HSE Securities partner, Alexander R. McClean, was featured in a recent Buffalo Business First article titled, “Raising money became easier for companies – and few people know.” In the article, Alex talks about the SEC’s initiative to relax crowdfunding regulations to help smaller companies raise funds. He explained that before the initiative, companies had to wait 21 days from when an offering was posted on an online portal before they could start to accept security payments from investors. “That just creates a delay,” Alex said. “One of the things (the SEC) did was suspend that requirement through the end of August, so it makes it a little easier for companies to raise money quickly.” He continued, “There are pros and cons to crowdfunding and it’s not for everyone, but for those businesses that have found this is the best option for them, a lot of the companies just aren’t aware of these relaxed requirements,” he said. “For companies that have been impacted by COVID-19 who have been looking at equity crowdfunding as a potential alternative, they should be encouraged to strike while the fire is hot.”
To view the article on the Buffalo Business First website, click here. (subscriber-only article)