Christina Marshall in Dallas Business Journal: Crowdfunding Law 'Revolutionary Piece of Legislation,' Experts Say

11/09/2012

A new law that takes in effect in January will change drastically how small businesses raise money, a pair of experts said Thursday morning.

But speaking on a panel at the Southwest Venture Forum in Dallas, the two cautioned that there is a strong potential for mischief makers to use for bad ends the law expanding the use of so-called “crowdfunding...”

Long used for raising money for philanthropic purposes, crowdfunding is the raising of capital or other resources by a group of people, generally in small dollops and often via the Web.

The JOBS Act, which opens the door for crowdfunding to be used for raising equity financing for businesses, “is a revolutionary piece of legislation,” said Christina Marshall, an associate in the Richardson office of Haynes and Boone, LLP.

Excerpted from Dallas Business Journal, November 9, 2012. To view full article, click here (subscription required).

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