Common Complaints About Reg. Crowd Funding

Some common complaints about Reg. Crowd Funding, now that it’s almost a year old, include:

  • the $1 million cap (which, according to some, need not be since each investor is capped),
  • the investor cap (which is basically unenforceable as it’s untrackable),
  • the inability to use special purpose investment vehicles to aggregate investor money,
  • no pre-launch marketing,
  • the limitations on advertising the offering and
  • the regulatory costs, especially for the audit for raises over $500,000.

https://www.forbes.com/sites/devinthorpe/2017/02/26/investment-crowdfunding-what-works-and-what-needs-fixing/3/#5d5000aa46f6

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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: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, FINRA, Funding Portals, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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