SEC Commissioner Aguilar discusses the SEC’s Crowdfunding Proposal

CLS Blue Sky Blog

The following is a speech given by SEC Commissioner Luis A. Aguilar on October 23, 2013, available here.  It is entitled “Harnessing the Internet to Promote Access to Capital for Small Businesses, While Protecting the Interests of Investors.”

Today, the Commission is proposing new rules to implement Title III of the JOBS Act, which exempts qualifying crowdfunding transactions from the registration and prospectus delivery requirements of the Securities Act.[1]  The new Regulation Crowdfunding is expected to be used primarily by small companies.  As is well known, although personal savings is the largest source of capital for most start-ups, external financing is very important to many small and medium-sized businesses.[2]  Unfortunately, as is also well known, many small businesses have difficulty finding external capital.[3]  It is worth noting that the need for outside investment is even greater among minority entrepreneurs, who tend to have lower…

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