On this morning’s WJR Business Beat, Jeff discusses new regulations in equity crowdfunding, which allows startups in private businesses to raise capital from the crowd. New regulations went into effect yesterday, allowing investment up to $5 million in a given year from the crowd, as opposed to the previous approximately $1 million allowed.
Tune in to this morning’s Business Beat to learn more about equity crowdfunding:
“So, whether you’re a company looking for funding, or you’re an investor wanting to have a shot at hitting it big, check into equity crowdfunding on platforms like startengine.com or seedinvest.com, by way of example.”
– Jeff Sloan
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Good morning, Paul.
We know all too well that funding for a startup company is one of the most critical resources a startup entrepreneur must secure in order to launch and grow. But getting it is one of the toughest challenges any entrepreneur faces, whether pursuing a bank loan or equity type investments, say from venture capital funds or angel investors.
But in 2012, in the U.S. the doors swung wide open to one of the most powerful new forms of early stage startup funding available to entrepreneurs, it’s called equity crowdfunding, and it lets startups in private businesses raise capital from the crowd. And that allows everyday people to invest as little as $100 directly into a startup company that they believe in.
Equity crowdfunding lets everyone be an investor, not just VCs and private equity firms, and as long as you follow the SCC rules and regulations on how to conduct an equity crowdfunding campaign, this allows startups to raise funding directly from those individuals who believe in the company and want to go for the ride as an owner, putting cash in and ultimately cashing out when the company either goes public or gets acquired.
And yesterday marked a big day in the U.S. for equity crowdfunding and that new regulations went into effect that now are going to allow investment up to $5 million in a given year from the crowd, as opposed to the previous approximately $1 million allowed. Now, given that the U.S. Census Bureau indicates that new businesses are forming at the highest rate in 13 years, timing couldn’t be better for this new type of funding now available to entrepreneurs.
So, whether you’re a company looking for funding, or you’re an investor wanting to have a shot at hitting it big, check into equity crowdfunding on platforms like startengine.com or seedinvest.com, by way of example.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.
