Partner Stephen Goodman Interviewed by Forbes About Crowdfunding
Pryor Cashman Corporate Partner Stephen Goodman was interviewed by Forbes for its article “What You Need To Know To Profit From Crowdfunding.”
As part of the Jumpstart Our Business Startups (JOBS) Act signed by President Obama in April 2012, equity crowdfunding will allow entrepreneurs to sell unregistered shares directly to investors via the Internet. According to the article, for small investors it will be either a great “level-the-playing-field” opportunity to get in on the ground floor of promising startups, a federally sanctioned invitation to fraud on a scale not seen since the boiler-room days, or both.
Goodman told Forbes that “the target audience is likely to be unsophisticated. We already know the SEC has been extremely skeptical of this [crowdfunding] process.”
The Securities & Exchange Commission is supposed to finalize the rules that will implement the JOBS act early next year.
To read the article, which appeared in the June 25, 2012 “Investment Guide” issue of Forbes magazine and on Forbes.com, please click here.
