Raising Money from the Crowd (Version 2.0)

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3 Responses

  1. Steve Bradford says:

    Thanks for the cite. You might also want to see my new draft on the JOBS Act crowdfunding exemption. It’s available on SSRN at http://ssrn.com/abstract=2066088

  2. Miriam A. Cherry says:

    Thanks for posting that link, Steve.

  3. Joan Heminway says:

    As Steve suggests in his new draft piece (and as the two of us and others have said since the JOBS Act was signed into law back in April) the costs of the system established by Congress in the CROWDFUND Act may be so high that the only businesses that may be able to raise capital using that system will be those who have generated enough capital through other means to be able to afford the crowdfunding option. We’ll see. We cannot really even create a cost model for these offerings until the SEC regulations are adopted, and that will not take place for many months. So, bottom line, crowdfunded securities offerings by the small businesses that are and were using crowdfunding to seek funds over the Internet (in transactions not governed by the securities laws, in most cases) may not become a reality under the CROWDFUND Act.