Has The SEC Made Equity Crowdfunding Economically Unfeasible?
Thursday, December 5, 2013
When the proposed SEC equity crowdfunding rules were released on October 23, those of us who had been anxiously waiting for months were finally given what we had been begging for. The long-awaited SEC rules had finally arrived. Equity crowdfunding under the JOBS Act was about to become a reality.
Then, we read the 585 pages of rules and comments. Some of us started to feel a little queasy. We all knew there would be a lot of rules, but surely the SEC would understand that a startup company would need an economical way to crowdfund under the JOBS Act. Apparently, the SEC did not get this memo.