Our CEO, Georgia Quinn, was quoted in this new article about crowdfunding at NextCity.org
“People are more inclined to invest with people that are like themselves,” says Georgia Quinn, a securities attorney specializing in crowdfunding.
If the Securities & Exchange Commission would implement a pending part of the JOBS Act (legislation that enabled today’s equity crowdfunding platforms), non-accredited investors could participate. If that happens as planned in October 2015, then just about anyone with extra cash and an Internet connection could get into the game.
Such a change could have even more potential to level the playing field for minority-owned startup firms. “When you open up the world of investors to every single individual, you are automatically going to get a more diverse body of investors, hence a more diverse body of investments,” says Quinn.
Not everyone is convinced it will work. Some say the rules of the JOBS Act are still too complicated to really encourage Main Street investment, but Quinn may have a solution. She recently co-founded LawBot, a legal technology company that assists small and startup businesses with raising capital. LawBot has developed a technology called iDisclose, which reduces the time and legal counsel costs of compliance by walking entrepreneurs through the process of creating the necessary legal documents for equity crowdfunding.
“It’s similar to TurboTax, but for equity crowdfunding,” says Quinn. Right now, it’s only developed for use with accredited investors, but Quinn plans to have it updated to be ready for use with non-accredited investors when the time comes.