US-based startups and SMEs will soon be able to reap the benefits of equity crowdfunding. The alternative lending method has just been made lawful by the nation's legislators, allowing such platforms to launch State-side.
This is just what Europe's largest crowdfunding platform is doing.
Seedrs is launching a test platform in the next few weeks, enabling US-accredited investors to put money into select campaigns. The platform will fully launch in early 2016.
Last Friday (30 October), the U.S. Securities and Exchange Commission (SEC) voted on Title III of the JOBS Act, creating the same fundraising opportunities that startups and growing ventures already enjoy in the UK, and enabling professionals, academics, business owners, angel investors and other interested parties to back businesses.
We believe this heralds the emergence of equity crowdfunding as a vibrant form of finance in the United States — just as it has become in the UK and Europe — and Seedrs is perfectly positioned to take advantage of the sector’s growth.
Jeff Lynn, CEO, Seedrs
The new ruling could see other equity crowdfunding platforms expand into the USA, using their experience gained in UK, where this type of financing launched in 2009. The next few months could well see more announcements in the altfi press.
As reported by CNBC.com, Crowdcube Co-founder Luke Lang thinks that the regulation change is a positive move, allowing "everyday American investors" to support businesses they believe in.