New Equity Crowdfunding Rules Could Change Startup Game

Crowdfunding donors may soon be getting a perk with a bit more upside in exchange for their cash

The Securities and Exchange Commission on Wednesday put forward rules that would help guide a new investment strategy known as equity crowdfunding. Regular investors, meaning most Americans over the age of 18, may soon be able to invest in startups via crowdfunding in exchange for company equity

Previously, only wealthy investors (known as accredited investors) were able to invest in startups in exchange for equity.

The new rules would allow startups to raise up to $1 million in a 12-month period from donors online. Now when donors invest in projects on sites like Indiegogo, they could receive company stock instead of a gadget or t-shirt Read more...