It’s almost a truism to note that money seeks opportunity.

And that is certainly the case regarding start-up business enterprises across Southern California that are grounded in sound ideas and a smart plan for future success. Investors are understandably — and always — on the lookout for such vehicles, knowing that money sunk into solid businesses is, well, just good business.

Small-business owners and entrepreneurs understandably need cash infusions to implement their ideas and gain market traction. Business financing is almost always vitally important for any new company.

That symbiotic and reciprocal tug associated with business financing (capital needs to be applied to grow, and businesses need funding to prosper) has brought high numbers of relatively unsophisticated investors into the business world. Such investors have long been under the protective arm of federal securities regulators, with the SEC having established equity financing rules to safeguard them against business scams.

The SEC recently announced a number of new rules in a financing realm termed “equity crowdfunding,” which is the simple practice of buying a percentage of a business entity for cash. Those rules loosen prior restrictions on investments from unaccredited individuals and groups, the goal being to allow greater infusions of cash made available to start-ups looking for financing.

Although some voices laud the changes (read crowdfunding platforms) not every knowledgeable person thinks that the new rules are flatly salutary.

In fact, one of the SEC commissioners who participated in the vote that ushered in the rules (he voted against adoption) cites several material concerns for business owners seeking capital. Commissioner Michael S. Piwowar contends that relaxed provisions for equity crowdfunding to finance small businesses will be inimical to the best interests of many start-up enterprises. The rules are overly complex, says Piwowar, and replete with “burdens [that] will spook many small businesses from pursuing crowdfunding as a viable path to raising capital.”

Of course, crowdfunding is just one financing option among many potential choices vying for a business owner’s attention. An established business law firm with a deep well of financing experience can help a client identify viable financing options and smartly pursue them.

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We received a letter from an attorney representing an ex employee from years ago. This letter couldn’t have come at a worse time for our family. Although the ex-employee had no substance in their case and this was mostly a nuisance, we felt very vulnerable and unprepared. I reached out to a few lawyers for a quote and their retainer fees alone were deal breakers. When I reached Thomas Gallagher, he approached my case from a completely different angle and walked me through the many small steps we would take to get through this issue. Within the first conversation I felt like I had a plan of attack, an attorney I could trust, and that our family was protected. Our case ended up never going to court. In fact, Thomas was able to resolve the entire issue within a week. I am extremely happy with the results from this potential lawsuit, but even happier knowing my family and business is now protected by a lawyer than can get the job done.


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