Ellen Grady, a member of Cozen O’Connor’s Corporate Practice Group, discusses the equity crowdfunding regulations that took effect in May 2016. According to attorneys, there is little evidence to show if the new capital-raising method is taking off. Particularly given the millions of dollars that can be raised through other non-registered options, it’s not yet clear that crowdfunding issuers will find the new method worth the hassle. Ellen adds that it is “a real small amount in the context of raising capital privately these days” and that “it’s a struggle.” The new methods are part of the Jumpstart Our Business Startups (JOBS) Act to expand capital-raising opportunities short of a full-blown initial public offering.
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