Abstract
Recent Securities and Exchange Commission (SEC) guidelines provide a regulatory framework for Title II of the Jumpstart Our Business Start-ups (JOBS) Act of 2012, that legalised interstate equity crowdfunding (ECF) in the USA. Concurrently, 18 states have passed legislation or regulations to allow intrastate ECF. Yet, the literature has not fully addressed what this nascent funding mechanism will offer to investors and those seeking funding for entrepreneurial projects in the USA. This article reviews current US legislation and the federal and state laws as they pertain to ECF. It also discusses the anticipated implications of ECF, provides a conceptual model that demonstrates how crowdfunding can change the traditional equity-financing continuum and discusses externalities that may emanate from implementation of this relatively new means of raising capital.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
