Crowdfunding Nod Has Positive Implications

BEVERLY HILLS, CA-Very recently, the SEC unanimously approved proposed rules on Title III crowdfunding as described in the JOBS Act that will permit businesses or investor groups and funding portals to participate in securities-based crowdfunding. If the final rules are voted through, then—following an implementation period that could take place as soon as early 2014—an 80-year ban on unaccredited investors making private placements could be lifted.

“From a macro level, millions of more individuals will have access to private investment who did not previously,” Jilliene Helman, CEO and founder of Realty Mogul, a locally based marketplace for accredited investors to pool money online and buy shares of pre-vetted investment properties, tells GlobeSt.com. “From that perspective, there’s a broader capital source in the private market, and things get more competitive. I don’t think it’s going to happen overnight—it will creep up in in the industry—but more things will be funded through individuals.”