Subject: File No. JOBS Act Title III
From: Peter Ojo
Affiliation: CEO, VTNGLOBAL

May 31, 2012

Thank you for the opportunity to contribute to the crowdfunding provision during this draft regulation

(1)Flexibility on choosing a crowdfunding platform or DIY
The crowdfunding law seems to make it mandatory for entrepreneurs to go through intermediaries in order to raise funds. While this provision may be helpful to many companies, it is critical to note that businesses are not equal and stages of development defer. Some businesses may find it more appropriate to package the offering themselves and offer to their existing customers. The SEC should include a provision and guideline that allows companies wishing to crowdfund/raise capital without going through an intermediary crowd funding platform to still be able to do so.

(2) Cap on Raise
The maximum raise of $1m is appropriate for many startups however the rule should be clear on companies wishing to raise additional capital due to the business demand and the need to do so. Capping the raise at $1m within 12 months may make a rapidly growing startup that needs more funds to sustain their growth and be competitive to be less competitive. Since Reg D rule 506 permits unlimited capital raise from accredited investors, same should apply to crowdfunding but with instances and clauses.

(3) Marketing the offering
Most Reg D 506 offerings fail once they realize the limitation and reaction of the market to general solicitation, meanwhile thousands would have been spent on packaging the offering. While this limitation is expected to be removed for Reg D 506 offerings, lesson should be learned that the inability to market the offering under the crowdfunding rule will prevent startups from reaching their desired goal. The ability to market and advertise the offering responsibly (subject to anti-fraud and investment advisers Act of 1940 and rules promulgated thereunder) will enable companies that lack name recognition to be equally competitive and have access to capital