Before the rules of REG CF were released, many companies would say they were raising capital through ‘crowdfunding’. Often they were not doing under the proper regulations offered through the JOBS Act or the SEC or their own state’s securities regulations. And, as capital formation methods of REG A+ become more popular, companies may cut
We are in a unique place in American history. Crowd Finance, the ability to attract capital from a crowd of strangers, has fundamentally changed the entire capital formation and access to capital paradigm. For the first time, investors and entrepreneurs are experiencing “Disintermediation” – the attempt to do away with the intermediary entities between two primary market forces to eliminate the middle man.
