U.S. House of Representatives Passes Fixes To Equity Crowdfunding Laws
Friday, July 22, 2016
As the CEO of Crowdfunder, a leading equity crowdfunding platform + venture fund, I see firsthand how the ability to reach thousands of Institutional and individual angel investors online through equity crowdfunding is transforming startup fundraising and early stage venture capital.
Unfortunately, the highly anticipated “boom” of access to non-accredited investors, namely regulated under Title III, is a bit of bust. I wrote previously about how Title III Crowdfunding Will Disappoint Entrepreneurs.
The Fix Crowdfunding Act Bill was introduced in Congress on March 23rd, two months prior to Title III officially going into effect in May. Some key legislators including McHenry (R – NC) who sponsored this new bill, are aware of the shortcomings of the previous legislation and want to improve it. The Fix Crowdfunding Act passed through the House of Representatives with a 394-4 vote on July 5th and now moves onto the Senate with major bipartisan support.