6 Months In, Equity Crowdfunding Hasn't Quite Caught On

By Tom Zanki (November 10, 2016, 1:03 PM EST) -- Six months after equity crowdfunding rules took effect, lawyers say they are seeing little sign that the novel capital-raising method is taking off, attributing the slow launch to lack of awareness and practical limitations that curb its appeal.

The longer view is that with time, and potential adjustments to rules, the idea of letting mom-and-pop businesses sell stock to nonwealthy investors without the registration process that has been the hallmark of federal securities laws for more than 80 years will find its niche in the modern, and mostly online, marketplace. Right now, lawyers say experimentation is still somewhat tepid.

"It's certainly...

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