Will JOBS Act Equity Crowdfunding Ever Happen?

On April 5, 2012, a revolutionary avenue of capital formation for small businesses was created when President Obama signed The JOBS Act into law and equity crowdfunding in the United States was born. Entrepreneurs with small businesses were excited by the prospect of using online crowdfunding to raise up to $1 million by selling equity in their company, something not allowed on rewards-based crowdfunding sites Kickstarter or Indiegogo. When the JOBS Act was passed, the new law gave the Securities and Exchange Commission until January 1, 2013 to publish regulations and rules that would allow this game-changing law to go into effect.

Almost three years later, the SEC still has not published the final rules, and JOBS Act equity crowdfunding remains on hold. How is this possible?

I spoke to Kendall Almerico, one of the top crowdfunding and JOBS Act lawyers in the country, after he finished his keynote speech at the Global Crowdfunding Convention and Bootcamp in Las Vegas. Kendall is just as perplexed as everyone else that the SEC has not finalized the rules that the JOBS Act itself required them to publish more than two years ago.

“If a law said you or I had to do something by a certain date, we would do it because we do not want to face criminal or civil penalties for not complying with the law,” Almerico says. “But the SEC is different. There is no real means to hold them accountable for not doing what the law says, so they can take their time and release the JOBS Act rules whenever they are ready.”

Congress passed the JOBS Act with overwhelmingly bipartisan support. Despite the bitter partisan fights going on in Washington DC, both parties strongly supported the use of online equity crowdfunding portals to help fill the small business funding problem that has existed since banks tightened up lending money to young businesses. Equity crowdfunding under the JOBS Act puts the funding of new and emerging businesses into the hands of the general public and takes it away from banks, wealthy investors and Wall Street. But none of it can happen without the SEC rules being released.

The SEC did release an initial set of proposed equity crowdfunding rules in October 2013 – 585 pages of them. But these rules have not been finalized and made into law, so nobody can use JOBS Act equity crowdfunding yet. Some have criticized the SEC for overly complicating a fairly straight-forward nine page law with so many proposed rules, but we must remember that the JOBS Act created entirely new methods of selling securities and overturned 80 year-old securities laws and decades of legal precedent. Because the SEC has to regulate what happens with this new class of capital formation, protect investors from fraud and enforce the laws against those who misuse it, they need to be very cautious and make sure the rules they pass get it right the first time.

So when will the final SEC rules come out and allow start-ups and small businesses to use this amazing tool to raise funds? Almerico says it could be another year before the SEC acts.

“The Securities and Exchange Commission released a rulemaking agenda placing the equity crowdfunding rules on their October 2015 agenda,” Almerico says. “Even after they are finally released, it takes 60 days to published them in the federal register before they become law. Looks like the earliest we will have JOBS Act equity crowdfunding will be in 2016.”

Despite the cynicism, some rumblings from the SEC give me hope that the rules may be released sooner than that.  SEC Chair Mary Jo White has publicly stated they she will be pushing forward “in the near term” to finalize the remaining JOBS Act mandates.

Let’s hope that “near term” means sooner, rather than later. Entrepreneurs need this law and the unprecedented ability to raise capital that it will bring to the small business economy.

Recent Posts

Scroll to Top

Robert L. Duncan – corporate strategy, and investor relations

Robert L. Duncan brings extensive experience in finance, corporate strategy, and investor relations to companies seeking growth and capital. He specializes in guiding businesses through the complexities of securing funding.

Duncan’s primary focus is on working with companies in the Food, Energy, Medical, and Housing sectors who are seeking growth capital. He plays a crucial role in assisting these borrowers in securing both loans and equity financing, leveraging his expertise to navigate financial markets. His responsibilities also include managing day-to-day operations and working with financial institutions on loan portfolios.

Earlier in his career, Mr. Duncan served as President and CEO of Pinnacle Investor Relations, LLC (2010-2015). In this capacity, he developed and executed impactful marketing and advertising campaigns for publicly held companies, presenting them directly to investors and investment managers. A testament to his strategic approach, he formulated campaigns that led to a 40% increase in firm revenues within a six-month period. He also has experience in client engagement and negotiation from his time as a Sales and Leasing Consultant at Mercedes Benz of Buckhead (March 2015-May 2018), where he consistently achieved recognition for his sales performance.

