TABB Says SEC Rules Point to Institutionalization of Crowdfunding


tabbNEW YORK & LONDON — Based on the SEC’s proposed crowdfunding Title II and Title III rules, equity crowdfunding will soon enter the United States, providing a new option for small businesses to raise financing, bringing with it the promise of democratizing access to capital by giving power to the crowd.

But in new research, “US Crowdfunding: The Making of a Market,” co-written by CEO Larry Tabb and contributing analyst Deepali Nigam, TABB Group says the jury is still out on the final rules’ impact:

Will they have the power to create a healthy new marketplace where US small businesses will be able to successfully gain access to funding?
Will crowdfunding expose innocent, small-time investors to fraudsters and scam artists?
Will the rules prove too rigid, stifling this industry before it even starts?
Will crowdfunding be too expensive for US businesses?
Who will gain advantages, broker/dealers or funding portals, with barriers-to-entry costs for one, potential liability exposure for the other, among other issues?
Assuming a conservative 5% growth rate per year, TABB believes angel investing will grow to at least $28.5 billion by 2016, but will angel investing rules be more impactful to investors or issuers?
As new platforms targeting accredited investors emerge, how easy will it be for high net worth individuals to meet their investment strategy requirements from as little as $1,000 to $37,000 per investment?

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About Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.
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