Crowdfunding in Colorado Is Not Working - A Solution Proposed

Abstract

Crowdfunding in Colorado is currently not working and not living up to the legislative declaration found in C.R.S. § 11-51-308.5(2) or the expectation of the people involved in its creation. If equity or debt crowdfunding is still considered important for small business capital formation and jobs creation, a new solution must be found. At the end of the article, I propose a solution involving rulemaking by the Colorado Securities Commissioner rather than a legislative approach, but recognize the increased risks involved as well. The paper includes a suggestion for a broader stakeholder discussion on whether the Colorado Crowdfunding Act (the “CCFA”) is worth any more effort.