PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Crowdfund Insider: AOIP and SBE Council Work to Improve Crowdfunding Rules

By at 18 March, 2019, 10:19 pm

Crowdfund Insider reports on a round of visits made by SBE Council president & CEO Karen Kerrigan and the leaders of the newly formed Association of Online Investment Platforms (AOIP) with key staff in the U.S. House and U.S. Senate, as well as with Securities and Exchange Commission (SEC) and White House staff, to discuss the progress of regulated crowdfunding, and improvements that will broaden its impact for both small businesses and smaller investors.  Representatives from several online platforms participated along with key AOIP advisors.

According to the piece:

Youngro Lee, CEO of Nextseed and Chairman of AOIP, said that one of their top priorities is to open a direct line of communication with both legislators and regulators to share the on-the-ground results of Regulation Crowdfunding (Reg CF) directly from the perspective of the investment platforms that have actual experiences dealing with issuers and investors utilizing Reg CF on a daily basis.

Lee said with the incredible support and assistance from the SBE Council, they met with various legislative staff from both sides of the aisle and from both chambers to deliver the key message that Regulation Crowdfunding, despite certain significant (and in some instances arbitrary) limitations, is actually accomplishing its original goal to strengthen and support the US main street economy by opening up access to the private capital markets.

“Specifically, since JOBS Act Title III was finalized in May 2016, several hundreds of millions of dollars have been raised for and invested in small businesses and startups (via both equity and debt) by enabling tens of thousands of everyday investors and communities to invest in companies they believe in,” said Lee.

SBE Council’s Kerrigan was also interviewed for the article, providing perspective on the importance of the issue and the outlook for reform in 2019.

Read the full article here.

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