SEC Rules May Undercut Equity Crowdfunding PotentialPDF
Jordan Bernstein was interviewed for the article “SEC Rules May Undercut Equity Crowdfunding Potential,” published in Bloomberg BNA on May 18, 2016. The article addresses the Securities and Exchange Commission’s final rules for Title III of the JOBS Act permitting companies to offer and sell securities to unaccredited investors through web-based crowdfunding portals. For the last couple of years, businesses have been limited to crowdfunding via wealthy, accredited investors, but now, under Title III, they are able to raise capital (up to $1 million in 12 months) from investors from all walks of life. Mr. Bernstein explains that because of various SEC limitations, and associated administrative costs, the application of this new funding mechanism may prove limited. However, he notes that Title III could be useful for those businesses that want to raise capital from people in the local area to spread the word in a new community.