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US Capitol Capsule: SEC's rulemaking could blunt crowdfunding's zeal

This article was originally published in Scrip

Executive Summary

When President Barack Obama signed legislation on 5 April that provides new avenues for raising capital for startup biotechs and other small companies, those firms were given the go-ahead to bypass Wall Street and venture capitalists and take their equity investment opportunities directly to small-dollar individual investors over the Internet, pending new rules from the US Securities and Exchange Commission (SEC).

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