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Event Detail

JOBS Act Impact and Crowdfunding Platforms @ 1871 (Ended)

Date, Time, and Location:
Tuesday, January 22, 2013 (add this event to your Outlook Calendar)
5:30 pm
Venue 1871, Merchandise Mart Plaza, 12th Floor Chicago, IL  60654   (Driving Directions)

Date, Time, and Location:
Tues., Jan 22, 2013
5:30 - 7:30pm
1871 -- 222 Merchandise Mart Plaza, Ste. 1212, Chicago, IL

Panelists:
NEW - Matthew Brown, J.D., Partner at Katten Muchin Rosenman LLP, concentration in mergers and acquisitions, securities, compliance, and venture capital areas.
Barbara Rozgonyi, Founder of CoryWest Media, LLC, Founder and President of Social Media Club Chicago, and publisher and host of Wired PR Works. These entities all focus on teaching and enabling clients to become better communicators as they grow their small businesses.
Ruth Wagner, Vice President and Stakeholder of CMP.LY, a social media disclosure, risk mitigation, and marketing optimization firm that works with financial services firms to comply with FINRA and SEC advertising restrictions and regulations.

Moderator:
Kerry Jordan, CFA, Director of Marketing for Chicago Capital Management L.P.

Program Description:
The Jumpstart Our Business Startups Act, or JOBS Act, signed by President Obama in 2012, will dramatically change the nature of early-stage funding, public market capital raising, and advertising for firms engaged in selling privately placed assets.

The JOBS Act will enable entrepreneurs to sell up to $1 million worth of equity to the general public through accredited crowdfunding platforms. This early-stage money is essential to entrepreneurs such as those currently working at 1871.

What is 1871?
1871 is a co-working center for digital startups. Located in the famed Merchandise Mart, the 50,000-square-foot facility provides Chicago startups with affordable workspace and access to mentors, programming, educational resources, potential investors and a community of like-minded entrepreneurs.

Fee:
Members - $45
Non-Members - $55
Student-Members - $20
(payable by cash, check, credit card or function ticket)*

Attire: Business Casual

Menu: Refreshments and light appetizers

Registration:
Register online below.

Agenda:
5:30-6pm Registration and Networking
6pm-7:30pm Panel discussion/Q&A/Informal networking

Hosted by: CFA Women Advisory Group

JOBS Act Background

The Jumpstart Our Business Startups Act, or JOBS Act, signed by President Obama earlier in 2012, will dramatically change the nature of early-stage funding, public market capital raising, and advertising for firms engaged in selling privately placed assets. Under the new legislation, the typically small round of capital that is below the regulatory radar for most startups has been expanded to $1 million annually, with similarly limited oversight from the Securities and Exchange Commission. This early-stage money is essential to entrepreneurs such as those currently working at 1871. The JOBS Act will enable entrepreneurs to sell up to $1 million worth of equity to the general public through accredited crowdfunding platforms. The legislation expands the number of prospective investors in the funding pool. The long-term viability of crowdfunding will be contingent upon the ability to link these two parties and manage the investment process. Many experts are skeptical as to whether proper auditing, reporting and legal diligence can be accomplished in companies that are by definition completely broke, but the crowdfunding sites are laser-focused on providing that level of disclosure and transparency to the masses. Traditional early-stage funding mechanisms will now have some competition. That's good for entrepreneurs. Equity crowdfunding has essentially created a new era, that of the recreational venture capitalist. The JOBS Act also will mean lighter-touch regulation for relatively small companies that want to go public. The idea is that they shouldn't be held to the same bar initially as established public companies like Apple or Google, because their costs of complying are, proportionally, a much bigger burden. Among other provisions, the JOBS Act gives so-called emerging growth companies up to five years to fully comply with all the accounting rules required of public companies today.

"Emerging growth companies" must have:

  • less than $1 billion in annual revenue
  • gone public not more than five years ago
  • issued no more than $1 billion in debt
  • floated no more than $700 million in stock

Under the JOBS Act, "emerging growth companies" would have to report only two years of audited financial statements when they file to go public (existing law requires three now, and five years of some financial information, according to this analysis). And banks underwriting their IPOs may be able to issue research reports on the stocks ahead of the offerings, a practice prohibited a decade ago. For up to five years, companies that meet the new criteria will be exempt from certain disclosures dealing with executive compensation. They won't have to have an auditor attest to their internal financial controls, a Sarbanes-Oxley rule put in place after the Enron-era accounting scandals. The JOBS Act also has directed the SEC to remove the prohibitions on general solicitation or general advertising for securities offerings relying on Rule 506. By requiring the SEC to remove these restrictions, Congress sought to make it easier for companies to inform the public that they are seeking to raise capital through the sale of securities. In particular, Section 201(a)(1) of the JOBS Act directs the SEC to amend Rule 506 to permit general solicitation or general advertising provided that all purchasers of the securities are accredited investors. This is of particular importance to private hedge funds and private equity funds.

