Wieffering: Start-up bill results in less-informed investors

  • Article by: ERIC WIEFFERING , Star Tribune
  • Updated: April 28, 2012 - 9:14 PM
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dealpenApr. 29, 12 9:46 AM

Eric, Good points here, but I am not too worried about crowdfunding. The stark reality is that the crowdfunding provision of the JOBS Act was a zombie upon arrival. It simply will not even be a viable option for 95% of companies that were hoping this could be their "magic bullet". What is more interesting though is that the JOBS Act opens the doors wide open for companies to advertise to conduct Rule 506 offerings (accredited investors only). This is actually the provision that is more likely to help further the buzz of deals like Bixby that relied on luring big investors. Regards, Patrick Donohue @DealPen

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