Mike Johnson
Partner, Nelson Mullins Riley & Scarborough LLP
When Mike Johnson moved to Greenville and joined Nelson Mullins in 2012, his resume stood out thanks to five years working at the Securities and Exchange Commission in Washington, D.C. That led to his current specialization on corporate finance issues such as private equity funds and crowdfunding – topics of particular interest since South Carolina recently adopted crowdfunding rules and the SEC is expected to do the same in the coming months.
For Johnson, it’s another way to use his legal expertise to help businesses grow. He serves clients as outside general counsel to their executives and directors, is a regular speaker at conferences and conventions, and recently joined the board of directors at Elite Crowdfund, an Atlanta company that launched last month. He often attends Upstate events to meet the leaders of emerging companies so he can help them navigate the development stage.
“I try to offer a few lessons I’ve learned in 14 years of representing emerging growth companies,” he said. “When it all comes together, it’s a lot of fun.”
What brought you to Greenville and to Nelson Mullins?
My wife and I moved here in December of 2012 to be closer to her family and for me to join Nelson Mullins. Her parents retired to South Carolina and we wanted to be close to them, and we felt South Carolina was a great place for us to raise our family. I had worked with Nelson Mullins while at the Securities and Exchange Commission, so I thought it would be a good fit.
You spent five years at the SEC. Does that help you in your work now?
There are talented securities lawyers in the state, but having been on the inside is something that I offer that is unique, and it’s helpful in a lot of respects. From the time I was in law school, it was something I wanted to do. I knew it would be a great education and an opportunity to meet the real experts in securities law, and I knew I would get to see the kind of transactions that interested me: IPOs, cutting-edge securities developments.
The Jumpstart Our Business Startups Act, or JOBS Act, was signed into law in 2012. How has that affected your work and your clients?
The JOBS act was signed into law while I was at the SEC, so it was a really interesting time to be there. It proposed rules for crowdfunding and new ways to raise capital. It was designed to facilitate capital raising in the U.S. for smaller businesses. I’ve taken a particular interest in private equity funds and crowdfunding.
Tell us more about crowdfunding and how it affects S.C. businesses.
There are several types of crowdfunding, but it is generally offering securities over the Internet, in relatively small amounts, to a large number of potential investors. There are several national crowdfunding websites being used by South Carolina businesses, but the current equity crowdfunding websites can generally only raise capital from high net-worth individuals. The SEC is still in the process of adopting rules to open up crowdfunding to everyone.
Because of SEC delay, individual states are adopting their own rules, including South Carolina. The South Carolina rule permits South Carolina businesses to raise capital from South Carolina residents, with a $5,000 limit for non-accredited investors. Opening up crowdfunding to non-accredited investors is a delicate subject. While most would like to see everyone provided with the opportunity to invest in or support a business, you also want to ensure that more vulnerable investors don’t get in over their heads. It’s a balancing act, and that’s why the SEC has been so slow to finish its rules. The SEC plans to adopt rules in 2015, but we shall see.
After living in Seattle and D.C., what was it like to move to Greenville?
Greenville offered the opportunity to do sophisticated work similar to what I was doing in those cities, but without some of the headaches like traffic and the outrageous cost of living. There were so many things we liked here, like shows, restaurants and a walkable downtown area. We didn’t feel like we were giving up anything – except the things we wanted to give up.
Do you have any mentors who have guided your career?
I have several senior partners in the firm that are there for me on a regular basis. Neil Grayson recruited me and has been instrumental in my development.
What aspect of your work do you find most fulfilling?
It’s exciting to me when a client has a new business opportunity and they need to accomplish something – raising capital or making an acquisition to take that business to the next level. It’s satisfying to me to get to be a part of that and to help get them from point A to point B. It’s a team effort, and it’s exciting when the client is able to bring something to market that the community needs, and the community is better because of it.