Panelists:
Matthew Brown Matthew Brown, J.D. is a partner in the Corporate Practice of Katten Muchin Rosenman LLP, and founder and head of the firm's Entrepreneurial Ventures practice group. He has a broad corporate law practice and concentrates in mergers and acquisitions, venture capital, securities, governance and compliance areas representing major corporations, entrepreneurs, and investors. He has extensive experience in counseling public and private companies in all aspects of their formation and operations, financings and securities offerings, mergers and acquisitions, compliance and governance matters. His clients range from start-ups and family owned businesses to public multinational firms, and have included some of Chicago's leading entrepreneurs. He has closed billions of dollars of transactions for clients in varied businesses including enterprise software, internet commerce platforms, air to ground telephone service, big box retailers, industrial chemical distribution, high speed printer manufacturing, IT services, major sports franchises, scrap yards, metal roll coating, food manufacturing, and automated facilities maintenance services management. Brown was appointed by Mayor Richard Daley to serve on the Mayor's Council of Technology Advisors and served for two years as co-chairman of the Access To Capital Working Group. He has served on the Board of Directors of the Chicagoland Entrepreneurial Center since its inception, and is on the Board of Directors of the Les Turner ALS Foundation.

Barbara Rozgonyi Barbara Rozgonyi, a digital pioneer forging new frontiers for over two decades, she leads CoryWest Media, a strategic marketing consultancy that creates business for business and motivates accelerated action in organizations of all shapes and sizes. As publisher of www.wiredPRworks.com, ranked in the top 50 marketing and PR blogs in 2012 by Cision, Rozgonyi reports on ways to grow business, build brands, and connect communities. The founder of Chicago's Social Media Club chapter, Rozgonyi is a motivating keynote speaker, an accomplished corporate trainer, and a passionate educator. A recognized social media, marketing and PR thought leader, Rozgonyi’s media mentions include inc.com, Germany’s FAZ, SOHO magazine, Chicago Tribune, American Express OpenForum, The Business Ledger, WIND, WDCB, ChicagonistaLIVE!, NFIB.com, lowesforpros.com, lawmarketing.com and NBC5. An author, Rozgonyi contributed the LinkedIn chapter to “Success Secrets of the Social Media Marketing Superstars,” published by Entrepreneur Press. Named one of the top 12 PR twitter experts by prweb.com, Rozgonyi's digital brand is @wiredprworks, which also the name of her iPhone app. The mother of three, Rozgonyi enjoys curating life through a lens. Her photography may be viewed at http://thesociallens.com and on Instagram as barbararozgonyi.

Ruth Wagner Ruth Wagner is a dynamic and respected experienced professional who has focused her career in recent years on start up ventures dealing with emerging platforms of technology and social media. Since October of 2009, Wagner has been Vice President and Shareholder of CMP.LY, which helps brands and agencies fulfill regulatory obligations while improving the effectiveness of their marketing and corporate communications programs. The company provides purpose-built disclosure and compliance solutions for contests, promotions, brand advocate programs, investor relations, financial services, affiliate marketing, healthcare marketing and employee social media to clearly communicate required disclosures across platforms such as: Facebook, Twitter, Pinterest, LinkedIn, Google+, blogs, Instagram and other digital media channels. CMP.LY addresses social media disclosure and compliance requirements across various regulatory agencies, including FTC, SEC, FINRA, FDA, OFT, and ASA. Other start-ups in which Wagner has played a key developmental role include America On-Line and XM Satellite Radio. Wagner holds a degree in marketing from the University of Wisconsin- Madison and lives in Chicago.



MODERATOR:
Kerry Jordan Kerry Jordan, CFA is the Director of Marketing for Chicago Capital Management L.P., an absolute return, merger arbitrage strategy hedge fund. Prior to joining CCM, Jordan was a managing director at Phalanx Capital Management, LLC, an Asian-focused, multi-strategy hedge fund where she managed the fund's business development and capital raising efforts. Previously, she was a director in the Global Derivatives Products group at Bank of America where she focused on the structuring and sales of interest rate, commodity, and equity derivatives. Jordan holds bachelor of business administration degree from the University of Massachusetts and a master of science in finance degree from the George Washington University. She is a Chartered Financial Analyst and is the chair of the CFA Society Chicago's Women Advisory Group.



*Special Notes Regarding Fees:
Regular and Affiliate Members may apply function tickets as payment for non-member and/or students member. Credit card is required to guarantee ALL reservations. Day-of-event registrations accepted on-site only if applicable and space available. There is a $5 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00 pm, Jan 17.

Passport Program
Members of any CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.

Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.