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
