WASHINGTON, May 24, 2012 /PRNewswire/ -- As part of a lengthy meeting with the U.S. Securities and Exchange Commission last week, the National Crowdfunding Association, www.NLCFA.org, delivered a twenty-four-point memorandum outlining the primary concerns and open questions regarding the regulations the SEC is currently drafting for the American investment crowdfunding market. "We have a terrific team," said David Marlett, Executive Director of the NLCFA. "When good people come together to work for a greater good, it's an honor just to be in the room."
Co-Chairing the NLCFA's SEC Regulatory Committee is Steve Vidal, an Austin, Texas venture capitalist and entrepreneur, and Sara Hanks, a Washington D.C. securities attorney who served as general counsel to the TARP Congressional Oversight Panel. Ms. Hanks is CEO of CrowdCheck, www.CrowdCheck.biz, which provides due diligence services to the crowdfund market. Joining the SEC meeting last week was another member of the NLCFA's SEC Committee, Kiran Lingam, a securities attorney and strong contributor to the crowdfunding dialogue through his blog, www.1billionangels.com. Also participating were representatives of the crowdfunding portal, Early Shares, www.EarlyShares.com, helping give the portal's perspective on the issues being discussed.
"We are lucky to have attorneys Doug Ellenoff and Sarah Williams," said Mr. Vidal. "Doug was a representative of the National Crowdfunding Association at the first industry meeting with the SEC, a few weeks ago." Mr. Ellenoff and Ms. Williams are part of the NY law firm of Ellenoff, Grossman & Schole, www.EGSLLP.com, specializing in securities law with an emphasis on investment crowdfunding.
"The team did a great job of formulating the industry's top twenty-four issues," said Marlett. That memorandum is posted on the SEC's website at http://www.sec.gov/comments/jobs-title-iii/jobstitleiii-64.pdf. "And the work continues," added Marlett. "Now we narrow in on some key sticky-points, such as how a portal can brand itself according to the type of offerings it posts. But we are very pleased with many new revelations that come from our work with the SEC, such as: there will most likely not be annual cap on investments by accredited and institutional investors." Further, the NLCFA is seeking broad input from across the country and from every sector. Input can be given through the NLCFA's website, www.NLCFA.org.
Investment Crowdfunding, a revolutionary way of financing businesses in America, arose from part of the JOBS Act signed into law by President Obama on April 5, 2012. That Act allows small and start-up businesses to raise up to $1 million per year by issuing equity or debt securities to many small investors through an online site (portal). Investment Crowdfunding adds the investment element to what is an already successful donation model, popularized by online portals such as Kickstarter.
The National Crowdfunding Association, the oldest and fastest growing crowdfunding trade association in America, is comprised of a wide array of companies, firms and individuals who have an interest in the success of Investment Crowdfunding. Those members include businesses, crowdfunding portals, investors, attorneys, accountants, vendors, service providers, software developers, consultants, venture capitalists, angel investors, universities, students, and others.
For more information:
NLCFA Board of Directors
Co-Chair of SEC Regulatory Committee
SOURCE National Crowdfunding Association