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: , , , ,


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

GlobeNewswire (press release)RollerCoaster Tycoon Seeks Crowdfunding for Switch VersionIGNBy Alex Gilyadov Atari has launched a crowdfunding campaign to bring a new RollerCoaster Tycoon game to Nintendo Switch. The campaign is on the StartEngine platform, where Atari is seeking betwee [...]

Houston Business JournalHouston company launches energy crowdfunding platformHouston Business JournalThe new platform will let investors fund projects in relatively small increments that Minshew expects to average between $800 and $1,800, with the companies raising capital generally c [...]

The Straits TimesCrowdfunding sites have seen donors giving up to $100000The Straits TimesWhile most donors give amounts ranging from tens to hundreds of dollars, there are a few who have given single donations of up to $100,000 to charitable causes through crowdfunding sites. The lar [...]

NBCNews.comCrowdfunding helps former NFL player bring heat back to Baltimore ...NBCNews.comFormer NFL linebacker Aaron Maybin, 29, couldn't sit in silence earlier this month when Matthew A. Henson Elementary School in Baltimore, Maryland lost heat and electricity during the winte [...]

ForbesHow This Millennial Built A 7-Figure Business Using Equity CrowdfundingForbesWhen he asked them to help fund his company's crowdfunding campaign, they delivered—exceeding his initial goal fourfold and ranking it one of the fastest and most successfully funded companies on R [...]

The Straits TimesCrowdfunding sites have received $100k donations, Singapore ...The Straits TimesSINGAPORE - While most donors give between tens to hundreds of dollars, there are a few who have given single donations of up to $100000 to charitable causes through crowdfunding sites.. R [...]

VentureBeatNightmarchers seeks crowdfunding for a postapocalyptic trip to HawaiiVentureBeatThe action role-playing game Nightmarchers is adding a tropical twist to the end of the world. Developer Wyrmbyte crafted a postapocalyptic version of the Hawaiian island Oahu, incorporating loc [...]

The Sydney Morning HeraldEquity crowdfunding plugs the bank gap for Revvies Energy StripsThe Sydney Morning HeraldMr Nolan-Neylan says he expects the equity crowdfunding deal will cost between 7 per cent and 10 per cent of the amount being raised, or $25,000, and the deal was for up t [...]

NEWS.com.auVictims of John Warboys launch crowd-funding appeal for legal review of parole board decisionNEWS.com.auVictims of John Warboys launch crowd-funding appeal for legal review of parole board decision. VICTIMS of a “black cab rapist” who drugged and assaulted women rally again [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

2018 Fintech World Conference & Workshop, Announcement:Game Changer” Fintech World Media, PR & Marketing Group Proudly Presents: lnkd.in/gqdCrTr

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 |