By Yin Wilczek

In recent comment letters, small businesses and other industry representatives warned that the Securities and Exchange Commission must lower the costs for issuers and intermediaries if equity-based crowdfunding is to be viable.

Many commenters, including the Small Business Administration’s Office of Advocacy, also are questioning the commission’s estimated compliance costs for those that may want to offer crowdfunded securities.

Conversely, a far smaller group of commenters–including state securities regulators–urged the SEC to increase investor safeguards by, among other measures, eliminating its proposed issuer safe harbor for “insignificant deviations” from the rules.


To implement the Jumpstart Our Business Startups Act, the SEC in October proposed Regulation Crowdfunding, a series of rules that would allow startups and small issuers to raise capital through the online offer and sale of crowdfunded securities .

The SEC’s proposal would impose tiered financial disclosure requirements based on three groups of crowdfunded offerings: below $100,000; from $100,000 to $500,000; and above $500,000. Issuers trying to raise $500,000 or more would have to provide, on an ongoing basis, audited financial statements.

According to commission estimates, it would cost issuers about:

• $12,960 to $17,960 for an offering below $100,000;

• $25,460 to $55,460 for an offering between $100,000 to $500,000; and

• $47,960 to $122,960 for an offering above $500,000.


Issuers would not be allowed to raise more than $1 million within a 12-month period.

The comment period for the proposal ended Feb. 3, and the commission’s website so far shows that it received more than 250 comments on the rulemaking.

Source &


Tags: , , , ,


Mountain XpressFaces in the crowd: WNC crowdfunding initativesMountain XpressON THE SPOT: The scenes in Luke & Jo will be shot chronologically, which will allow for more improvisation in the dialogue, according to the feature film's crowdfunding page. Andie Morgenlander and E [...]

AZCentral.comTiny companies lure investors under Arizona crowdfunding lawAZCentral.comInvestors who make bets under the state's one-year-old crowdfunding law certainly have the potential to get in on the ground floor, but they must be patient and might not receive any returns. Th [...]

BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

BBC NewsNHS trust 'relies' on crowdfunding to equip wardBBC NewsAn NHS trust has launched a crowdfunding appeal to buy equipment for a new hospital unit because "it cannot get started without donations". The Royal National Orthopaedic Hospital (RNOH) in Stanmore, n [...]

MottoIVF: More Couples Crowdfunding to Pay for Procedure - MottoMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports.More Couples Who Can't Afford IVF Are Turning To Crowdfunding For HelpRomperCouples des [...]

EntrepreneurIs Crowdfunding Right for You? Answer These 7 Questions to Find Out.EntrepreneurCrowdfunding is a popular and increasingly accessible way to put your prospective product or business in front of millions of people. And, thanks to the visibility of massive success stories, t [...]

Boing BoingCrowdfunding a bike-lock that squirts vomit-inducing antipersonnel gas when cutBoing BoingThe Skunklock is a $109 crowdfunded gadget that contains pressurized vomit-inducing gas the creators call "Formula D_1," and which is intended to induce immediate vomiting wh [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 marillion.com record, Kelly and the band realized that one of [...]

CFB Finance

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |