Practice Group Leader: Terri L. Adler

The Firm has a robust and cutting-edge Crowdfunding practice. 

In the past several years, so-called ‘Crowdfunding’ has morphed from a pint-sized way to raise roughly $1M from non-accredited investors to powerful platforms that permit fund-raises in excess of $25M from large aggregated groups of accredited investors.

We are not fans of the over-used word ‘disruptive,’ but are becoming believers that in its current guise, Crowdfunding is becoming a major change to the real estate world in how sponsors raise capital. 

In a general sense, crowdfunding is essentially raising (often smaller amounts of) capital from a larger number of individual investors. Real estate Crowdfunding has been made possible by changes to the securities laws and regulations – in particular, the relaxation of limitations upon the general solicitation of investors in the conduct of private placements of securities.

Properly used, Crowdfunding can become an important tool for real estate sponsors in all kinds of real estate projects.  There is a one-time hurdle involved in morphing the sponsor’s fund-raising documentation onto the applicable Crowdfunding platform, and thereafter multiple transactions can easily be effectuated.

Our team has handled capital raises for most of the high-profile Crowdfunding platforms and is familiar with all of the legal requirements, subtleties, and pitfalls, both business and legal.