LGBTWeddings.com is inviting shareholders through Title III of the JOBS Act, which was adopted during the Obama administration. Title III opens traditional crowdfunding (charitable, reward, royalty, or lending, which would typically be used on sites such as Kickstarter, Indigogo, or GoFundMe.) to a new dynamic of investment opportunities for investors and funding for startup businesses.
We see equity-based crowdfunding as an opportunity for the LGBT community to own a part of the wedding industry; for wedding entrepreneurs to own a piece of equality and for like-minded individuals to have a vested interest in what we do as a company.
About the Jumpstart Our Business Startups Act (JOBS)
(excerpt from SEC White Papers, February 28, 2017)
The Jumpstart Our Business Startups (JOBS) Act was enacted on April 5, 2012. Title III of the JOBS Act amended Section 4 of the Securities Act of 1933 (Securities Act) and created a new exemption from registration for Internet-based securities offerings of up to $1 million over a 12- month period. Title III was intended to help small and startup businesses conduct low-dollar capital raises on the Internet. It can be thought of as an Internet-based method of raising seed financing from a broad, mostly retail investor base.
The JOBS Act included a number of investor protection provisions, including investment limitations, issuer disclosure requirements, and a requirement to use regulated intermediaries. The SEC proposed securities-based crowdfunding rules on October 23, 2013, and adopted final rules on October 30, 2015. Issuers were able to use the new exemption beginning May 16, 2016, when the final rules became effective.
While securities-based crowdfunding shares certain similarities with non-securities-based (lending-based, reward-based, donation-based, and royalty-based) crowdfunding, such as the ability of the public to participate and the use of an Internet-based platform to solicit backers, there are important distinctions. Most online, peer-based funding models fall outside the scope of a securities offering and thus generally are not subject to regulation under federal securities laws. Non-securities-based crowdfunding campaigns do not necessarily involve a profit-seeking business and ones that do may have a project-specific nature. Although crowdfunding investors may have nonpecuniary reasons for investing, backers in non-securities based crowdfunding campaigns are more likely to be guided by such motives. Overall, the differences in the legal framework, characteristics of fundraisers, and objectives of funders limit extrapolation from nonsecurities based crowdfunding to Title III crowdfunding.