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Equity Crowdfunding Struggles To Gain Steam At 1-Year Mark

May 11, 2017, Law360

Keir Gumbs is quoted in a Law360 article evaluating the efficacy of equity crowdfunding rules, which took effect one year ago. According to Gumbs, “The rules were a step in the right direction, but there are so many hoops that have to be jumped through both in terms of the companies doing the fundraising but also the investors.”

Gumbs discusses how crowdfunding can be fairly restrictive in comparison to traditional Regulation D private placements. “Why would I invest through a portal in one of these crowdfundings, as opposed to just doing a Reg D investment without the limitations?” Gumbs asks. “I get the investor protection part. I think that’s important. But the bottom line is I think maybe the statute went a little far in that regard.”

 

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