CONTRIBUTED BY
Andrew Ledbetter
andrew.ledbetter@dlapiper.com

Like other capital formation bills we’ve discussed, the House of Representatives has overwhelmingly approved (by a vote of 407-17) the “Entrepreneur Access to Capital Act,” H.R. 2930.  Subject to certain limitations, H.R. 2930 would allow businesses to raise money selling unregistered securities using “crowdfunding.”

Crowdfunding generally involves raising funds from large numbers of people typically in small amounts, often using social networks.  Crowdfunding has been used successfully for charitable purposes, where participants donate funds, but the public nature of most crowdfunding solicitations limits the ability of businesses to raise investment funds using crowdfunding. Continue Reading Crowdfunding Bill Overwhelmingly Approved by House