Crowd-funding, a new frontier for lawyersSeptember 21, 2015
Michael S. Harrington was featured in the Philly.com article “Crowd-funding, a new frontier for lawyers.” Full text can be found in the September 21, 2015 issue, but a synopsis is below.
Crowd-source financing has recently sparked the attention of many Philadelphia law firms focusing on capital markets due to its vast potential of developing small businesses. The SEC is in the process of proposing a more extensive form of crowd-sourcing that will allow the participation of investors who are not accredited.
Many believe that the proposal imposes too many restrictions, making it difficult for individuals seeking the form of funding to maximize its success. According to Harrington, “What we got was a very limited and very difficult statutory scheme, so that you cannot raise too much money and it is going to be very expensive.”