding, . Recording, 02 Aug. 2012 (Run time: 01:32:02)

Next Meeting:
The next meeting is Thursday September 6, 2012 from 10:00am – 12:00pm, (Location TBA)