Crowdfunding Will Strengthen Entrepreneurial Ecosystem
WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement as new rules by the Securities and Exchange Commission (SEC) go into effect to allow for small startup companies to raise capital through crowdfunding platforms. The new rules allowing for the creation of crowdfunding platforms is the result of Title III of the 2012-passed Jumpstart our Business Startups Act (JOBS Act), which NVCA played a leading role in helping to secure passage of.
“Full implementation of the crowdfunding provisions included in the JOBS Act has been a long time coming and we are pleased to see the SEC finally push the ball across the goal line. Anything we can do to help innovative startups raise the capital they need to grow and scale is good for the entrepreneurial ecosystem,” said Bobby Franklin, President and CEO of NVCA. “The bipartisan JOBS Act was a great first step in helping to provide startups with greater access to capital; however more is yet to be done. As a next step, we urge lawmakers to consider ways we can build on the bipartisan momentum to improve the vibrancy of the IPO market as well as address liquidity challenges facing companies after they onramp to the public markets.”