Last week, CrowdDistrict had the opportunity to attend the Crowdfund Global Expo here in San Diego. During the two day conference we learned a great deal about the quickly evolving equity crowdfunding industry. In September of 2013, Title II of the JOBS Act was officially put into place which allowed startups to publicly advertise to accredited investors. Now, Title III of the JOBS Act has finished the 90 day comment period and is set to go in effect later this year. Title III will allow non accredited investors to invest their money into small percentages of startups. As each section of the JOBS Act continues to move through comment period to official law, it becomes increasingly complex in which certain rules could affect the industry for years to come.
The Crowdfund Global Expo was put on by CFIRA, or the Crowdfund Intermediary Regulatory Advocates, and served as an amazing educational tool for those of us excited for the young and emerging industry. CFIRA was established following the signing of the JOBS Act. CFIRA is led by industry experts from the top platforms or consulting firms. They tirelessly work with the SEC, FINRA, and any other government agency to help establish industry standards, rules, and best practices.
During the expo, we had the opportunity to speak with a few of the members of the board and the excitement really rubbed off on you. Each member we spoke with, which included DJ Paul, Joy Schoffler, Doug Ellenhoff, and Kim Wales, truly showed their passion for the industry through the way the spoke and shared their vision. It was not needed to be said, but the amount of work the entire board of CFIRA has been putting is very impressive.
DJ Paul, who is the Co-Chair of CFIRA, stated during his keynote speech to open the Crowdfund Global Expo “The JOBS Act is in the Top 5 most significant securities reform since the Great Depression.” Another board member, Kim Wales, stated “ We’re amongst a revolution in investing and how we raise capital. The first step has been passing the laws and setting the rules in place. The next step will be evolution.”
Clearly you can see the shared vision and bright future CFIRA holds for the equity crowdfunding industry. Also, most importantly to this board, is education to all the future people who become associated with crowdfunding in some way. As mentioned, the event was put on CFIRA and Coastal Shows to educate the community on the upcoming laws and opportunities.
We’ll be regularly updated you on the everything under the JOBS Act, Equity Crowdfunding, and certainly the progress CFIRA makes. Look out for their board members making news here on CrowdDistrict.