Crowdfunding intermediaries, called funding portals, will bare a lot of the investor protection burdens included in the Jump-start Our Business Startups (Jobs) Act. Companies are expected to use them as funding portals or broker-dealers, nonetheless.
Slava Rubin is the CEO and co-founder of the crowdfunding platform Indiegogo. He said Indiegogo was leaning forward on equity investing, but was quick to note all the burdens of registering as a funding portal were still up in the air because further investor protections could come out of the US Securities & Exchange Commission (SEC).
“We think it’s an incredible opportunity,” Rubin told IFLR.
“I would guess there would be a lot of entrepreneurs in the US rushing to get registered as funding portals so they can help facilitate these transactions,” said Osler Hoskin & Harcourt partner Rob Lando.
David Lynn, partner at Morrison Foerster, thinks some startup companies might...