Crowdfunding is rapidly evolving. In just a few years the industry has gone from completely philanthropic roots towards an equity crowdfunding or investment crowdfunding model. For years, soliciting investments from the public or “the crowd” without lengthy and costly registration with the SEC was illegal, mainly because of the danger posed to people who do not understand the legitimate risks of making investments in early stage companies. Investment crowdfunding advocates like Launcht have proposed intermediary platforms make these investments safer and more accountable. The transparency of the internet, the safeguards offered through regulating online platforms, and limits on the amounts individuals can invest all protect the investor.
We have been on the forefront of this movement since October, 2011 and have developed trusted relationships with others in the field as well as the staff of key Democratic and Republican Senators that have shaped the policy and political debate on crowdfunding in Washington DC. It has been incredibly exciting and rewarding to be active in the legislative process and we have found Senators and their staff very open to engaging on this meaningful topic.
Launcht and many other equity crowdfunding advocates achieved a huge victory when The JOBS Act was signed into law on April 5th, 2012.
Launcht is developing a fully compliant investment crowdfunding platform and is very seriously considering the legal implications of licensing this as white-labeled software to our clients. We have yet to receive clarity from the SEC on some key points that will determine the nature of our licensing model. For now, we are letting potential clients know that we are very interested in providing the technology they will need to be compliant with the technical aspects of equity crowdfunding law. Contact us today to get set up now and get ready to take action as soon as the JOBS Act takes effect.
If you would like to read more about the progress of investment crowdfunding or equity crowdfunding please read the Equity Crowdfunding section of our blog.