Equity Crowdfunding Struggles To Gain Steam At 1-Year Mark
Law360, New York (May 11, 2017, 8:39 PM EDT) -- One year since federal regulations authorizing equity crowdfunding went live — launching a novel method of capital raising that lets tiny startups raise money online from ordinary investors without completing the standard registration process that defines securities law — the idea is struggling to gain traction.
Early data show a limited number of companies dabbling with the new approach, and lawyers advising small startups say the concept has not generated momentum in the marketplace. Things could pick up over time, but attorneys say crowdfunding is moving slowly so far, largely because participants are still unfamiliar with the idea or are put...
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