This article was originally posted in Equities.com
By: Dusty Wunderlich
The Securities and Exchange Commission recently legitimized crowdfunding as an investment platform. It was once just the darling of small niche projects on sites like Kickstarter and Indiegogo. But when the SEC finalized crowdfunding rules under Regulation A+, it opened investment opportunities to millions of people previously shut out of the system.
Crowdfunding enables startups to answer the $5 million question: Is there a demand for our products in the marketplace? By allowing individuals to pledge small amounts of money to campaigns, startups bypassed traditional investment structures and went straight to their markets.
Those markets now have unprecedented access to investments, thanks to the democratizing effect of the Small Business Jobs Act. That legislation mandated the revised SEC guidelines and paved the way for non accredited investors to enter the game.
Read the full article here.
