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Comment on Start-up Companies Await SEC Guidance on Equity Crowdfunding by Bahar Elçin Mammadov
['The Regulatory Review', 'Lauren-Kelly Devine', 'Samantha Heavner', 'Caroline Cecot', 'Susan E. Dudley']
Comments for The Regulatory Review
Last year, entrepreneurs across the country cheered the announcement of the CROWDFUND Act, a federal statute that will enable start-up businesses to raise funds from investors through specialized Internet portals. As a part of the Jumpstart Our Business Startups Act (JOBS Act), the CROWDFUND ACT legalized some forms of this money-raising technique. Too many regulatory requirements, crowdfunding advocates worry, may render the crowdfunding provision of the JOBS Act completely ineffective, as many small businesses will be unable to afford compliance.