Title III of the 2012 JOBS Act created a new crowdfunding exemption that allows entrepreneurs to raise up to $1.07 million from a large number of small investors using internet funding portals. The final Securities and Exchange Commission (SEC) rule permitting crowdfunding was effective May 16, 2016. In 2016 as much as $28 million was raised using Title III crowdfunding and a reported $49 million was raised in 2017. These are relatively small sums compared to other means of raising capital. There are 38 funding portals currently registered with the Financial Industry Regulatory Authority (FINRA).
As we approach the two year anniversary of crowdfunding, please join us for a discussion of how crowdfunding is working to help small entrepreneurs raise capital, the prospects for crowdfunding, and what reforms are necessary for crowdfunding to work better.