#364: Experts Comment, Offer Tips For Investment Crowdfunding Under New Regs
Read the full Forbes article and watch the interview here: http://onforb.es/20XvUiL. Subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. Last fall, the SEC issued long-awaited rules for investment crowdfunding. FINRA also issued its rules. The new rules become effective on May 17, 2016. It’s time for entrepreneurs to start thinking seriously about whether and how to take advantage of the them. I’ve invited three experts to comment and offer suggestions. Richard Swart, CSO of NextGen Crowdfunding, notes that “Regulation Crowdfunding is far from perfect – but it will allow the first inning of retail equity crowdfunding to begin. Expect legislative changes soon, but at least we now have opportunity for local and community oriented crowdfund investing.” “The single biggest misconception about Regulation Crowdfunding is that is is somehow an alternative to Venture Capital,” he adds. “Regulation CF will function at the seed round – or as an alternative to debt. Rapidly scaling high-growth potential technology firms are unlikely to use it.” “Congress made one huge mistake,” he says, referring to the fact that unlike Title IV of the JOBS Act, the new rules issued under Title III don’t allow for entrepreneurs to “test the waters” or solicit expressions of interest in an offering prior to conducting a full offering. Read the full Forbes article and watch the interview here: http://onforb.es/20XvUiL. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.