This article provides a guide for financial professionals considering equity crowdfunding (ECF) as an avenue of capital formation. This innovative financing method is relatively new in the United States and requires specialized knowledge of the ECF process and the governing laws for existing exemptions: Regulation A+, Regulation D Rule 506(c), Rule 147A Intrastate Offerings, and Title III of the JOBS Act, Regulation Crowdfunding. A list of the largest, most active U.S. funding intermediaries is included in the paper; a good fit between companies seeking capital and the listing intermediary may increase the odds of funding success.
Author: Bruce Elder, JD, professor at the University of Nebraska-Kearney, teaches courses in business and commercial law. Professor Elder holds a bachelor’s of science degree from Kearney State College and a juris doctor degree from the University of Nebraska College of Law.
Author: Suzanne K. Hayes, PhD, associate professor at the University of Nebraska-Kearney, teaches corporate finance, investments, and portfolio management courses. Dr. Hayes holds a bachelor’s of science degree from Nebraska Wesleyan University, a master’s of business administration degree from East Carolina University, and a PhD in finance from the University of Texas at Dallas.
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