Robert Duncan’s academic background includes a Master of Business Administration from the University of South Carolina (1985). He shares his practical knowledge and insights as a frequent Guest Speaker at esteemed institutions, including the Clemson University Master of Accountancy Program (since 2023) and the University of Georgia Law School (since 2024), engaging with the next generation of financial and legal professionals.

Fadi Malouf – Strategic Buyer & Business Growth Architect

With over two decades of experience in scaling businesses and leading high-impact M&A strategies, Fadi brings deep expertise in acquiring and growing ventures across tech, real estate, and service industries. As President of FM Enterprises, he partners with private equity firms and investors to drive enterprise value, scale operations, and position companies for high-value exits. Fadi has access to over $2B in funding, a network of 800+ investors, and a proven track record of building companies from $200K to $5M+ in under a year. His structured, ROI-driven approach has led to successful outcomes across 62 U.S. healthcare locations, multiple private ventures, and large-scale advisory roles. At the heart of his work lies one mission: to engineer legacy-driven businesses that win.

Irina R. – Operations Manager | Digital Business Strategist

Irina R. is a seasoned Operations Manager with over 4 years of experience in project, team, and operations management for digital businesses, complemented by nearly a decade of leadership and management expertise as a B2B Account Manager at a French multinational universal bank and financial services company – Société Générale.

 

At Angel Investors Network, Irina plays a pivotal role in streamlining operations, optimizing workflows, and ensuring seamless execution of both internal and external projects.

Luisa B. - Web Designer and Marketing Design Strategist

Luisa B. is an accomplished Web Designer and Marketing Design Strategist with over 5 years of experience in web design, creative design, and digital marketing. As the creative lead, she collaborates on planning, developing, and launching high-converting campaigns that drive business success.

At Angel Investors Network, Luisa guides the design team, developing high-impact design and marketing solutions that ensure brand consistency and contribute to the successful launch of projects fueling company growth. Her creative expertise and collaborative approach strengthen Angel Investors’ digital presence.

John Reighard, Partner & EVP

John Reighard is a Partner at Angel Investors Network, where he leverages his expertise in business development, networking, and investor relations to help entrepreneurs secure funding and scale their businesses. With a passion for connecting people and ideas, John plays a pivotal role in fostering strategic partnerships and guiding business owners toward sustainable success. In addition to his work with Angel Investors Network, he also owns and operates two other small businesses.

 

A Connector and Networking Extraordinaire, Business Coach/Consultant, and Inspirational Speaker, John is deeply committed to helping individuals and businesses achieve meaningful results. His mission is to empower entrepreneurs and leaders to create lasting impact through strategic growth, financial acumen, and powerful relationship-building.

 

John has trained with, been mentored by, and provided consulting services to some of the world’s top thought leaders in personal development and business transformation, including Jack Canfield (America’s #1 Success Coach and Founder of Chicken Soup for the Soul), Stephen Covey, T. Harv Eker, Bob Proctor, Blair Singer, Robert Kiyosaki, Neil Rackham, Marcia Wieder, and Roger (Bud) Seith. These experiences have shaped his ability to guide clients through personal and professional growth, helping them unlock their full potential.

 

Before joining Angel Investors Network, John took a sabbatical in 2002, living with his family in Norway, Portugal, and France—an enriching experience that followed 15 award-winning years in Silicon Valley. During his time in the tech industry, he worked for leading companies such as Lucent Technologies, Exodus Communications, Octel Communications, and Brady Corporation.

Meet Jeff Barnes

Jeff Barnes is a former US Navy Nuclear power plant operator on a Submarine, Navy diver, risk management director, technology enthusiast, business growth expert, advisor and management consultant. Mr. Barnes sits on the boards of startup companies, runs a venture fund, supports non-profits supporting military vets, and spends most of his time helping CEOs and founders of growing companies automate, systemize, and scale to 8 and 9-figure valuations.

With over 20 years of technology, systems, operations, and marketing experience, Mr. Barnes has advised over 1,000 companies, invested tens of millions in advertising campaigns, and helped companies generate over $1 billion in investment capital.

As the chairman of Angel Investors Network and founder of Digital Evolution Marketing Group, Mr. Barnes has worked with founders, entrepreneurs, and CEOs around the world to accelerate the growth of their businesses and achieve substantial exits. He’s a father, husband, veteran, business owner, advisor, and mentor, and his true passion in life his helping others achieve success, freedom, and autonomy in theirs.