All that is wrong with Regulation Crowdfunding

is not enough.
Title III of the JOBS Act for raises of $1M or less, also known
as regulation crowdfunding or equity crowdfunding, is
historically powerful because it opens up the private
placement market in an historic way.
What is wrong with it?
Time, effort and money: Detailed compliance requirements
must be met before any money is raised; investment
vehicles that pool investors under special purpose vehicles
(SPVs)otherwise known as blind poolsare not allowed;
and ongoing disclosures postfinancing may be perceived as
onerous.
Filings: SEC staff has estimated that successful filings under
regulation crowdfunding will cost roughly 100 work hours,
both in-house and outside (lawyers and accountants). SEC
staff estimates dollar cost between $6,000 and $40,000,
depending on the facts.
Financial statements: If the raise is for more than $500,000,
it requires audited financialsunless the raise is for startups.
Periodic Updates: The SEC estimates 50 to 90 hours/annum
until the demise of the entity at which time there is another
filing requirement.
The upside?
Title III allows for a vast increase in the number of
prospective investors.

Connect with Douglas Slain

LinkedIn: http://linkedin.com/in/douglasslainTwitter:
https://twitter.com/exemptofferingsCrowdfunding platforms:
http://www.sanfranciscofunding.com Blog:
http://www.privateplacementadvisors.com/apps/blog