New Whitepaper on Crowdfunding

Sep
2012
21

posted by on Articles and Commentary

Sarah Hanks

Washington, DC – September 20, 2012 – Sarah Hanks, CEO of CrowdCheck, Inc. and a CfPA board member, has published a whitepaper through Bloomberg BNA’s Securities Regulation & Law Report that sheds some light on the legislative and regulatory process of crowdfund investing.

Equity crowdfunding will offer small businesses a new tool to raise capital once the Security and Exchange Commission (SEC) and self-regulatory groups formulate rules for such investing under the new Jumpstart Our Business Startups Act. Beforehand,  the “crowd” could offer donations to projects online, but unregistered offers for equity through crowdfunding portals would have violated Section 5 of the federal Securities Act.

The JOBS Act, signed into law on April 5, 2012, will enable small businesses to raise up to $ 1 Million per year from small investors through online, crowdfund investing portals. The JOBS Act requires the SEC to formulate rules to regulate such crowdfund investing.

More on the whitepaper here.