On May 16, 2016, new “crowdfunding” rules took effect that promise to change the way startups are funded. Unlike “rewards-based” crowdfunding through sites like Kickstarter and Indiegogo, the new “securities-based” crowdfunding allows entrepreneurs to raise capital by selling an ownership interest in their company to anyone online. But while the new rules may be a boon to many startups, securities-based crowdfunding isn’t for everyone. In this program, Ben Hron of McCarter & English and angel investor Ben Littauer will talk about how securities-based crowdfunding works and what we’ve learned since the new rules took effect.
Ben Littauer (http://littauer.blkk.com/capsule_bio.html) is an angel investor with expertise in Internet and communications technologies, as well as healthcare IT. Ben is currently an active member of Boston Harbor Angels and Walnut Venture Associates, and a mentor for Mass Challenge and The Capital Network. Ben was co-founder, President, and CTO of Baranof Software, the leading vendor of service-level management software for messaging and Internet applications, which was sold to Tally Systems in 1997. He has also worked for Cisco Systems, Sun Microsystems, Symantec, Lotus, BBN, Ferris Research, Baroudi Bloor International and Beth Israel Deaconess Medical Center in Boston, where he defined the architecture for PatientSite, which allows patients to communicate securely with their healthcare team and view their own medical records.
Ben Hron (http://www.mccarter.com/Benjamin-M-Hron/) is a member of the Venture Capital and Emerging Growth Companies practice of McCarter & English, LLP, where he concentrates his practice on advising private companies, most in the life sciences and information technology industries, on general corporate matters, angel and venture capital financing, mergers and acquisitions, securities law compliance and strategic collaborations. He also represents investors in connection with the financing of private companies. Ben has extensive experience working with entrepreneurs and emerging companies, often getting involved when a business is still in its infancy and helping guide the founders through the formative early stages of their company’s development. Ben also chairs the McCarter & English seminar series for entrepreneurs at the Cambridge Innovation Center.