Later this year US retail investors will finally get the chance to buy shares in SME’s via crowdfunding platforms, however there are concerns that due to stringent Title III restrictions, US crowdfunded equities will have a much slower start than they did in the UK five years ago. SEC of the JOBS Act, which comes into effect on 16 May and regulates crowdfunding, is seen as “significantly more restrictive than the way equity crowdfunding works in the UK and Europe” according to Jeff Lynn, CEO of crowdfunding platform Seedrs.
Later this year US retail investors will finally get the chance to buy shares in SME’s via crowdfunding platforms, however there are concerns that due to stringent SEC restrictions, US crowdfunded equities will have a much slower start than they did in the UK five years ago. Title III of the JOBS Act, which comes into effect on 16 May and regulates crowdfunding, is seen as “significantly more restrictive than the way equity crowdfunding works in the UK and Europe” according to Jeff Lynn, CEO of crowdfunding platform Seedrs.