Commentary: It’s time for our own crowdfunding law

Interesting article ...

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What are the problems with the federal crowdfunding law? To name just a few:

Companies won’t be able to use crowdfunding as a fundraising tool until the
SEC issues lengthy, complex regulations. We have no idea how long this will
take. Already the SEC has delayed issuing regulations on a much simpler
topic. The crowdfunding regulations may very well be delayed as well.

The federal crowdfunding exemption forces companies to use registered
broker-dealers or registered funding portals. Most private companies
raising funds do so without the help of broker-dealers or other
intermediaries. But for a company to crowdfund under the federal exemption,
it will be forced to use an intermediary. This is unfortunate.

By virtue of the particulars of the law, companies are going to have to
expend significant resources in order to comply with it to raise funds
(e.g., PPMs, audited financial statements, etc.). It is going to be very
expensive. Call it “Sarbanes-Oxley for Startups.” The law’s costs and
burdens are disproportionate to the capped amount of money companies are
allowed to raise.

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http://www.geekwire.com/2013/commentary-time-crowdfunding-law/