Will Crowdfunding Supporters Be Disappointed When Legislation (Finally) Arrives?

If you’re an entrepreneur or small business owner, chances are you’re following the progress of draft crowdfunding legislation currently pending before Congress. The lawyers at Davis Wright Tremaine are too. So far, they’re not particularly impressed:

“I think crowdfunding is a great idea in concept, but I am afraid that crowdfunding enthusiasts are going to be sorely disappointed when Congress ultimately passes a bill. Why? Because I think all the bills being considered are critically flawed…All of them contemplate a fundraising process that involves a significant amount of complexity. So, what it looks like to me is that Congress is going to pass a securities law exemption that won’t be used very often because it is not going to be practical to use it. All of this excitement about crowdfunding will have been for nothing (or very little).”

Read the full update, The President Favors Crowdfunding, But Is It Good Enough?, Davis Wright Tremaine LLP»