This recent article from the Wall Street Journal discussed the current status of equity crowdfunding, following the enactment of the Jumpstart Our Business Act (or "JOBS Act") in April 2012. While certain of the JOBS Act's provisions have taken effect, the most anticipated element of the JOBS Act was likely the legalization of "equity crowdfunding," a means by which small companies could raise capital from investors other than just those who met the "accredited investor" standard. It was hoped by many that equity crowdfunding would spark significant growth and development in small and mid-sized companies by opening more potential investors' doors, while simultaneously allowing non-accredited investors to consider investments in companies that were not otherwise available to them. Two years later, the SEC has still only released proposed rules regarding equity crowdfunding, and, as the WSJ reports, the stall has inspired one Congressman to introduce legislation specific to equity crowdfunding as an attempt to try to move the process along faster.
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