Noah J Nelson on Friday, Feb. 7th
After letting the matter stew for months the Security & Exchange Commission finally got around to laying out the rules for equity crowdfunding called for in Title III of the JOBS Act.
Now that they have been published the public comment period has opened up, and at least one crowdfunding platform is voicing their concerns. That platform is the film-focused Seed & Spark, and they’ve published an open letter to the SEC.
Their two major problems with the new rules?
• Cost. The proposed rules would make it cost-prohibitive for both filmmakers and other fundraisers to raise capital in small increments and for existing crowdfunding sites to expand into equity crowdfunding. Thus minimizing the purpose of the law-–expanding access to capital.
• Advertising. The advertising restrictions will fundamentally alter the integral, collaborative promotion of crowdfunding projects.
That’s just the bullet point summary, the full letter gets into the nitty gritty details.