Toptal

Executive Summary Crowdfunding continues to grow and mature as a funding source for small businesses. In the US, over the course of 2017, the first full year since the implementation of the JOBS Act, 636 businesses raised a total of around $270 million via crowdfunding campaigns. The UK market reached approximately £333 million of issuance in 2017, with headline-grabbing campaigns such as BrewDog’s recent $30 million raise. However, as the market continues to grow and mature, questions are being asked of the deal structures being used, and regulators have moved in to update relevant legislation. Regulatory burdens in the US threaten the market’s potential growth prospects. Title III of the Jobs Act, also known as Regulation Crowdfunding, was a way to allow companies to raise capital from both accredited and non-accredited investors with a lower regulatory burden. However, the act only allows companies to raise up to

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