Is Title III Equity Crowdfunding Going to Work?

I was invited to appear on HuffPost TV the other day, to talk about crowdfunding.

The conversation quickly turned into a discussion of the potential negatives of crowdfunding, and the risks.

Then there was this article in Salon, with the subtitle: “Equity crowdfunding was supposed to be an economic boon. Instead it’s a disaster waiting to happen.”

I actually agree with the article of the Salon piece, at least in part. Because of the way Congress wrote the equity crowdfunding rules, Title III equity crowdfunding is going to be very expensive. This is going to reduce its attractiveness as a fundraising alternative. This is too bad. But the answer is not to scrap the experiment. But to revise the rules to make experiment workable.

 

About Joe Wallin

Joe Wallin focuses on emerging, high growth, and startup companies. Joe frequently represents companies in angel and venture financings, mergers and acquisitions, and other significant business transactions. Joe also represents investors in U.S. businesses, and provides general counsel services for companies from startup to post-public.
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