Talk about ignorance. KJ Erickson clearly violates SEC crowdfunding rules on LinkedIn that prevent companies that seek crowdfunding to advertise “deal terms” (such as the raise amount, the security details, the price of the security, the closing date of the campaign, etc.) on social media.
The thing that strike me, is that she, apparently, in charge of a “legal services” marketplace 🤭
I am not an attorney and have never done crowdfunding, but this post clearly violates the rules outlined by the JOBS Act and … constitutes securities fraud…
KJ Erickson’s post reads:
“5 months ago, UpCounsel launched its equity crowdfunding campaign on WeFunder. Since then, we’ve raised over $3.5M on-platform from more than 1,600 investors, making it one of the largest Reg CF campaigns in history. In that same time, we’ve grown the revenue run rate by 42% and traffic to almost 2 million users a month.
This evening, we close our campaign for good! After a career that’s involved more capital raising than I might have preferred, this crowdfund has given me a whole new passion for fundraising. It’s made me think about the future of alternative models for equity distribution, and made me a super believer in the value of having your users as your shareholders. And while I’d be the last one to ever promise that an investment is a good one, I can say with certainty that I’m incredibly excited about how many things are lining up for UpCounsel. Giving this company a new birth — from when it announced shutdown last spring to the profitable growth it’s experiencing now — has been an absolute joy. Getting to do it alongside such an incredible team including Paul Drobot Danny Page Xavier Helgesen and Sieva Kozinsky has been even better. I didn’t know I could have this much fun working on a company that I didn’t start, but I feel very lucky that I got to find out.
So for those of you that already invested — thank you. For those of you that have been thinking about an investment, you’ve got until 8pm pacific tonight. I’ll post the link to our WeFunder page in the comments. Regardless, and perhaps more importantly — please think of us when you hear about a founder or friend who needs a good lawyer. Chances are that you’ll save that person 60%+ over them turning to Big Law. This campaign was successful because of the thousands of happy clients that UpCounsel has served over the years. We’re hoping to take that number into the millions over the next decade.
Also PS — equity crowdfunding is awesome. If you’re a founder considering a crowdfund raise, I’m happy to talk and tell you everything we learned. Hit me up anytime.”
I could care less about UpCounsel or how this round runs, this post is about quality of information and leadership. Maybe have someone with better legal expertise run your legal services marketplace?
There are only two types of communications permitted on social media for companies that seek funds subject to the JOBS Act:
(1) Posts that don’t mention the “terms of the offering”
(2) Posts that just contain “tombstone” information.
P.S. — KJ Erickson blatantly refused to remove her unlawful posting, prompting myself to report it to the United States Securities and Exchange Commission under a Submission Number: 16390–762–883–748 on Thursday, December 09, 2021.
U.S. Securities and Exchange Commission #securitieslaw #securities #crowdfunding #legalservices