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Chat with the Experts on How Crowdfunding in the U.S. Will Take Shape
editorial

Chat with the Experts on How Crowdfunding in the U.S. Will Take Shape

Key details: Our live chat with the leadership group working to develop a self-regulatory framework for the crowdfunding industry will begin at 5pm GMT / 12pm EST / 9am PST on Monday, April 9. You can submit your questions for this panel of experts right now in the comments at the end of this post, or to eric.mack@crowdsourcing.org.

As President Obama is expected to sign the JOBS Act into law at 2pm EST on April 5, 2012, a leadership group consisting of equity and debt crowdfunding platforms and industry experts including legal, securities and SEC experts, have mobilized to explore the development of a self-regulatory framework for the crowdfunding industry. The JOBS Act requires that all equity and debt crowdfunding platforms be a member of a national securities association. This leadership group will explore the various paths to meet that requirement in ways that protect investors and support a vibrant industry.

Chat live on Crowdsourcing.org with representatives from this group, including Jason Best and Sherwood Niess, Startup Exemption; Ruth E. Hedges, CEO of Funding Roadmap; David Drake and Dara Albright of SoHoLoft; Candace Klein from SoMoLend; Spencer Taylor, Co-Founder of LaunchtVince Molinari, CEO of Gate Technologies; and Kevin Berg Grell from CAPS/Crowdsourcing.org, Berkeley Geddes, CEO of Grow America Ventures, Chance Barnett, Founder & CEO of Crowdfunder.com, Michael Norman, Co-founder of Wefunder.com at 5pm GMT / 12pm EST / 9am PST on Monday, April 9 to ask questions and offer input regarding key elements of the framework including principles that will:

  • Establish strong protections for investors in the form of an Investor's Bill of Rights, including tests to assess investors' understanding of risk, criminal background checks on issuers, and adequate disclosures by issuers;
  • Ensure confidentiality of investors’ personal financial information;
  • Ensure that investors do not exceed statutory investment limits, by implementing standardized reporting and communication among platforms;
  • Establish standard communication processes for transparent flow of information between the issuer, the investor, the intermediary and the regulatory agency;
  • Develop a code of conduct for crowdfunding platforms, with enforcement mechanisms to punish bad actors;
  • Create a recognizable brand common to trustworthy intermediaries.

Founding leadership group members (in alphabetical order) include:

CAPS Crowdfunding Accreditation Program
Crowdfunder
Funding Roadmap
Gate Technologies
IndieGoGo
Launcht
Motaavi
RocketHub
Soho Loft Capital Creation Events
Somolend
Startup Exemption
Wefunder
• The founders of ProFounder Dana Mauriello & Jessica Jackley

To be sure to get your questions answered by these folks at the center of the burgeoning crowdfunding industry, feel free to leave your queries in the comments below or e-mail eric.mack@crowdsourcing.org. We'll also be checking our Facebook page and Twitter feed for your questions and comments.

Also, read up on Crowdsourcing.org's coverage of the JOBS Act and the crowdfunding industry in the U.S.:

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