The so-called "JOBS Act" became law in 2012. Part of the JOBS Act was to make obtaining financial capital for the small businessperson or entrepreneur more easily available by making equity crowdfunding permissible under the securities laws and regulations promulgated thereunder. I have defined "crowdfunding" and its different flavors in several prior publications and will not repeat that exercise here. Although the United States Securities and Exchange Commission (SEC) has promulgated regulations regarding some portions of the JOBS Act, and some outsiders believe the SEC's move to clarify rule A+ offerings in 2015 was a positive. This Article, however, reiterates that, until full implementation of the JOBS Act's necessary regulatory environment occurs, penalties will continue to accrue to start-up enterprises, individual investors, and potential employees facing rigged employment numbers that negate those individuals who have simply stopped their respective job searches because of the economic environment.
David Groshoff, Equity Crowdfunding as Economic Development?, 38 Campbell L. Rev. 317 (2016).