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Crowdfunding Massachusetts Tips 2015
Crowdfunding Massachusetts Tips 2015
CROWD
FUNDING
JOBS
SITES
COMPANY
DEBT
PLATFORMS WORK SECURITIES SEC
UNITED
OFFERING
PATENT
EARLY
INTERNET NEEDED
EXCHANGE MICROCREDIT
ACT DONATIONS INVESTOR
MONEY PROJECTS
ISSUER SMALL
FUNDING PORTAL
INTEREST
PUBLIC
START-UP
Crowdfunding:
APPLICATIONS
EQUITY
WEB IDEA
BORROWERS
What is Crowdfunding?
Crowdfunding is a way for small businesses
and start-up companies to raise money
online through investments from the general
public. While the concept of crowdfunding
itself is not new, traditionally individuals
either made a pure donation, as to a charity,
or received a small reward in exchange for
their contribution. Recent legislative changes
have opened the door for a new type of
crowdfunding: equity crowdfunding. Soon,
equity crowdfunding will allow entrepreneurs
to raise up to $1 million in any 12-month
period, through the offer and sale of ownership
interests in their businesses*. Offers will be
made over the Internet via websites run by
an intermediary who will be either a brokerdealer or a funding portal. The websites will
have investment opportunities available to all
investors. Investors will no longer simply be
donating funds to crowdfunding ventures,
but will instead take a financial interest in
the success of the venture as partial owners.
*Equity crowdfunding is not currently offered.
However, the SEC plans to issue final rules and
regulations in the near future, which will make equity
crowdfunding available to all investors.