Startup founders will have another tool for raising early stage capital starting next month. On May 16, the SEC is allowing companies to use crowdfunding to raise money.
After much talk about the coming changes to equity crowdfunding since they were passed last year, it’s actually happening. Raising money via the web has been possible since the JOBS Act was passed in 2012, but the new regulations under Title III of the federal law open it up to people who don’t necessarily identify as investors.
“What’s changing is that nonaccredited investors can now participate and buy equity in companies,” said Alex Castelli of CohnReznick. In other words, you don’t have to be a millionaire to make an early bet on a startup.
Read more at Technical.ly Baltimore
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from http://baltimoretech.org/news/equity-crowdfunding-is-about-to-make-you-a-venture-capitalist/
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