In the News

Rick McDonald Quoted in Crain’s Detroit Business Article on Crowdfunding

July 2, 2012

Rick McDonald, who leads Dykema’s Securities practice, was recently quoted in a Crain’s Detroit Business article on “crowdfunding,” a new method—using websites and social media—to solicit funds from small investors to attract capital for early-stage ventures. Interest in crowdfunding intensified with the April 2012 signing into law of the Jumpstart Our Business Startups (JOBS) Act. 

McDonald says that many questions that concern crowdfunding remain unresolved. Chief among these is the possibility that the Securities and Exchange Commission (SEC) may not complete writing the rules that govern crowdfunding by the January 1, 2013 due date. Until this task is completed, McDonald notes, start up companies will find it difficult to gauge the true value of this new funding mechanism.