New US SEC rule announced last week will allow investors with modest wealth to invest in smaller, start-up companies through Crowdfunding. The new US SEC rule was mandated by Title III of the 2012 Jump-Start Our Business Start-Ups Act.
It has taken this long for the US SEC to write a rule because it lacked the technology to supervise this new capital markets opportunity to tap into the smaller investor base composed of billions of dollars.
According to CFO Magazine -- Crowdfunding was already expected to surpass venture capital in 2016 at $34 billion.
What does this mean to the management accountant? It means that with the cost of data analytics and storage expenses of Big Data declining -- we are going to see better technology enhancements to auditing and analytics of data used for crowdfunding and the opportunity of the management accountant to move up the consulting to management pyramid.
Crowdfunding will also give management accountants an opportunity to look at alternative funding sources for the finance team as well as offering new services to management and/or their clients such as wealth management, assurance of information used for crowdfunding solicitation, compliance, education and investor advice.
Stay tuned for more information.
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