TMCnet News
TABB Says SEC Rules Point to Institutionalization of CrowdfundingNEW YORK & LONDON --(Business Wire)-- Based on the SEC's (News - Alert) proposed crowdfunding Title II and Title III rules, equity crowdfunding will soon enter the United States, providing a new option for small businesses to raise financing, bringing with it the promise of democratizing access to capital by giving power to the crowd. But in new research, "US Crowdfunding: The Making of a Market," co-written by CEO Larry Tabb and contributing analyst Deepali Nigam, TABB Group says the jury is still out on the final rules' impact:
This is where TABB believes there is a role for institutions to set up their own platforms with significant advantages over funding portals. As Nigam explains, the cost of capital to an issuer when raising funds from an unaccredited investor is relatively expensive compared to traditional lending models. "This is perhaps the most important area for the SEC to get right if equity crowdfunding is to have a chance of succeeding." The 20-page report with 11 exhibits examines the impact of crowdfunding on US capital markets institutions, changes resulting from the JOBS Act; location, type and strategy of global crowdfunding platforms; growth forecast for angel investments, 2011-2016; issuer requirements; cost of crowdfunding with a 5-year exit plan; intermediary rules and costs; key considerations for Reg D private placements and crowdfunding and global crowdfunding regulations. The report can be downloaded by TABB Group Research Alliance Equity clients and media at http://www.tabbgroup.com/Login.aspx. For more information or to purchase the report, write to [email protected]. About TABB Group Based in New York and London, TABB Group is the research and consulting firm focused exclusively on capital markets, based on the interview-based, "first-person knowledge" research methodology developed by Larry Tabb.
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