Demand-driven crowdfunding regulation
Abstract
This chapter discusses investor, platform, and entrepreneurial views toward crowdfunding regulation. Specifically, this chapter considers the evolution of crowdfunding regulation from the perspective of the race-to-the-bottom/race-to-the-top debate. The empirical setting in this chapter is based on survey data from Canada in 2013(Q1) when equity crowdfunding was not permitted but was openly contemplated by regulators. The data show some tension toward a race to the bottom insofar as start-ups prefer fewer restrictions on their ability to crowdfund, and portals prefer fewer disclosure requirements and fewer restrictions on the free trading of crowdfunded shares. However, this evidence is ...
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