US crowdfunding expert Kendall Almerico has advised Americans eagerly awaiting the implementation of the JOBS Act not to hold their breath.
The long-anticipated act was expected by many to make equity crowdfunding available from the off in 2014, but Almerico deems this unrealistic: “Because the public comment period ends in January 2014, people believed they would be raising funds through equity crowdfunding after the first of the year. That will not happen”.
Almerico, a crowdfunding expert and CEO of ClickStartMe, cites several reasons which suggest delays: “Most importantly, FINRA’s public comment period does not end until February 4. There cannot be any “funding portal” or equity crowdfunding site open for business until the FINRA rules are final”. He further points out that each funding portal must register and be approved by FINRA. “By law, FINRA will have 60 days to process the application. So, at the very earliest, we may see our first equity crowdfunding portal in early April 2014”. Any changes to the proposed rules by the SEC or FINRA would only cause a further delay.
Despite his reservations, Almerico was optimistic about the first US funding portals opening by mid-2014, but also confessed his uncertainty: “Nobody really knows when. Maybe we should ask The Amazing Kreskin for a prediction”.