Hype Hangover: Crowdfinance Industry Right-Sizes in Face of Weak Market Demand

The fledging crowdfinance industry is awash with fear and loathing these days. Just below the surface of the hype and evangelism about crowdfunding’s promise to circumvent the old boys’ club of traditional venture capital and allow entrepreneurs to raise capital directly from so-called “Main Street” investors, lies a growing realization that they – the “picks and shovels” makers of this new Gold Rush – may be the only ones excited about the prospect.

Whitney White

WR Hambrecht Loses Its Reg A Banker

Alternative IPO investment bank WR Hambrecht + Co. is losing the senior banker who has led the firm’s Reg A initiative, putting the future of the firm’s crowdfinance program in doubt. Whitney White, a partner and Hambrecht’s head of equity capital markets, is joining Prime Trust LLC, the trust company and crowdfinance back-office administrator spun off from FundAmerica last summer.

Reg A+

March Strongest Month Yet for Reg A Approvals

March was a record month for new Reg A offerings, following a similarly strong February, collectively making the two months the most active period for offering approvals since the Reg A+ reforms went into effect in June 2015.

The SEC approved 15 Reg A filings in March, besting last September’s record...