Commenters Complain About Crowdfunding Costs

As the comment period for the Crowdfunding rules has closed, it appears that the biggest concern of the commenters is the cost to initiate a crowdfunding campaign.

In particular, the requirement of audited financial statements, that could, per the SEC, cost up to $29,000, appears to have drawn the most wrath.

But other costs abound, including the payment of the portal, the escrow agent, money processors, counsel, finders, web ads, etc.

However, the commenters need to get real, in that even rewards-based crowdfunding has its costs. So, it seems that, regardless, you need a little money to make money.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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