Crowdfunding history2

The Crowdfund ActA History

Sustainable Economies Law Center, Summer 2010

Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.

Margaret Mead

Presented by Jenny Kassan, Cutting Edge Capital

Where did it all begin?

Paul Spinrad from Make Magazine researched the issue and found an article in East Bay Express that Jenny Kassan had written.

Paul contacted Jenny and proposed working on a rule making petition to the SEC.

Federal Reserve Bank of S.F. – Community Development Investment Review, Vol. 5, Issue 2, 2009

Local Stock Exchanges and National Stimulus by Michael Shuman

Paul Spinrad of Make Magazine Launches a Crowdfunding Campaign

Letter to the SEC requesting a rule change for investments of up to $100

Approx. 150 letters of support!

Late 2010 – ASBC declares support for petition!

Frank Knapp interviews Jenny about the petition on Oct. 29, 2010 on U Need 2 Know1230 AM WOIC

November 18, 2010

Paul Spinrad:

On Wed eve Nov. 17th, a bunch of us got together at the CommonWealthGastropub in DC: me, Frank Knapp (South Carolina Small Business Chamber of Commerce), Atlee McFellin(ASBC), Stacy Passeri (KiteTale LLC), Brian Parkinson (recent Law School grad with community development experience), and Doug Rand (White House Office of Science and Technology Policy - OSTP).

Paul Spinrad:

Mary Schapiro noted in her presentation that small businesses are responsible for 60% of all domestic jobs in and 90% of all U.S. patents.

So that means six people at the SEC are in charge of regulating securities for most of the U.S. economy.

Presumably the SEC's other 3792 employees somehow divide up the rest.

March 2011

WoodieNeiss creates

StartupExemption.com

Gets support from Whoopi Goldberg

Small Business & Entrepreneurship Council gets involved

Letter from SEC Chair Mary Schapiro to Rep. Darrell Issa, April 6, 2011

Footnote 77

September 2011

Congressional hearings and support from President Obama!

Entrepreneur Access to Capital Act Passes the House

Nov. 3, 2011

The CROWDFUND Act

Signed by the President on April 5, 2012

Creates a new federal exemption for offerings of up to $1 million in which

each investor invests no more than 5% of his/her annual income or net worth

offerings are conducted through a registered intermediary

Not expected to go into effectuntil early 2013.

Recommended Reading crowdfundinglaw.com