Should Startups Proceed with Caution Under the New Federal Crowdfunding Program? - McDermott Will & Emery

Should Startups Proceed with Caution Under the New Federal Crowdfunding Program?

Overview


Gary Emmanuel advised startups to “proceed with caution” in using the crowdfunding provisions of the JOBS Act, and to ask themselves if they have the resources to adequately prepare and document funding requests. Mr. Emmanuel explained that legal and accounting budgets alone will be difficult to cover through crowdfunding, a process which he said “raises the level of scrutiny these kind of companies are exposed to. It’s all very public.”