Doug Ellenoff, a leading attorney and advocate in the equity crowdfunding sector, visited our elected officials on Capitol Hill this past week to deliver an update on the status of crowdfunding in the United States. Crowdfund Insider posted the video here, but unfortunately Congressman Steny Hoyer cut Ellenoff short in presented his prepared remarks.
Ellenoff’s firm was kind enough to forward the testimony in its entirety (embedded below). As part of his comments Ellenoff hammered the fact that thousands of entrepreneurs have been aided by the parts of the JOBS Act that have been completed.
A few highlights of his testimony include some interesting points;
- Within the first twelve months after 506c became lawful, approximately 8.5% of all Reg D deals were done.
- The data seems to suggest that the number of “accredited investors” willing to participate in the exempt markets and provide investment capital to entrepreneurs, due to 506c presumably, increased by 50%, adding more than 100,000 new investors.
- In the first year [of Title II], there were 1,931 recorded 506c financings; 51 were specifically Manufacturing; 19 Agricultural; 98 Oil and Gas; 32 Restaurants and 33 Retailing.
- States seeing Title II issuers: Arizona had 44 closed deals; Colorado 52; Georgia 40; Illinois 65; Missouri 42; Nevada 26; Oregon 21; Pennsylvania 41; Utah 56; Virginia 25 and Washington 31.
Title II of the JOBS Act is creating more jobs. It is generating access to capital for firms in need of finance but there is still much to do.
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