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U.S. Securities Crowdfunding, Joan Macleod Heminway

Book Chapters

In May 2016, a U.S. federal registration exemption for crowdfunded securities offerings came into existence (under the earlier adopted CROWDFUND Act) as a means of helping startups and small businesses obtain funding. In theory, this exemptive regime was an attempt to fill gaps in U.S. securities law that handicapped entrepreneurs and their promoters from obtaining equity, debt, and other financing through the sale of financial investment instruments using digital offering platforms. The use of the internet for business finance is particularly important to U.S. entrepreneurs who may not have access to traditional, institutionalized sources of funding because of their own …