Wednesday, January 29, 2014

Thoughts on new crowdfunding law? Comment period closes soon.

The 90-day public debate over the new equity crowd-funding legislation officially ends Feb. 3. 

The federal law, part of last year's bipartisan Jumpstart Our Business Startups (JOBS) Act, promises an easier process for raising capital. Under the new legislation, startups and small businesses can gather small amounts of money from non-accredited investors through online funding portals in exchange for small equity stakes in the company. 

However, fearing the new rules could cause small, inexperienced investors to lose money or be exposed to fraud, the Securities and Exchange Commission released nearly 600 pages of rules dictating the new provisions, which they opened for public comment.  

What are your thoughts? Want to comment? Do it here.