Montag, 8. April 2013

Chris Camillo On JOBS Act And The VC-BA Communities

What the venture capital community and angel investors need to understand is this: equity crowdfunding does not compete with traditional early stage investment channels, nor is it an elaborate ruse to pilfer hard earned money from unassuming Americans. It enables people—whatever they look like, whatever their background, wherever they reside, whatever their resources—to make their pitch to those people who know them and/or their idea best, instead of to just a handful of risk-averse institutional investors. It will even help venture capitalists vet opportunities and fill in the funding gap for entrepreneurs who face financial purgatory between the conception phase of a startup and the Series A funding rounds. Ultimately, it will bring massive efficiencies to our archaic system of startup and small business investing to the mutual benefit of entrepreneurs, investors and consumers.

With Mary Jo White set to be confirmed as chairwoman of the SEC, I remain hopeful that the rules for Titles II and III of the JOBS Act, which govern equity-based crowdfunding, may be released later this year. In her testimony during confirmation hearings, she said: “I would work with the staff and my fellow commissioners to finish, in as timely and smart a way as possible, the rulemaking mandates contained in the Dodd-Frank Act and JOBS Act.” Her verbal support for equity crowdfunding, going as far as calling the legislative mandates an “immediate imperative for the SEC,” is certainly a positive sign. Read more