Donnerstag, 7. März 2013

Clearing Up

Clearing Up Confusion Around Crowdfunding

by Brian R. Knight, Co-Founder and Vice-President, CrowdCheck

Since the JOBS Act was signed into law almost a year ago, a vigorous debate about the merits of crowdfunding has occurred. There are scores of crowdfunding advocates and entrepreneurs poised to jump into this emerging marketplace as soon as the final rules and regulations are finished, but there are crowdfunding detractors as well who caution that this will be a fraught process. 

Steven Rattner, founder of the private equity firm Quadrangle Group, announced that he is no fan of the JOBS Act in the New York Times earlier this week. Mr. Rattner takes issue with many of the JOBS Act's provisions, but singles out the section of the bill commonly referred to as the Title III crowdfunding provisions as particularly troubling. His concerns reflect a misunderstanding of the emerging investment crowdfunding space. I do hope those misunderstandings are quickly resolved so everyone understands that these changes to securities law, if properly executed, are filled with more promise than peril. 

Copyright: HuffPost Business, 2013