In recent years, crowdfunding websites have become a popular way for people to solicit charitable contributions to raise money for projects. Now, companies can use crowdfunding for a whole new purpose: to offer and sell securities to the investing public. The 2012 Jumpstart Our Business Startups (JOBS) Act established provisions that allow early-stage companies to offer and sell securities to the public with relatively light regulation. Both Regulation A+ and Regulation Crowdfunding help startups crowdfund equity investments from unaccredited and accredited investors. While the regulations were adopted in 2015, offerings under these rules gained significant traction in 2017. This report gives a comprehensive year end look at the equity crowdfunding that took place during 2017 in the United States.
San Diego-based shareholder Amit Singh authored this report with valuable assistance from Newport Beach-based associates Peter Hong and Arash Lessantiz.
Read the report below.