In an exclusive report, Reuters says EU will come out with a document next week that will implement a pan-European crowdfunding law. And yet the US JOBS Act for equity crowdfunding is nearing it's second year and won't become a practical law earlier than 1000 days after it was signed into a law April 5, 2012 by President Obama.
The proposal to be released according to Reuters next week shows activity.?
?However, EU has similar processes as the US , which can be tedious and time-consuming. It takes EU laws potentially 1000 days as well to be implemented and that is not from a proposal but from the moment the EU Commission and Parliament passes it into law. We could be looking at a 3-5 year time frame should the proposal come out next week before it can be implemented.
?These things take time. There is a process. I wrote about this 15 months ago: 1000 days for an EU JOBS Act
In parallell,? Alessandro Lerro in Italy has been representing the majority of crowdfund?ing for equity startup platforms where Italy,? a year ago,? passed a crowdfund?ing law that none has to date been able to leverage there. ?
There is a lot of red tape but it is a movement towards liberation of capital and investments in Italy.? ?
Lerro says, "It's interesting that the EU is so convinced about the opportunity to boost crowdfunding as an innovative financial tool, that it is choosing to soften the approach against State aids; in Italy, this could mean a wide extension to all the SME of the Government's support from policy to innovation, so boosting the economic recovery."
David Drake is an early-stage equity expert and the founder and chairman of LDJ Capital, a New York City private equity advisory firm, and The Soho Loft – The Voice of Capital Formation – a global financial media company with divisions in Corporate Communications, Publishing and Expos. You can reach him directly at [email protected]