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New Federal Crowdfunding Rules

Jennings Strouss Blog

May 16, 2016

“The new federal crowdfunding rules went intoeffect May 16, 2016.  Now startups and other growth-oriented companies can raise up to $1 million dollars per year from the general public, provided the company (the Issuer) follows the new rules adopted by the Securities and Exchange Commission (SEC).   In contrast to the donative-models of crowdfunding commonly associated with Kickstarter, Indiegogo, and GoFundMe (where participants may receive, for example, a T-Shirt or early release of a product in exchange for a donation), equity crowdfunding investors are like micro-venture capitalists who could enjoy a return on their investment if the business is successful.”

To view the full article. please click here.

 

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