It took four years for the Title III of the Jumpstart Our Business Startups Act (JOBS Act) to be officially enforced on May 16, 2016. Investment crowdfunding in the US is heavily regulated as compared to the UK, where regulators have been slightly more lenient which has resulted in Crowdfunding being widely viewed as a success in the UK.
The Congressional “Father” of Title III of the JOBS Act, Rep. Patrick McHenry, introduced the “Fix Crowdfunding Act” into the House of Representatives. Its provisions are focused on Keep reading this post
Title III crowdfunding is officially becoming the other variant of investment crowdfunding along with Title II and Title IV (Reg A+) already this May. Even though this will create a more vibrant capital ladder for companies seeking to raise capital using the internet, within the industry the views vary. By some Title III is viewed as critically flawed while others believe it will emerge slowly as participants adapt and find ways to accommodate the most challenging aspects of the exemption. According to recent information provided to Crowdfund Insider, approximately 30 platforms have applied to the SEC to operate as a funding portal. Of these platforms, less than two dozen have completed the filing with FINRA. None of them were deemed complete and remain in process. Interestingly, some of the more “visible” platforms have not (yet) submitted applications.
But let’s leave this stuff for lawyers and policy makers and take a look at something that most of these platforms focus on – equity crowdfunding implementation. Among all of the issues being discussed, there are some things that both novel investors and businesses raising money should think through. Keep reading this post