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New SEC Rules May Undercut Equity Crowdfunding Potential

New SEC rules allowing companies to raise funds by selling stock over the Internet are set to take effect May 16. The rules would enable individuals to invest a small amount of money in a business venture through a funding method called equity crowdfunding.

Loeb & Loeb partner David Fischer is quoted on the new rules, stating that “the financial costs and limitations stipulated by the new rules may make it unattractive for companies to raise money through equity crowdfunding.”

Click here to read the article on Bloomberg BNA website.