Crowdfunding
Investment -Based Crowdfunding
On April 5, 2012, President Obama signed into law the JOBS (Jumpstart Our Business Startups) Act, including provisions making “crowdfunding” legally available as a means of raising capital for startup companies. The actual legislation (as well as the regulations likely to emerge from the subsequent SEC regulatory review process) will have a substantial and immediate impact on the way capital is raised for, in particular, fast-growing, potentially very large businesses, as well as very small, less ambitious startup businesses.
Ray Burrasca
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