If you remember that there once was a glimmer of hope for more sustainable financing for innovative small business (and, for my concern, an indie film industry) through “Equity Crowdfunding” as demanded by the JOBS Act of 2012, the fact is that it’s not going to happen. It’s already far past the Act’s imposed deadlines because the concept is anathema to the entrenched and self-interested bureaucracy.
Instead of becoming a ‘big brother’ to the dynamic and egalitarian donor crowdfunding process that helped the art of indie film continue through the Great Recession and the Great Digital Disruption, the SEC and FINRA bureaucracies have delayed it and gutted it by turning it into a ‘little sister’ to mammoth elitist and exclusive brokerages.
A key element to kill the hope of equity crowdfunding: “the SEC decided that the financial statements should be provided in accordance with US GAAP (Generally Accepted Accounting Procedures). That is expensive…” and beyond the capability of most small business start-ups.
Equity crowdfunding will be nothing more than an easier way for the well-to-do professional investors to invest money in large corporations, but will not be an open door for the common citizen to participate in rebuilding America’s economy. There will be no widespread job creation, just as there hasn’t been since the Act was signed years ago. The dreams of the JOBS Act and its Equity Crowdfunding have been swallowed up by the bureaucracy and entrenched self-interests of the professional funding elite.
Say goodbye to the crashed dream of Equity Crowdfunding helping rebuild America through small business creation (including a healthy indie film industry infrastructure.)
By the way, if you are the type of person who believes entrenched anti-citizen bureaucracy can be swayed, you can let the SEC know your opinion about allowing Equity Crowdfunding to be accessible to all citizens by emailing your statement to firstname.lastname@example.org
See “JOBS Act, Title III: A Brief Update on What’s Happening Behind the Scenes“)
Also see my original assessment, “FILMMAKERS, IT’S 2013. DO YOU KNOW WHERE YOUR JOBS ACT IS?“