Press Room

4/12/2012

EquityNet Featured as the Leading Equity Crowdfunding Platform by Forbes

Below is an article by Forbes entitled "Back to the JOBS Act: 10 Companies Poised to Take Advantage".  The article lists EquityNet as the number one company poised to take advantage of the JOBS Act and its crowdfunding deregulation.

Back to the JOBS Act: 10 Companies Poised to Take Advantage
By: J.J. Colao, Forbes Staff
April 10, 2012

On April 5, President Obama signed the JOBS Act into law in a ceremony in the Rose Garden of the White House. Title III of the bill legalizes equity-based crowdfunding,  a development that’s attracted the lion’s share of attention from many commentators, especially in the startup community.

Amidst the hype surrounding this development, it’s worth remembering that the government doesn’t quite act with the agility of, say, the startups the bill is intended to help. Though the SEC is scheduled to finish filling in the details of the legislation by the end of the year, deadlines mean little to a resource-strapped agency that still hasn’t fleshed out many of the rulemaking portions of Dodd-Frank.

Bottom line: it could be a long, long time before equity-based crowdfunding portals – those future Kickstarters for startups – can legally operate in the U.S.  According former SEC lawyer David Lynn, now a partner at the law firm Morrisson & Foerster, the agency could take as long as two years to lay down the law with regards to crowdfunding – meaning that companies looking to cash in will have a lot of thumb twiddling to do in the interim. Even after the SEC has its say, crowdfunding companies will be required to officially register with the agency as “funding portals”, the official term. Though less intensive than becoming a traditional broker-dealer, dealing with any government agency is rarely a piece of cake.

In spite of the many hurdles, there’s no shortage of companies who have either declared their intention to enter the crowdfunding game or who appear poised to do so once the law takes effect. I’ve included a sampling on the next page, but for a full list check out our slideshow, Ten Companies Poised To Profit From The JOBS Act.

EquityNet
Headquartered in Fayetteville, Arkansas, EquityNet is the only patented crowdfunding platform in the world. Founder and CEO Judd Hollas says that the company noticed SEC trends beginning in 1998 and patented In business since 2005, the company currently offers a networking platform for investors and entrepreneurs, as well as software for creating business plans and analyzing investment risk. CEO Judd Hollas confirms that the company intends to register with the SEC as a portal once the law goes into effect.

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