When the Securities and Exchange Commission finally gets around to fully implementing it, the Jumpstart Our Business Startups Act (JOBS Act) will make it legal for companies to sell equity stakes to anyone over crowdfunding platforms.

Giving startup companies a new way to raise capital — from small investors on the Internet — could fund new ideas and change the way we buy real estate.

Companies like indiegogo, CrowdFunder and Realty Mogul are already inventing new platforms for investors to pool their resources to make new companies — and new real estate deals — come to life.

It’s been more than a year since President Obama signed the JOBS Act  into law, but the SEC has struggled to draft some of the rules required to implement the act.

One critic, Steven Rattner, worries that small, unsophisticated investors will be easy prey. He calls the JOBS Act the “greatest loosening of securities regulation in modern history,” and says it’s no wonder that the SEC has taken its time writing the regulations that would implement the act’s crowdfunding provision.

Some House Republicans who are worried that the SEC will be too cautious in implementing the JOBS Act are reportedly working on follow-up legislation that would also address what some business leaders see as the shortcomings of the original bill.

A section of the JOBS Act that eases the regulatory burden for companies with less than $1 billion in annual revenue to undertake an initial public offering is already in effect.

Although Trulia reportedly used provisions of the JOBS Act to make the company’s initial IPO filing confidentially, it bypassed most of the exemptions for small companies in order “to be just like every other public company,” CFO Sean Aggarwal told the Wall Street Journal in January.

To learn more about crowdfunding and the changing capital landscape, hear what leading experts have to say at Real Estate Connect San Francisco. Participating in a Wednesday, July 10 panel discussion, “Crowdfunding. A New Way to Buy. A New Way to Raise Capital,” will be Jilliene Helman, founder and CEO, Realty Mogul (@Realty_Mogul); Brandon Jenkins, director of product development, Fundrise, Popularise; Lou Doctor, CEO, Crowd Supply (@crowd_supply); and Nav Athwal, founder, RealtyShares (@navathwal).

Jilliene Helman
Jilliene Helman
Brandon Jenkins
Brandon Jenkins
Lou Doctor
Lou Doctor
Nav Athwal
Nav Athwal

See more of what’s on the agenda at Real Estate Connect San Francisco, which takes place July 10-12 at the Hilton Union Square.

Follow Real Estate Connect on Facebook, Twitter and LinkedIn:
Facebook Twitter Linked In

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription